Ann: Babylon Quarterly Update and Appendix 4C, page-3

Appears to be re-investing profits into business & also to have slowed down H1 FY21 $9,661k relative to $11,395k H2 FY20. Down about 15% HOH.

Q2 FY20 - $5,331k revenue, $3,864k PMOC, $262k loss incl. $235k taxes, $424k plant/equipment expense, $253k cash balance, $1,671k loans & $1,429k additional loan facility.

Q3 FY20 - $3,975k revenue, $2,009k PMOC, $583k profit, $872k plant/equipment expense, $82k cash balance, $4,129k loans & $4,471k additional loan facility.

Q4 FY20 - $7,420k revenue, $5,066k PMOC, $1,158k profit, $1,069k plant/equipment expense, $3,554k cash balance via $3,774k convertible note, $3,144k loans & $5,456k additional loan facility.

Q1 FY21 - $5,193k revenue, $5,168k PMOC, $1,516k loss, $1,238k plant/equipment expense, $398k business expense, $196k cash balance, $4,513k loans & $5,094k additional loan facility. Quarterly report mentions spent additional $1.5M to re-build 5 x large diesel engines for inventory with value in excess of $2M. Appears working on 33% mark up & 25% revenue margin. In leau breaking even spent $1.5M for engines inventory.

Q2 FY21 - $4,468k revenue, $3,852k PMOC, $1,276k loss, $532k plant/equipment expense, $406k business expense, $309k cash balance, $6,652k loans & $2,845k additional loan facility. Quarterly report mentions increased workflow/finished goods & used more cash as they have circa $3.7M WIP + margin to be billed by end of FY21. $3.7M WIP + 33% mark up = $4.93M revenue by end FY21.

Looking at Q2 FY21 $2,139k was borrowed most likely to contribute to WIP of $3.7M. The loss would have been only $338k without the plant/equipment & business expenses.

They seem to balance the figures for tax purposes & it also appears H1 FY21 was slow thus using funds & time to build inventory. Q2 FY21 revenue was down about 14% QOQ & down 16.2% YOY. They used H1 FY21 & H1 FY20 figures to make it look up.

Bit of a concern is revenue falling for past two quarters. Is it due to Covid slowing things down? Mentioned a lot of work in progress so possibly turning around.

I only have a few hundred thousand shares so will hold for time being. Worst case it bottoms at around 2.4c & I got in a lot lower so not concerned.