Ann: Half Yearly Report and Accounts, page-3

@Tails
This is a standard comment from the auditors on a company that is sailing close to the edge (racking up losses and cash outflows with seemingly little in the way of assets to bail out the business).

Hugely speculative now and more so with this side investment in Feb........relying on startup businesses that may or may not make it.....in my view the risk has gone up significantly given they have not quite managed to get their core business to a profitable steady state.

What is really perplexing is that on 32m of electricity sales in 1H22, they only made a 10.7% gross margin and 19.2% margin after factoring in the derivative gain.....the unhedged gross margin is much less than the previous 4 half year periods, and the post deriv margin is also lower than the last 2 half year periods. Perhaps after that significant gain last year, they did not fully hedge their requirements, but even more concerning is the cash burn (another 4m after the ~7m last year excluding +/-deposit to AEMO & Hedging).