Ann: Quarterly Activities Report, page-6

Good observations, @reecevan. There is a lot of seasonality in the industry — which is why ENA report quarter on quarter PCP. June and Sept are the biggest quarters for the Australian business and December is the biggest quarter for the UK business. The lag of revenue to receipts varies a lot because different broking houses are all on different credit terms (varies from 30 to 60 days credit terms). But, ENA has 90 days in total to pay the insurers. Growth in CF will be dependent on how much investment the team makes as they continue aggressive expansion. But, compared to a typical professional services business (like law or consulting) there is more operating leverage here in an MGA insurance underwriting business. This will shine through with higher margins and ultimately higher levels of EBITDA in time. My hypothesis is that lean and agile MGAs building thriving niche businesses, such as ENA, will end up growing profits faster than the industry as a whole, at higher margins.