Ann: Half Yearly Report and Accounts, page-124

My reading of the accounts and reason for sell off is it was basically "as good as it gets"

The bad debts percentage was written off as a financial impairment from a much weaker quarter against increased revenue from a seasonally higher quarter.

if they were written off as a comparison on the revenue on which they were incurred against tge percentage would be much higher.

As I speculated numerous times the customer growth would peak and roll over as you simply cannot charge such exorbitant fees without customer attrition.

Ms Scott has done a great job of reducing expenses but their is little scope to reduce further and going into seasonally weaker quarters together with further customer attrition the bad debt write off's from this stronger quarter against falling revenues will be a pretty big number.

Given the explosion in interest expense evidenced yoy and this is yet to be fully recognised after renegotiation of debt this number will be huge as a percentage of income.

They cannot make an operating profit without the Convertible note adjustments despite Ms Scott's admirable efforts in a very strong revenue quarter and given the oncoming headwinds above the next report will be pretty dismal.