report, page-28

Welcome GLB - no such thing as stupid questions just stupid answers.

Not hard to work out really:

- Big Dividend ($7.4m)

- Office set up costs / development costs etc ($7.4m)

- Low cash generation in first half. Look at the BRR presentation (www.brr.com.au)and they will explain their seasonal movement in debtors. Debtor days blow out at the end of the calendar year and contract at the end of the financial year

(The key to cashflow is to have a look at the consolidated statement of cash flows in the half year financials on page 13. This was provided in the announcement on 28/2/12.

The BRR presentation is worth listening to and addresses many of the concerns I have had, specifically:

- One off benefit of vendor payments was offset by one off costs. First half performance showed true underlying improvement i.m.o.
- Reiterated outlook for improvement in second half on PCP which is demanding and above what I perceive to be market expectations
- Confirmed query raised by Stefanis that they can meet vendor obligations via equity issue or cash. At current SP they intend to use cash with funding available from Bankwest.
- Good candour regarding their reflections on why they missed out on 2 major bids.