Ann: Appendix 4C - Quarterly Q3 and Commentary, page-11

As a trained accountant I was always a little scared of today. Not because I have concerns about the business, but because this is a complex business and the quarterly could easily throw people off.

The most important thing to understand with FLC is that by and large the recognition of revenue and the collection of cash will never be perfectly aligned.

As an example, the company received USD$100m for the Veneszuela project in advance, but as yet hasn't recognised a dime to revenue. Equally, there may be projects recognised to revenue, but cash collection may occur months down the track. As a result, getting a true understanding of business performance based on the cashflow statement alone will be very misleading, as is the nature of a business selling both large scale engineering projects along with small scale product (plant) sales.

I shared with a few posters yesterday that my hope was for management to give a very detailed commentary with the quarterly, which they have done. I encourage everyone to have a good read of their comments, as imo they give a good overall picture of the stage of each of the key components of the business, and set expectations for the future performance of the business. The conference call will also be extremely helpful is giving further depth and clarity to outlook for the company.