Ann: Change of Director's Interest Notice, page-37

so I don’t have any accounting training, but have picked up a fair bit from running my own business - however many of the things my accountant did seemed a bit like black magic to me.

One of the problems with the 4C, is it is not a set of accounts, it is basically a cash flow report with some extra info on revenue and expenses. You can get info on what cash has been spent on acquisitions as 2.1 tells you that, but it doesn’t break it into what is an expense and what is a capital amount.

e,g if you look at the 4c at the end of January there has been over 13,000 spent on acquiring entities, but in the half year accounts there is only 1,071 as an acquisition cost, so the rest must have been the capital cost of acquiring the entities and thus increases the assets.

while it is always nice to get the 4C and particularly the company commentary, it is really the half year and full year accounts that give the full picture. I would assume once TNT starts delivering consistent positive NPAT they would be allowed to discontinue quarterlies but that’s probably a fair bit away.

the 4C for the 3rd quarter showed very little cash going on entities/investments, so the assumption would be very little in the way of expenses in that quarter.

Because it’s a cash flow statement, it only shows money received - its a snapshot at a particular time - it doesn’t show work that can be billed but not yet paid. So you end up up with a mismatch, where staff are being paid, but the money hasn’t come in yet, so it looks like they are losing money terribly. Once the work is billed and the money comes in it looks much better. They will be doing accrual accounting so they will be matching work and invoices and know what their actual ebitda is.