Ann: Market Update - First Half-Year Results, page-6

Really need to start trying to work out margins and scale these guys need to continuously end up with cash flow positive and then profitability without it all going to financiers and management.

Why has terra dura taken so long to be rolled out? What is approximate pricing. I have enquired and not got a clue.

Lets see how they go in next quarter and if they actually provide numbers useful in determining how the business is really going that can be compared quarter by quarter and actually align with yearly accounts and comments in reports.

Need to see if there is a real change in business momentum and if clients are just rolling over onto new vehicles and the lifetime of those vehicles as unless there is a expansion in mine vehicles or fleet expansion than numbers may not be consistent and repeatable going forward.

Be very careful of this market unless you know it well is my opinion. Years ago we saw sales for landcruisers as new fleets were fitted then it dried up as they didn't require many parts etc. Now with OH7S we see same again with possible new clients and new world regions ( remember there is only so many big miners who run a lot of mines but economics and local worksafe rules determine actual use regardless of motherhood statements about world standards) . Management really need to comment on real market size that is possible and how t is shared by competitors or how they are actively converting users to their product with a few published case studies of products so accountants and insurers can see benefits and thus enter contracts with AEB .

Need to get to point that a bank will finance them on a decent rate.

Just my opinions



ASX RELEASE 31 January 2017
Market Update: First Half-Year Results
 Operating revenue of $2.64m - up 50.1% on 1H 2015/16
 Half-year loss of $0.39m compared with $0.91m loss in 1H 2015/16. Operating profit of $0.025m in December 2016
 Over $1m of orders received in January 2017; a record for SIBS® IV wet brakes.
 Operating cash outflow of $0.15m, compared to a $1.41m outflow in 1H 2015/16
 Good order flow for Terra Dura® expected in 2nd half
Advanced Braking Technology (ASX: ABV) (‘ABT’ or ‘the Company’) wishes to advise the market of its unaudited results for the half-year to December 31 2016.
Trading revenue of $2.64m was up 50% for the first-half compared with same period in 2015/16, driven by stronger demand from both domestic and international mining customers. An improved first-half operating loss of $0.39m was supported by a profit of $0.025m in the month of December. Total revenue was up 42.6% to $3.16m, while expenses fell a further 14.6% to $2.03m. These results were reflected in a major improvement in operating cash flow performance.
Stronger domestic demand for our failsafe product range underpinned our first-half. This has been complemented by strong international orders in January, with significant orders received from Mongolia, Canada and Indonesia.
ABT is very focused on executing its Terra Dura® roll out in the coming 6 months. The company will take delivery of its first production sets in February. In the first instance, ABT will be fulfilling 3 customer orders following successful trials and then meeting the needs of 9 other customers who will purchase individual kits for evaluation.
ABT’s Managing Director, Graeme Sumner commented, “It has been pleasing to see that demand for our world leading failsafe products has picked up as we prepare to expand with our Terra Dura product range. Successful trials conducted over the past 7 months have now put us in a strong position for growth.”