2nd q report just out

Makes interesting reading will post the annoucement below

Quarterly 4C Cash Flow Release
GPS Online Limited
ACN 010 720 117
Quarterly 4C Cash Flow Release
31 December 2004
Quarterly 4C Cash Flow Release
Page 2 of 4
Appendix 4C Commentary
Introduction
This report should be read in conjunction with the Quarterly Cash Flow Report lodged by the
Company on 31 January 2005.
Financial Summary
The attached Quarterly Cash Flow Report shows a negative net operating cash flow of $254,122
compared to the previous quarter’s negative net operating cash flow of $646139.
The determining factor for the quarterly cash result is primarily outstanding Debtors that relate to
invoiced work undertaken for the United Arab Emirates Navy in 2004. It is however, expected
these amounts will be received in the current quarter.
Highlights
• QVEN
GPS Online Limited announced it would make an off-market takeover bid for 100% of QVEN Limited
(QVEN) on the 22nd of December 2004.
The consideration offered to QVEN shareholders is 1 fully paid GPO ordinary share for each 1 fully
paid QVEN ordinary share held which values the acquisition at $2,045,897 (as at December 22,
2004 with a share price of 0.047 cents).
The QVEN acquisition is “stage 2” of GPO’s strategic plan, and follows on from the significant
targeted cost cutting measures the Board put in place during early 2004, which have created a
new low cost platform for the GPO group.
Accordingly the Executive Team mandate is to not only grow the business through organic growth
but also via the acquisition of entities that bring more regular and recurring cash flow to the group.
It is envisaged that the QVEN/Omni-Quant takeover will achieve that result.
The GPO Board anticipates that the QVEN takeover (if successful] will immediately be earnings per
share positive for GPO shareholders.
• MDDS
GPS Online have successfully completed the second of two in-water mine simulation explosion trials
at the Defence Department Test Centre in Victoria.
The trial consisted of a series of 48 simulated mine explosions in a Defence operated dam trial site
environment. The test program, conducted in association with the Defence Science and
Technology Organisation (DSTO) allowed variables such as vessel orientation, blast position and
mine size thresholds to be investigated.
This successful milestone allows the Precursor Minesweeping Drone Fleet to now be fitted out with
the enhanced MDDS system. (The total value for the current R&D contract is in the vicinity of $1
million with the overall project being approximately 50% complete)
Quarterly 4C Cash Flow Release
Page 3 of 4
The technology development will allow RAN operational staff to receive advice on the location and
dynamics of an underwater mine detonation even when the vessel operates far offshore
• RAN
The Royal Australian Navy has approached GPO to facilitate a long term maintenance contract that
will allow them to prolong the life of the current mine sweeping precursor fleet of vessels. This
decision is a direct outcome from the successful MDDS trials mentioned above.
• COMET
GPS Online Limited subsidiary WasteWatch Systems Pty Ltd., a waste management and hosted
services company, has been awarded a $52,000 grant from federally funded AusIndustry under
the Commercialisation of Emerging Technologies (COMET) grant scheme.
The COMET grant system provides funding to assist Australian companies to take emerging
technologies to market. Funding is awarded based on the merit of the product’s technology, the
market opportunity and the calibre of the venture’s management.
The awarding of this grant will provide increased funding for the fast tracking of further
development, integration and market development of the WasteWatch solution into both the
Australian and International market place.
• Ballina WasteWatch Contract
As at November 11, 2004 GPS Online announced the successful commissioning of the latest
solution to ‘clean up’ liquid waste management processes in the Ballina Shire Council area.
The result of an intensive research process by Council staff, Ballina Shire Council are the first NSW
local government to implement the award-winning WasteTrack™ electronic waste tracking system
as the prime method to monitor and manage the collection, transportation and disposal of liquid
and other wastes within the Shire.
Quarterly 4C Cash Flow Release
Page 4 of 4
Summary
The Group’s Net Operating Cash flow shows improvement from the previous quarter. It is
anticipated that further improvements to the Group’s cash-flow position will arise from the QVEN
transaction, together with crystallisation of revenue arising from “Pilot Trails” with some of
Australia’s largest corporations.
Robert Angel
Director
GPS Online Limited
For further information contact…
Robert Angel – Managing Director 07 3376 6688
Robin Levison – Chief Executive Officer 07 3376 6688
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
30/9/2001 Appendix 4C Page 1
Rule 4.7B
Appendix 4C
Quarterly report
for entities admitted
on the basis of commitments
Introduced 31/3/2000. Amended 30/9/2001
Name of entity
GPS ONLINE LIMITED
ABN Quarter ended (“current quarter”)
22 010 720 117 31 December 2004
Consolidated statement of cash flows
Cash flows related to operating activities
Current
Quarter
(3 months)
$
Year to date
(6 months)
$
1.1 Receipts from customers
475,731
891,615
1.2 Payments for (a) staff costs
(b) materials supplied to customers
(c) advertising and marketing
(d) research and development
(e) leased assets
(f) other working capital
-331,011
-116,222
-
-
-18,823
-106,647
-710,261
-398,964
--
-32,522
-279.012
1.3 Dividends received -
-
1.4 Interest and other items of a similar nature received 44
1,155
1.5 Interest and other costs of finance paid -114,902
-179,160
1.6 Income taxes paid -
-
1.7 Other (provide details if material)
(a) Repayment Programs with ATO
(b) Creditors repayment programs
-
-42,292
-113,943
-79,169
1.8
Net operating cash flows -254,122 -900,261
Cash flows related to investing activities
1.9 Payment for acquisition of:(a) businesses (item 5)
(b) equity investments
(c) intellectual property
(d) physical non-current assets
(e) other non-current assets
-
-
-
-
-
-----
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
Appendix 4C Page 2 30/9/2001
1.10 Proceeds from disposal of (a) businesses (item 5)
(b) equity investments
(c) intellectual property
(d) physical non-current assets
(e) other non-current assets
-
-
-
-
-
-----
1.11 Loans to other entities - -20,000
1.12 Loans repaid by other entities - 20,000
1.13 Other (provide details if material) - -
Net investing cash flows - -
1.14 Total operating and investing cash flows -254,122 -900,261
Cash flows related to financing activities
1.15 Proceeds from issues of shares, options, etc. 30,000 30,000
1.16 Proceeds from granting of options -
1.17 Proceeds from borrowings 350,000 375,000
1.18 Repayment of borrowings -50,000 -50,000
1.19 Dividends paid
1.20 Other (provide details if material)
Net financing cash flows 330,000 355,000
Net increase (decrease) in cash held
75,878 -545,261
1.21 Cash at beginning of quarter/year to date 52,445 673,584
1.22 Exchange rate adjustments to item 1.20 - -
1.23 Cash at end of quarter
128,323 128,323
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
30/9/2001 Appendix 4C Page 3
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related
entities
Current quarter
$Au$
1.2
Aggregate amount of payments to the parties included in item
1.2
27,633
1.2
Aggregate amount of loans to the parties included in item 1.11 -
1.2
Explanation necessary for an understanding of the transactions
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on
consolidated assets and liabilities but did not involve cash flows
Nil
2.2 Details of outlays made by other entities to establish or increase their share in
businesses in which the reporting entity has an interest
Nil
Financing facilities available
Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).
Amount available
$
Amount used
$
3.1 Loan facilities (See Note below)
Nil Nil
3.2 Credit standby arrangements
320,000 320,000
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
Appendix 4C Page 4 30/9/2001
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as
shown in the consolidated statement of cash flows) to
the related items in the accounts is as follows.
Current quarter
$A’000
Previous quarter
$A’000
4.1 Cash on hand and at bank 128,323 52,445
4.2 Deposits at call
0 0
4.3 Bank overdraft
0 0
4.4 Other (provide details)
0 0
Total: cash at end of quarter (item 1.22) 128,323 52,445
Acquisitions and disposals of business entities
Acquisitions
(Item 1.9(a))
Disposals
(Item 1.10(a))
5.1 Name of entity N/A N/A
5.2 Place of incorporation or
registration
N/A N/A
5.3 Consideration for
acquisition or disposal
N/A N/A
5.4 Total net assets N/A N/A
5.5 Nature of business N/A N/A
Compliance statement
1 This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Act (except to the extent that
information is not required because of note 2) or other standards acceptable to ASX.
2 This statement does /does not* (delete one) give a true and fair view of the matters
disclosed.
Sign here: Date: 31 January 2005
(Company secretary)
Print name: Robin Levison
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
30/9/2001 Appendix 4C Page 5
Notes
1. The quarterly report provides a basis for informing the market how the entity’s
activities have been financed for the past quarter and the effect on its cash position.
An entity wanting to disclose additional information is encouraged to do so, in a note
or notes attached to this report.
2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to
this report except for the paragraphs of the Standard set out below.
• 6.2 - reconciliation of cash flows arising from operating activities to
operating profit or loss
• 9.2 - itemised disclosure relating to acquisitions
• 9.4 - itemised disclosure relating to disposals
• 12.1(a) - policy for classification of cash items
• 12.3 - disclosure of restrictions on use of cash
• 13.1 - comparative information
3. Accounting Standards. ASX will accept, for example, the use of International
Accounting Standards for foreign entities. If the standards used do not address a
topic, the Australian standard on that topic (if any) must be complied with.