Ann: Commentary on 2016 full year results, page-38

I din't think it's all about the dividend however the marketing spend clearly hasn't had that much effect on Revenue growth, so that strategy has failed. Buying further manufacturing capabilities is a flawed strategy when they have spent $5.9m in the retail display refurbishment program in the first half of 2016,
for 2H2016 revenue to only be $5mil above 2H2015! How will they sell more production...spend more on marketing!!

The buyback could have been implemented, other companies have been able to do so, so the excuse is poor if not a lie.

The company has clearly misled shareholders with the below statement from the half year results, according to full year commentary the below conditions of satisfactory profit performance were met. Also, nothing has been done to address the NTA gap or "proper" value of the business.

"Directors have announced XPD will implement an on market share buyback scheme allowing for the purchase of up to 10% of the issued capital. In the opinion of Directors, the current share price does not reflect the proper value of the business, particularly given the strong history of growth and earnings, and the positioning of the Company in a high growth industry. In line with the last financial year, XPD will not be paying an interim dividend. Directors anticipate a full year dividend will be announced with the 2016 Full Year results, subject to satisfactory profit performance".

The strategy around an ASX listing seems flawed, they should take this private.