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// HIGHBANKISSUE 07 · ON THE BOOK

Coastline Retail Group Ltd

LISTED APPAREL AND FOOTWEAR · US$240M REVENUE

A listed household name of nine decades, banked by a four-bank club of which this bank holds US$15m of US$40m. Profit up 9% in a soft consumer year; cash conversion down from 131% to 83%. Three accounting footnotes explain most of the difference.

COMPOSITE TEACHING CASE

Coastline Retail Group Ltd is a fictional construction. The figures, relationships and decisions on this page are illustrative — built for teaching, not drawn from any real borrower or transaction.

// WHAT WAS ASKED

THE REQUEST
Club facility
US$40m across 4 banks
Our share
US$15m
Ask
Renewal, plus consent to lift the dividend
Payout policy
60% to 75% proposed
ON THE FILE
NPAT (reported)
US$14.2m, up 9%
Operating cash flow
US$11.8m, down 31%
Cash conversion
83%, from 131%
Provision release
US$3.2m, credited to profit
Dividend ask
75% payout, from 60%

// WHAT THE BANK DID

Renewed, and the dividend consent declined — with a cure rather than a refusal: cash conversion above 90% for two consecutive half-years, then the conversation reopens.

The reasoning is in the file itself — the four options that were on the table, how readers answered, and the senior banker's read of the same numbers.

Open issue 07

// READ FROM OTHER CHAIRS

The same file, and the same week, from the chairs of the people on the other side of it.

Nothing further is recorded here about Coastline Retail Group. This record holds published files only — when the business next appears in an issue, its entry grows.

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