Dear All,The reason why this report was issued on friday...

Dear All,

The reason why this report was issued on friday afternoon was to give people time to digest it to see the potential. Rather then looking at a summary and not understanding where the loss came from.

EBIT excluding the company they off loaded (cabrini) was 28million and 18 million including Cabrini. The loss was a one off 23 million from the sale of a Cabrini their big loss making company.

The 88% in brackets on page 1 of 22 is a mistake as revenue is up. If you do not consider Cabrini that they have just sold then income is up 101% If you look on page 2 of 22

The three important takes aways are:

The 70 million operating expenses jumps out. This is where the potential lies. this cost is a result of 46 companies working independently. When they unify the companies, warehouses and sales software into one and off load all the dead wood middle management then this cost will drastically reduce and directly increase profits.

Additionally the gross profit margins of 40% are incredible

Single sales software system. A procurement officer wants to call one company and place and order for everything. this will even mean they will buy low cost items at a higher cost than he can get else where so they can bundle them all in with the high cost items in one purchase / delivery.

If this plunges on monday because people dont look into the details then this will be a good buying opportunity.