agm, page-10

Don't hold anymore, bailed 2 months ago at a big loss, as previously advised I tranferred my interest to NXS and NDO. I flagged the exit of the CFO and a lack of contract awards as my reason plus the amount of money owed and lack of new work. History over.

I have been quiet, sitting at my computer each morning ready the justifiable venom from share holders.

My take; for whats its worth...

How long can NMS operate without the capital raising being effective (whats left in the bank)?

What they will be doing now is putting a halt spending, new purchases, spares (maintenance), delaying the payment of creditors as long as they can etc. Its a slippery slope once they start doing this, but it is "survival".

What are they going to sell, people only want to buy profitable businesses? The existing deadwood (whatever business streams they are) will be difficult to sell, but they will have to be sold at a loss. When they go, so do staff and we reduce our overhead and monthly salary burdons.

For sure the ROV Supporter will be offered for sale, its old and has had practically no work. The MIH (not MIA) jury is still out on wether they will try to retain the Neptune Trident and ROV's.
The NMS engineering and fabrication division lost a whole heap on Pluto so they will be nervous.
Diving is going gang busters so it will be retained.
Survey and Seastruct are also doing fine so they are safe (IMO).
Count on a Salary freeze for the next 12 - 24 months as well as no more new hires.

I think all of the oversea's entities of NMS should be nervous, its a time a desperate company shrinks and retracts back to core business. With the ongoing strength of the A$ I think the US Diving Company and the like of STS in the UK will go back on the market (just my opinion!!).

I would also be very nervous that it could take weeks to re-open on the ASX. The worry is existing contracts and clients could re-think the viability of NMS when it comes to awarding new work and the unscrupulous companies out there will hold off paying NMS as long as they can in case NMS goes into administration making our cash flow worse.

KING has to step up, be seen and be decisive.