Ann: Half Yearly Report and Accounts, page-2

A few movements I observe:

Cash received from customers 43.9 previous 12mo
Cash received from customers 78.0 current

A 77.68% increase, great work

Payments to suppliers and employees (32.9) previous 12mo
Payments to suppliers and employees (64.4) current

A 95.74% increase, partially explainable

Cost of goods sold and wages are both rising, as well as increased sales which would required increased capital spending for units and resources to manage these.

Inflation is around 8% in the US, 7.3% in Australia and 7.2% in NZ. Let us average that at 7.5%.

Increase in cash received if we took a worst case no increase in the sales price of units or ongoing support, I would have expected costs to come in at 60.92 for a neutral result. That leaves a 3.48m cash loss on versus the previous quarter excluding accounts receivable.

Noting that from the Trade and other receivables on the Condensed Consolidated statement of Financial Position confirms Trade and Other Receivables 27.2m previous to 35.6 current (an increase of 8.4m) which if clients were paying on time would see us with cash growth vs the previous quarter of 8.4m.

We have drawn 15.5m on bank loans (repaying 9m but drawing 24.5m).

Both of these suggest to me that we may be investing in either the sales process, or some sort of R&D when looking further down the Condensed consolidated statement of changes in equity and note increased spending on investment in property, plant and equipment and payments for investment in intangible assets.

Spending is fine, but generating real results and monitoring that accounts receivable book is what will matter going ahead to ensure cash incoming is what pays for development and acquisitions, not bank loans.