Ann: Preliminary Final Report, page-4

Having a quick overview:

Decline in revenue more than expected due to continued gradual switching of group pharmacies. Clearly Corum need to reverse this by competitively tendering Corum Clear and winning with some significant groups. Alternatively of course an acquisition or equitable merger with another software company would provide immediate returns with economies of scale increasing profitability.

Cost reductions look quite impressive in some important areas however the product development expenses have been capitalised which is quite legitimate.

Years on still talking about acquisition etc. But nothing has happened.

The cash burn (investment) on the development of Corum Clear and continued improvement of the current range has to start to pay off...... soon. This last FY revenue level must be the all time nadir. Signs of a turn around must be seen in first half of next year ....no ifs or buts.

I am surprised that growth in revenues from sale of hardware/accessories has been reported particularly considering that they saw this as being something that was not worth the trouble due to poor margins. Not surprising though considering tax incentives available. Also amazed that they have been putting in efforts to marketing their payments services and winning new clients.... are they really sure where they want to seek growth and put in marketing effort.

Not sure if the market/analysts will see the positives. It perhaps all ultimately hinges on belief that Corum Clear will be the successful revenue driver and the large investment has been justified. That may require some runs on the board first.

Fundamentally though with the expected decrease in R and D spend and continued control of costs, Corum will be a profitable business going forward and is worth a lot more than the current market capitalisation. Its value if Corum Clear is the best cutting edge software available (it should be) would be worth a lot more to the Corum's major competitors (except perhaps Fred). To pick up Corum's clients plus a superior product would be an attractive proposition.