Ann: Appendix 4C - quarterly, page-34

That quarters cash in was much less than I had expected it to be. I'll be watching from the sidelines for a bit longer still I think. It appears that the AlexiCool ramp-up is finishing now so buying to me would be placing a bet on winning contracts in another large new market, which they are working on. However it still comes across as a riskier play to me and I am not feeling that success is an inevitability.

I was also interested to note that many operating costs have been cut this quarter relative to the year - staff, administration, R&D. These cute aren't big enough to make an impact on profitability, but they could be a sign that management see growth as slowing down now. Of course manufacturing costs are higher now, reflecting their incresed product output, but the supporting roles are being cut rather than held steady. If they were expecting further growth in the near term I would have thought they'd hold these roles steady.

Their expected next period outflows have them increasing again, but these figures don't have to be followed any more than their previous CFN claims had to be. Also the cynic in my says that the the $200,000 increase in staff costs for the next period will merely be GR's EOFY bonus.