Again, no surprises in this report and the main thing with this one is to look forward to the next half annual.
Don't have time to respond in great detail but had to address your comments at least briefly:
1.yes, still a loss but
a) much (35%) smaller than in previous 6 months while revenue being up 15% (which is not small given macro/construction business issues etc.)
b) this half yearly was skewed to the first quarter and the second quarter was much better and in fact cash flow positive (see below; the data in the report you are referring to was essentially known to us in Jan 2004 due to the column on the right summarising the relevant 6 months); so why do you say they need a CR is not clear to me? What will instead likely happen is that they will pay off the $250k remainder of loan
2. no more loan will save more than $84k p.a. in finance charges
3. staff cost have in fact come in lower than I expected (based in the quarterlies) and were lower in Q2 than in Q1, so again, good trend
