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

Hi dragonz, you are right for the first six months, there are issues that will impact bottom line here in the second half without the Coronavirus.

CPT Global wrote off half the company value in intangibles due to previous assets/investment in business not generating income. Intangibles have varied on the CPT Global balance sheet from when fist listed in 2000 ($6.443M) and increased up to $9.8M in 2006 through to 2010 where it started declining. Most of the Intangibles value is in Australia, so not sure what business has declined since listing on the ASX. Intangibles are now written down to $0.

In the Directors report there are issues highlighted that will impact cash flow in the second half:

1) Canadian payment modernisation program will not yield as much revenue due to industry delays

2) Conclusion of risk reward contracts (which lead to an increase in receivables for the first half but have now concluded)

3) Australian Banking sector growth uncertainty in the second half (pre-corona virus). There were signs the decline in revenue had stopped, but no growth yet.

4) The corona virus impact should be high for this type of company. Their consultants should not be on-site, non-essential staff. If Australian banks are allowing consultants to work remotely, then decline should have stopped, but Sales Teams can’t get in there to make more sales. Growth should not be returning this financial year.

5) Other positives for the first half, like winning the University testing contract for Workday will be delayed.

In all tough times for everyone, but this company is included and may experience bigger impact than what the share price says.

Best of Luck

Lost