gm update

Hi Folks
I attended the GM and update follows for the benefit of other HCers who couldn't make it.....

- At the board table : Bob Gestor, Simon Kemp, Ian Kiddle and Oliver Carton
- Notables in the audience: George V, Stephen C, uncle_elmer :-)
- INT traded profitably in June; will trade in/out of profitability over the coming months (due to revenue vs. COGS mis-match in timings, I assume)
- Internal INT projections are that they will trade a SUBSTANTIAL profit by EOFY 2010
- Operating costs are reducing further: looking for new premises at 1/3 of current costs
- They focus on cost reduction, revenue increase and Profit every single day
- Do not envisage further capital raisings in next 12 months
- However if 3-4 very large opportunities they are working come off, the may require further capital, but most likely >12 months away
- Belgravia Convertible Note is only debt they have - believe they can repay through cashflow over next 15-16 months, or may do a partial payment and re-set terms
- Focus is off Powersave and Ecobulb as stand-alone products, but they will include them as part of their overall offering/capability to a client if opportunity is there
- Powersave is no longer exclusive; competitors are selling same technology, hence no focus as a standalone offering
- Ecobulbs are technically great, but 50% more expensive that other bulbs and technology gain is only evident to the utility companies. Still own 9% of EnergyMad, but have come up against EnergyMad in competitive situations who have undercut them - again, no point in a standalone business focus for bulbs, rather include as part of a bundled offering
- Capital Raising: 380 acceptances for an average of $7K per acceptance, representing 12-14% of all retail investors
- Pleasantly surprised with the take-up; demonstrates confidence of investors
- At least 1 announcement on a substantial new project this week. Has been negotiating over last 3-4 months. Long-term. Quickly cashflow positive. Utilising all Utiligy products sets
- Will no longer 'invest' in trials, or opportunities where they need to sink funds (I think they feel the products and technologies are now proved in the market, and no need to trial any longer)
- Negotiating 3-4 other major projects
- INT won't pay tax for many, many years, due to carry forward tax loss
- Still a partner with PRI (but no real benefit from PRI recent Victoria Smart Meter win)
- Business is now able to focus on the business, not survival
- Should be no excuses from the Board for not achieving their stated goals
- Will eventually spruik the INT story to brokers, investors, but not a priority at the moment
- No plans for further acquisitions
- Have had 4 approaches from interested parties to purchase INT, but none have progressed; Board have told them to go away (last approach was 4 weeks ago)
- No thinking about consolidation. George V and Steve C were adamant that 85% of all consolidations fail, and that INT should not go down this path for some time
- Top 20 will be released in 1 month as part of the Annual Report

Overall, this Board seems like a roll-up your sleeves, get down to business bunch of guys, compared with previous Boards. Little fanfare or salesmanship - just trying to increase shareholder value (Bob G has a bit of interest in that!!)

Happy I'm still in - my patience has just been extended for another 6-12 months. Let's see where we go...