Ann: Half Yearly Report and Accounts , page-2

Well it's taken a few reads of the Half Year report to digest. Whilst the result itself is disappointing, there has obviously been many issues which they have had to sort through and still have yet to resolve.

It has obviously been quite a learning experience for them from a manufacturing performance perspective and in terms of meeting client and country specific requirements. Having faced these issues should put them in a better position for knowing specifications etc that need to addressed in future contract negotiations. I can kind of understand why Russell as a major shareholder wanted to get in there and oversee some change.

Good to see that the Korean contract is still there and I don't think they could have foreseen the issues with the Vietamese contract.

I'm still curious about thee COO appointment...I would have thought that specific industry experience would have been required given the issues faced. Having said there are benefits of a completely independant view coming into the company. I'm also wondering if the appointment is somehow linked to the related investment into VMT by the CGFH Group. Maybe with agreeing to a placement they wanted input into the running of VMT - and getting someone they are associated with into VMT was the result - rather than say a board seat.

I'm not expecting too much for the March Qtr - and hopefully the June Qtr will be the major turnaround qtr - especially given the new factory will be up and running.

I've been still buying a few recently and now it's a hold for me...although it could be the buy of the year at current levels...albeit at some risk until we see evidence of a turnaround in a cashflow and results sense.

Given the timing involved that I expect for a turnaround...I'm not expecting a lot of share price movement...and the day traders to disappear.

sents