Ann: Preliminary Final Report , page-34

Pickem,
Well done all correct. Lets hope the squeezed margins become a thing of the past as management get the new plant under control and steady production rates. Oil price volatility flowing through to caprolactum prices and then accounting treatment of inventory running some 6- 9 months behind are a cause of most of the vlatility in margins. But we are looking for higher spreads around 10% plus would be more comfortable and shold be a reasonable target by management.

It has been a learning curve remember starting from scratch and growig so quickly.. A lot of the staements you quote from the annual are history now but the nextmeeting will give better guidance and report on experience of market conditions etc in the firstqtr.

I cant go to Adelaide but will be at the Sydney briefing. We need to pressure management to give gudiance on the next div at least and forgetthe talk of any further acquisition suntil the current new plant is beeded down running smoothly and on higher margins. Debt paydown should also be a higher priority.