##PS Could Tex comment on the statement in today's announcement which states "The normalised full year net profit after tax is expected to be no better than a break even position". What do you make of this Tex?##
Dwayne, on the original forecast of $4.5-$5 million (before ammortisation) the nett profit would have been $1.2 to $2 million, meaning they were going to write of approx $3 million on goodwill.
Now they are projecting full year (before ammortisation of goodwill) $2.96 million and a net profit of $460,000. which is not much better then break even.
It's important to remember that the real cash profit of $2.96 million stays in the company, writing of goodwill is the same as claiming depresiation of plant and equipment, it's like a tax break for the company so they can state less profit and pay less tax.
I think you'll see some positive changes sooner rather than later, some of the larger shareholders will be calling for Peter Wilkinson's head.
If you want to tell him what you think here's his phone number 03 8542 7777................lol.
I don't know how deep your in or what your financial position is, but if you can... my advice would be hold, I have been in this position before only to see the company turn it around over the next 12 months. They are still holding $$$$$ assets and the business can generate good income, but clearly their numbers man is way off key.
The larger shareholders will make sure that these guys are made accountable and the price will recover sooner or later. better times ahead IMHO.
