Ann: Appendix 4C-VPC.AX, page-13

I think your time frame for growth and expectations for this business is completely out of whack.

To anticipate a big rise in revenue for the quarter just gone is simply not practical whatsoever considering the Christmas period and the dead month of January. Clients/staff are on annual leave over this period, there would be very limited training going on. Any content being created would at the very earliest not be collected in revenue until April or May which we are in now. Even then BDM's only really came into full swing during end January.

Have you made contact with Russel or management? They always indicated there would be a 3-4 month lag from the outset in revenue, this quarterly was never going to be spectacular from that point of view.

Re: your reference to revenue 'should have been 600k' - I have no doubt revenue was indeed far in excess of 600k for the March quarter.. It was collection that was down due to the post Xmas period. There could be many factors at play here with timing issues. The December Quarter also may have an increased cash collection period due to businesses paying invoices by December cut off periods. Timing is an issue - as for your swings and roundabouts reference, I find that incorrect as the business is too infant as a group to make that comment as we have only really had one full quarter from January to March to judge. A quarter where collections in virtually every sector are down.

Russel confirmed to me the growth rate for March was 18% and it was all enterprise growth and that presents a real opportunity here particularly with the SME sector now kicking off also.

I hope you can see this post for what it is. I read over some of your original posts back in the day, particularly the links and opportunity you saw to companies like seek. You really nailed the growth aspects and opportunities in your original thoughts, however I think you are lacking on the commercial reality of the collection of money and growing a customer base in an infant business.

1PG is a fine example of that as you know. Needless to say, the business will be judges on it's performance and I think this current quarter and future quarters will show us a much better metric. I still really enjoy your posts.

Cheers.