dec 07 half year report

The half year report, while it shows a loss due to the one-off cost of expansion, it also reveals that PHG is currently operating profitably. That fact can be discerned from the directors' decision to book the Deferred Income Tax Asset of $155,872 and the absense of any qualification on that point in the auditors' report.
That figure of $155,872 is the difference between EBIT $638,132 (loss) and Net Loss After Tax $482,260 and represents the future tax benefit of carried forward losses. Deferred Income Tax Assets can only be booked if there is virtual certainty that there will be future profits earned against which to deduct carried forward losses for tax purposes. That requires that there are profits currently being earned. On that basis the full year 2007/08 report should show a healthy profit.