Ann: Half Yearly Report and Accounts, page-7

This is a complete dog.

Looking at the impairment of Digital Games of $1.9m, i'd be questioning the goodwill in Lemonsky, they forecasted a growth rate of 10% yet the revenue is down 10% from the same period 12 months ago. With the big staff turnover at Lemonsky this growth is in my opinion unjustified.

Company is taking on more debt in Lemonsky. It's clear the integration of Lemonsky into the Group has been a disaster, to say the least.

The Company is burning cash - $10m in 6 months, there's only $3.6m in unused credit facilities available so i expect a capital raise is needed within the next 6-12 months based on the current cash burn rate. Somehow the auditors did not make a mention of this in the auditors opinion report so they must be comfortable (somehow)?

Lots of holes in this stock and I'm not liking the direction it is going - will be selling my position tomorrow albeit however small it may be.