the cmi story, page-18

The CMI result came out after the close of trading yesterday and the bottom line result was a loss of $449,000 after tax which was lower than the company's earlier forecast. The result included an impairment loss of $8m on the vendor loan as pre-warned. It does appear as though the earlier forecast did not make allowance for the eventual $2.4m tax bill which took the final result into the red. There was also a $3.5m writedown of assets due to fire damage at the TJM plant but this was compensated by a $4m insurance payment.

Total interest bearing debit is now a miniscule $588,000 while the cash shown in the balance sheet is now $9.0m. Yet the company does not feel confident to pay Class A shareholders the 14c full franked dividend to which we are told in the constitution that we are entitled to.

Operating cash flow was $10m.

The accounts have not been cleared by audit as yet and there was a box ticked which read "the accounts are in the process of being audited or subject to review".

I will write more in coming days but I am a bit flooded by annual reports at this time.

GPASAS