Ann: Appendix 4D and Half Year Report, page-20

Hi Recruiter

Can I ask - what are the certain anomaly's to which you refer?
The half yearly showed that revenue was down 19%, NPAT down 34%
Net cash flow fell from $3.9M to a loss of $900k.
They deserved the bashing they got, and actually they only fell 15% which is not much of a bashing.

I am actually interested to know what the anomalies are.....

Basically ADA are in the raft of companies who are promising a much stronger 2nd half after a weak first half. Some will deliver and some wont.

They said all the right language for me to believe that the second half will be better, but it will need to be very very good to achieve their guidance of a 10% increase in NPAT for the FY. They are going to need to make $7M NPAT in the second half to achieve that. Given that they mentioned capital management initiatives, the board certainly believes they are going to deliver. But that doesn't mean they will.

And even if they do deliver a 10% lift in NPAT, they will still be on a P/E of 19. It will all come down to what P/E Mr Market is prepared to pay for a company that only achieves a 10% NPAT uplift.

Gosouth