Ann: Appendix 4D and Half Year Accounts, page-14

Hi littlecorn

All I expect to see is a bit of buffer against weakening economic environment, whether that is cash at bank or significant positive cashflow. They haven't demonstrated these items in a stong economy and with the covid-19 economic hit there is a significant weakening for the IT contracting / consulting market. Along with what they had highlighted as ongoing weakness in their current markets, things are not looking pretty for this company.

There have been a lot of projects being put hold at the larger banks (see NAB articles on reducing projects from over 120 down to 19). This is similar across CBA, ANZ and Westpac. If CPT Global's key markets have reduced significantly by 80% then this will put pressure on margins, revenue and cashflow.

In the last 18 years there has not been an event quite like covid-19 and such a significant reduction of demand. The GFC didn't seem to be as bad as this downturn. If not managed could lead to financial distress and further losses.

Best of Luck
Lost