Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-18

People look at the margins from software products and yes very juicy! But they ignore the years of cash burn and losses to get to that point and not all products end up being a success.

Rather than wish to turn a potentially very good services company into a software developer, I allocate my investment dollars to different companies. So I have my investment in TNT which covers the Australian cyber services side and I have an investment in Senetas which covers the cyber hardware/software. Senetas has ploughed millions into Votiro software and racked up big losses - fortunately has its encryptor business to help with that. Votiro is on the cusp of making a profit next FY but it’s been a hard slog. So no magic bullets in the short term from buying software products - Senetas has had a pretty trashed share price for years because of Votiro.

I would rather see TNT continue to bed down it’s services purchases and drive them to increased performance than go haring off buying software. It does have a few irons in the fire with proprietary software