Lodan 2025: How much of the cash is actually accessible after the spin-off
Lodan ended 2025 with NIS 21.6 million of cash, but another NIS 30.4 million sat as a loan to a related company, of which NIS 27.9 million was classified as non-current. Once that is combined with NIS 16.2 million of lease principal repayments, a NIS 12.0 million cash dividend, and another NIS 4.0 million dividend approved after year-end, the liquidity picture looks much less generous than the headline numbers suggest.
How Much Of The Cash Is Actually Accessible
The main article already pointed to the core issue: after the spin-off, the real question at Lodan is not just how much liquidity is listed on the balance sheet, but how much of it is actually still accessible at the public company. This follow-up isolates that gap, between reported cash, the related-company loan, lease obligations, and continued dividends.
The number to start with is not NIS 52.1 million of cash plus the loan to a related company. That headline figure mixes immediate cash with a financial asset whose repayment stretches over years. At the end of 2025, Lodan had NIS 21.6 million of cash and cash equivalents. Alongside that stood a NIS 30.4 million loan to a related company, but only NIS 2.5 million of that loan was classified within current receivables, while NIS 27.9 million was classified as a non-current asset. In other words, more than half of what can look, at first glance, like a liquidity cushion is actually a longer-duration loan rather than cash.
The related-party note makes clear that this is not a side item. Almost all year-end balances with related parties, NIS 30.4 million out of NIS 31.3 million, are that same loan. The terms are also explicit: the loan was extended in March 2025 in the amount of NIS 32.8 million, repayable in 10 annual installments, with interest at prime plus 1%, and NIS 2.374 million was repaid during 2025. This is not a bad loan. But it is also clearly not a cash balance that can be treated as immediately available.
| Item | End 2025 | What it really is |
|---|---|---|
| Cash and cash equivalents | 21.6 | Immediate liquidity |
| Loan to related company, current portion | 2.5 | The only part that looks near-term accessible |
| Loan to related company, non-current portion | 27.9 | Longer-duration financial asset, not a cash cushion |
| Current lease liabilities | 13.9 | 12-month cash use |
| Non-current lease liabilities | 31.6 | A burden that continues beyond 2026 |
| Dividend approved after year-end | 4.0 | Additional cash outflow after December 31 |
That chart is the center of this continuation. Only 41.6% of the combined figure is actual cash. Another 4.9% is the current portion of the related-company loan. Everything else sits as a non-current asset. Anyone counting the full NIS 30.4 million loan as if it were part of the cash balance is giving themselves an overly generous liquidity picture.
The 2025 All-In Cash Test
The right frame here is all-in cash flexibility, meaning how much cash is left after the year’s real cash uses. That is the right lens because the thesis here is not only about the business’s earning power. It is about how much capital flexibility is still left at the listed company after the spin-off.
On that basis, 2025 was much less generous than the operating cash-flow line suggests. Total operating cash flow came to NIS 27.2 million. But lease principal repayments were NIS 16.2 million, and the cash dividend paid to shareholders was NIS 12.0 million. Those two lines alone already reached NIS 28.2 million, slightly more than the entire operating cash flow of the year. Once reported purchases of fixed assets and intangible assets are added, another NIS 3.2 million together, 2025 no longer shows real surplus cash generation. It moves into depletion.
That point matters because the NIS 16.2 million is real lease principal cash, not an IFRS 16 accounting artifact. So this is not a case of strong cash flow being obscured by accounting treatment. It is the opposite. Once real cash uses are counted as they actually occurred, operating cash flow did not cover the combination of leases, shareholder distributions, and basic recurring investment.
That is before even returning to the related-company loan. By year-end, the balance still stood at NIS 30.4 million, a sum that exceeded the cash balance by NIS 8.8 million. So even if the loan earns interest and has a defined repayment schedule, it still represents money that left the public company rather than remaining as an accessible buffer.
What Remains Accessible After Year-End
To see why this matters now, it helps to move from the annual cash-flow statement to a year-end access snapshot. If one starts from the raw NIS 52.1 million figure, cash plus the related-company loan, and strips out the long-term portion of that loan, the remaining near-term pool falls to NIS 24.2 million. Then comes the NIS 4.0 million dividend approved on March 24, 2026, and then NIS 13.9 million of current lease liabilities.
This number needs to be handled fairly. It is a snapshot, not a full-year forecast. The company will continue to generate cash flow, and there will also be further working-capital, credit, and payables movements. But as a snapshot it is very sharp: before current bank debt, before suppliers, and before ordinary operating volatility, the amount left after removing the long-term part of the loan, the newly approved dividend, and current lease maturities is down to a low single-digit cushion.
That is exactly what separates reported liquidity from accessible liquidity. The accounting shows a NIS 30.4 million financial asset. Economically, only NIS 2.5 million of it sits in the current bucket, while NIS 27.9 million already belongs to later years. So Lodan can look as though it has more available resources than it really does for immediate use.
Why This Matters More After The Spin-Off
After the spin-off, Lodan has a cleaner operating story, but it also has to stand more on its own at the cash level. The company already paid a NIS 12.0 million dividend in 2025, and after the balance-sheet date it approved another NIS 4.0 million. At the same time, it ended the year with NIS 45.5 million of lease liabilities and with a related-company loan that turns part of the balance sheet into a longer-dated financial asset instead of keeping it as available cash.
That does not mean there is a funding crisis here. It does mean that the right question is no longer whether Lodan has financial assets or profitability. The right question is how much real flexibility remains at the public company after distributions, lease cash uses, and the transfer of cash into a related-company receivable. As long as that gap remains, the market may treat the cash balance more cautiously than the headline of "cash plus loan" suggests.
The bottom line is sharp: after the spin-off, Lodan’s cash is less accessible than the raw number implies. More than half of the combined balance sits in a longer-duration related-company loan, 2025 operating cash flow did not cover all the company’s basic cash uses, and even after year-end the direction remained one of distribution outward rather than rebuilding the cushion.
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