director spends $86,337 on market , page-17

tonydawe,

thank you for your insightful posts. I am interested in CCF but there are a few points I have been unable to answer for myself.

In relation to your last post "CCF receives its income from customers in staged payments each quarter and at key milestones over the life of the contract – land purchase, seedling order, planting and completion each year. This enables CCF to match its cashflow with expenses", I am confused.

For instance, while CCF reported a small net profit of $0.9m in FY11, it reported net operating and investing cash outflows of -$5.7m. This follows a similarly large cashflow loss in FY10. It appears expenses are not matching with income as you suggest, atleast in cashflow terms. Hence the significant requirement for capital (both debt and equity) in the company's life to date.

The accounting for how the FY11 profit was calculated was not well disclosed in the annual report, atleast as far as I could see (admittedly not an exhaustive search of every note in the accounts). Given the long dated nature of the assets and revenue, and the heavy capex involved, understanding the accounting is very important for investors.

For instance, does the profit recognised hinge on the assumption that a carbon market will exist when the trees revert to CCF's ownership in 14 years time? (and there is some discounted PV of these cashflows?).

Any information that you could share in relation to the above would be most appreciated. Thanks for your time.