Ann: Preliminary Final Report, page-4

"Firstly, it appears a capital raise is well and truly off the cards. This was my biggest fear."

They started the half with over $6m in net cash so I never thought a capital raising was on the cards. But I certainly expected the dividend to be suspended (even though the 0.5c is somewhat token-like).

Given the fixed cost structure of the company, this result could have come in as just about anything, especially given that they did not lay off any staff. (That directors and management took a 40% hit to pay, instead, is something of a statement of the ethos with which the business is run).

I was fully expecting an accounting loss to be incurred in the second-half, and that they broke even is no mean feat.

What was impressive, I thought was the resilience of the cash flows, given the company still did not fall into negative free cash flow territory in the half. But I haven't checked to what extent they were supported by government subsidies.

Under the circumstances, it is a near-meaningless result, although the way the balance sheet has been preserved is noteworthy, with them still ending with Net Cash of $4.7m, despite paying a $1.6m dividend in the half.

And it is not as if they have thumped the working capital account to do so; Working Capital finished the year unchanged on 31 Dec 2019's level, so their will no need for any investment in working capital as demand recovers.

I expect there to be be some sticker shock selling today which, for an illiquid stock like this, is likely to impact the stock price.

But I think the one-in-a-hundred year storm has been weathered very well.

I expect the sell-off in coming days will provide an opportunity which, in coming years, will be seen viewed as an great buying opportunity induced by an extraneous event.

.