Ann: Trading Halt, page-7

I respectfully disagree. The market was well informed with all relevant infomation as it occurred (unless evidence to the contrary exists?).

It was not necessarily bad news yesterday though. The decreased profit was driven by increased amortisation with products that are yet to scale to full potential (this is how the company treats R&D expenditure. It was more accurate to look at the cash flows to see true profitability of the firm). The fall in revenue was due to deferral of revenue recognition due to schools waiting for the impending 'next generation' solution and the redrafting of 109 contracts into one single government contract announced this morning. The directors placed a trading halt as soon as possible to prevent misguided trading.

The app based competitors have been talked about numerous times on this forum. The inherent disadvantages to their platforms do not place significant risk on existing MWR clients although it does give opportunity for MWR to innovate to capture smaller schools and expand (I anticipate this will be the direction of releases next year. Mr Fortunatow spoke in an interview of a product that will scale better than the current solution so this makes sense).

Let the directors breathe. They have more cash in this than any other investor.

Scrutinize baseline profit figures and stop relying on qualitative analysis from a MD that is known to be conservative with his outlook.

We did not acquire anymore shares yesterday as we are involved in several capital raisings at the moment but would have added to our position if allowed.

Boxing day sale came early this year by the looks of it.