Ann: Quarterly Report and Appendix 4C, page-17

It is very difficult to tell without the income statement. A year ago they needed to 5x their revenue to break even. They appear to have 2x so far. The increase in revenue is good. 

We will see if they have been able to control their costs. By my calculations, they haven't. i calculate quarterly cash costs have increased from $28m to $38m in a year. They only have $19m revenue. 


The bad debts, while an improvement, are doing as predicted and as occurred last year (seasonal as you write above). The percentage bottoms in December due to the increase in book and the impossibility of these being delinquent. 

There is zero evidence in the quality of the new customers. They may be better but we will have to see the next half yearly to know if it is true. 

All up: the revenue number is great so this is a good announcement. The half yearly will give more of an indication whether this company is on the road to success or failure. I suspect they are still needing to 4x revenue to break even.