The underlying mortgage book reduced which is bad, as ultimately...

The underlying mortgage book reduced which is bad, as ultimately that's what will drive medium term value.

That aside, my 1st glance was it was not good. However when I looked at their comment and numbers i suspect it is quite decent albeit there are items I'm not sure about and they never return emails to clarify.

The starting point is $1.6m cash outflow (including rent). I'd normalize it as follows:

* Add back $700k deferred taxes. This was known, will be more of, however is not part of this year's cost.

* Add back $330k expenses re sale of wealth business.

On top of that YBR references paying brokers before receiving lender commissions. The margin change supports this, and suggests (to me at least) there's around $1.4m income delayed to normalize the broker commission / income.

So a normalized cash flow number looks something like $800k to me as a minimum. And that's ignoring the items I can't confirm with YBR because either Sarah Gilbey doesn't return emails or their website doesn't work.

Im essence, in the same way I deducted things from last years cash flow to normalize, am now adding back..

If thoughts are correct next quarter should be at least break even, even if another $700k tax catch up is needed. And depending on other factors could top $2m