Ann: Appendix 4C and Quarterly Update, page-172

So what did the numbers really say:

1. They missed the target (all be it due to late debtors)
2. Most of us knew there was a considerable amount of non-recurring annual software licences
3. Staff expenses were materially different with no explanation
4 The next quarter projection looked skinny ( with an explanation, but naturally people look at the headline)

Now that is what people saw. So, I reckon what happened was highly predictable.

Investors here have been patient. They wait every 3 months in the hope that management will tell them something. Some quarters we get told of R&D in testing, next quarter its not mentioned (did it fail, is it not marketable are natural conclusions). Decipher Works a year or so back were going to managed services and there was going to be a PAAS introduced. Is it still? Has any progress been made?

So I don't blame anyone for their reaction.It is a long time between drinks.


Now me, I understand what happens to cash flow at Christmas because it happens to me every year. I know about debtors and collections. When you look to grow you need to add staff and resources ahead of the curve. I know you cannot count on non-recurring revenue every year and our bankers definitely do not.

Therefore, in absence of explanation I try to find qualitative factors. Knowing C10 has been training staff in partner products, that work with Snowflake, to make cloud migration more seamless tells me they expect more of this type of work.

Numbers tell a story when they are explained. Not all people are accountants or business minded. Just saying we needed to add to the headcount due to an increase in projected work or our cash flow will be down because of Christmas, but our contracted sales are projected to be X adds value.

This tells a whole different story and explains the numbers. Numbers of them self are very blunt and open to different interpretations.

I am surprisingly more confident than ever, but fully understand where people are coming from. I stand by my criticism that management need to do more to fill the expectation gap, simply because it is their job in a public company to do so.

Cheers