Ann: ASTIN COLLEGE, MALAYSIA , page-6

Re the Benchmark College acquisition, my understanding is that AKG did actually buy an initial controlling 51% interest back in 2011. Subsequently they have been able to move to 100% and ousted the former owners from management.

I agree 'RedPill' that Benchmark has proved to be a poor acquisition and has not delivered the return expected. But I give AKG credit for owning up to this underperformance and getting on with improving the business.

Being an investor in a couple of companies on the SGX I note that it is common practice for companies in Asia to have investments in associates where there is a non-controlling interest purchased. Maybe not ideal, but it does give AKG a foot in the door and a way of selling their courses with the associate's student body. Perhaps this is what AKG has in mind with the Astin College investment.

I expect a flat 1H14 result on the evidence of the Chairman's statement re appointing more senior executives coming at a cost. Nonetheless, looking ahead AKG is guiding for the Vostro acquisition to add 1.2 cps to earnings in FY14, and they still have > $3m in the kitty from the exit of the Fasteners business. $A weakness a bonus.

Return on equity is my litmus test, and I see it is rising!