re: Ann: Appendix 4E & Full Year Statutory Ac... FirsovaHi I did...

re: Ann: Appendix 4E & Full Year Statutory Ac... Firsova

Hi I did a sweep of the websites and further analysis and noted the following.

1. There was a lot of overlap between the companies and I suppose that they will now seek to reduce that overlap and standardise the offering or try and keep each operation separate to satisfy the suppliers and keep all the agencies.

2. Interested that they put all these companies together. having worked in the industry the one threat to that is that overseas suppliers get a bit uncomfortable if you have too many competing products within one stable and whilst you can say they are all run independently very often they just look for someone else. Having looked at the offering there is a lot of duplication in the basic beds , tables , and other simple stuff from the catalogues. Not sure that they warrant 4 different identities or whether as yet they have redefined the identities into specific sectors so that they can be more focused.

3. They say they have links to a manufacturer - I presume they are referring to an outside manufacturer other than the their own which I would presume is the GM medical unit. Maybe that is just a throw back statement from prior to acquiring GM. What is interesting is Rapini being distributors for Fallshaw castors who actually promote (what seems to be their own ) Liftmaster's easy steer trolleys on their website and not any of PGC's. Bit of a conflict and I would have thought that Fallshaw was a target given that castors are a life blood of the service environment and a critical service area - In addition Liftmaster looks good and it looks like a logical addition to the stable with its manufacturing capability also looking like a complimentary unit to GM.

4. The big question is whether all these acquisitions will fit and staff will remain - Firsova have you spoken to management recently? The medical supply and tender business is normally a very small and connected group of people. Often its the people that are relied upon to deliver and not what they supply (other than if you have invested in one range often you may not want to change as it creates its own complications. Its critical to know whether they have created their own opposition by loss of key staff. all their documents seem to suggest that this is still early days - perhaps a good sign. On a lighter note Mark Simari pops up as an actor in a desktop research and also suggests he came from the financial services industry before - age looks similar so is he an actor or the CEO or is the CEO just acting?

5. The Brr (only ever) presentation in 2010 suggested they wanted to do $30 million in two years. Its two years and they are way off that - so it does not seem the route originally taken has worked out and they are changing to get there.

6. Management even Chair have skin in game - I personally like that. Too much IMO is made of independence in small companies - You need the guy to be involved not just collect the cheque.

7. Are you not worried about the departure of Timothy Blanche? He seemed to be the special projects and key account manager. that could hurt. He had not as at end august sold his shares but I cannot see him holding if he has gone somewhere else. He is only 46 years old. Needs more research - Does not look like any abnormal selling but maybe thats what is capping the price. No 46 year old that I know of leaves the business and keeps his $500,000 invested unless he is wealthy and has no need to divert this investment IMO. This is my big question and one I would like to resolve before investing a lot into this.

Will stop there as this is what I need to resolve.

have taken a small position.
5.