Solid announcement. I was hopeful of a slight improvement on...

Solid announcement.

I was hopeful of a slight improvement on March quarter performance in terms of trading but none the less, paying the earn out out of free cash flow was the important one for me.

In 8 months as a combined group, the company has been able to spin off $6.8m of free cash flow whilst continuing to expand the business. I think that's a great sign. At $6.8m free cash flow we are looking at a MCAP to FCF ratio of 4.2. Personally that is compelling.

With short term debt commitments sorted, the company can now increase its focus on using its free cash flow and increased working capital capacity to grow its top line and further pay down its debt.

Over the next 6 months I expect management to crank up the growth of track to warrant the extension of the ex-owners consultancy fees as well as the 15% interest on their cash they are receiving for another year (which is a home run for them considering rates globally). So far it has proven a very good deal for the ex-vendors. Now its time for that to translate into a good deal for shareholders who supported the business in purchasing the business at 25c.

GLAH