Ann: Half Yearly Report highlights, page-17

Let me just start by saying that my first post I noted the positives (massive revenue increase, gross underlying margins of 10.7% etc etc)

It's not the factoring that was the issue, as your 2.4million didn't include the repayments to the factoring of 577k anyway (so more like 1.8mil for the factoring).

What concerns me is this: In the quarterly released (december) they stated they have 11.3 million cash and net recievables. Now they have 9.9million in the half. These reports should AGREE with eachother.

The reason they don't is the bad debt has jumped, from 1.3 to 1.7million. I don't know how the bad debt could of jumped in the half year (june-dec) between the end of january and today. It makes no sense unless they have back-dated some impairment, if that is the case, I'd like to know why they didn't want to impair this quarterly.

Secondly, it is due to 1.2million of share based payments (see note 9). Now I goto note 9 and it says "No share-based payment arrangements were granted during the period. The following table outlines the sharebased payment arrangements granted in the full year ended 30 June 2015:"

Not only that, it says class A performance rights which are stated as:

"Class A Performance Rights The Class A performance rights vest upon the Company’s controlled entities (Subsidiary Group) achieving $25,000,000 of cumulative gross revenue within 18 months from 29 June 2015."

has this happened for the company to pay them out? nope. Are they trying to ease the company balance sheet by writing some of this off early? I'm not sure.

It is just not open and transparent. And the fact they changed the balance of the books since december quarterly annoys me, as it was going to set the market off and thus why I sold early today while I could. I'm going to buy back, but this could fall much further on management losing trust here. It's a bad look to make accounting movements like this.