Ann: Appendix 4C - quarterly, page-34

I think the presentation could have been a lot better and at a glance it looks like the business is not performing as well as it is. Whilst it would have been good to see more revenue growth, it would have been a massive task integrating the recent acquisitions. It's only one quarter and they would be working hard to ensure the existing clients are happy and all systems are integrated. From a cash flow point of view there was $286k in finance costs that you would expect to be reversed now that they have $6.7m in the bank. Also the $487k spent on the Melbourne network roll out could have been included in their Cashflow Performance Flow Chart, along with the finance costs which add up to $773k for the quarter. Thats a big number, so the business is a lot more profitable than it would seem looking at the presentation at a glance. I am guessing most investors would have been looking at the bar chart and selling on that rather than taking these other details into account. This could be a very good buying opportunity, when taking into account the commentary around a possible Sydney data centre aquisition.

From the presentation -

"Capital expenditure of $487k for Q4 was driven by customer led fibre network expansion.In addition to the Company’s launch of the National MPLS Network in March 2019, the Melbourne fibre network deployment has continued with over 11km of fibre installed and under construction, now passing over 500 buildings in the Melbourne CBD and inner metropolitan areas"

Further to this the company is indicating growth going forward, so next quarter should look a lot better from a revenue growth and cashflow perspective -

From the press -

Sales strategy success demonstrated by $7m in new and re-signed revenue

A number of our largest clients have committed and re-signed during this quarter whilst expanding the services they utilise with 5GN. The retention of these customers will underpin organic growth as the Company continues to execute the cross and upsell of its core product suite; a key foundation to the success and maturity of the 5GN sales strategy.