Ann: Half Yearly Report and Accounts, page-12

Fancypants have you read the latest earnings report ? Interested on your take per below given you said above you expect to see quarter on quarter cost reductions and increase to business - the report indicates the opposite to this.

A few years in IT may as well be a life time. It seems like they are trying to play a game of race to the bottom which they will lose as they don't have the scale.

You say you use their services, that's great. Do you have a view on below please ?

A couple of interesting points from latest earnings report.

1. With 2.8million in cash, but only earning $60K what am I missing? Interest on this amount from any major is ~5%
2. Why are they servicing debt @ $120K per year with 2.8million in cash?
3. The 1.1million writedown in Internet 2.0 is not explained - is there more to come, how did this happen, why did HFY not liquidate earlier ?
4. PG 39 Revenue is 19Million, Expenses 25Million - how exactly are you going to close a 6Million Gap in 12 months ?
5. Pg 42 Receipts from customers is 22Million, Payment to suppliers is 24Million, 2Million Gap here ?
6. Pg 46 Managed services accounts for 11Million in revenue and is flagged as the Service group that is focused on, that's still leave 5Million voice and data and 2million mobility, presumably these will both decline with the Optus segmentation now gone? What is the plan to take Managed Services from 11Million to 15/20million as required ? How are you going to service the increase in Managed Services without adding staff ? Presumably both increase in tandem

A lot of this report just doesn't add up.