Ann: Halo Records Strong First Half Growth, page-7

The overall business is improving and looks a lot better than last report.

positive attributes include
1. lots of room for improvement in sales with big leads from China and OZ
2. local market is reopening and this should help the health supplements market which is the one CEO is focusing on from his personal interest
3. The protein bar plant upgrade is finished, the large expense is finished for the next quarter
4. Operating margins is about 10% exclusive of head office costs, is improving from last report. With expected large increased sale, we should expect net profit next year if sale momentum is kept up.
5. With low share price, there will be less options issued next 12 months, better for us as shareholders. Thanks VC!

Negative side
Quite obvious is the overhang from VC who is determined to undermine any positive new, this is going to be sometime until someone decided to take a big bite at KTD.
2. The profit margin is still quite low, the CEO has not shown much distinctive managerial skills at this moment other than over exaggerating the superficial growth of the business. (However he has tone down a little on this report) This gives us little room for error with low profit Ebita should economic turns.
3 We are in “debt”!