Ann: Quarterly Report & App 4C, page-3

Cash outflow looks negative on paper but noted that there is a bit of one off in there from acquisition and investment in Canberra along with cashflow timing. May hold SP short term

Growth in revenue is looking strong. Big quarter forecast in to June with $22.6m net cash outflows which we can assume should be at least matched by forecasted cash inflow at this point. Based on that as a quarterly estimate, assuming some growth next year, annualised we are getting very close to the $100m turnover company in 2018 FY.

Key will be managing cash over this growth period and driving a profit with the growth. Interestingly they are negotiating a $1m Multi Option debt with Bankwest/CBA. For a cashflow lend to such a bank, I think the BBSY (currently 90 day rate of about 1.82%) plus 2.2% on commercial debt is pretty good at this stage.

To be getting support from such bank finance is a positive in the current very prudent lending market and obviously there is confidence in management to keep this growth on track with profits.