Ann: Leadership Update, page-47

Good explanation @Hawkes07.

Additionally there is also potential for a lower current cash balance compared to 30 June given Mark only mentioned in July a renewed focus on reaching cashflow break-even with no announced timetable or targeted cost savings. There are possible redundancy costs relating to reduction in headcount (again with no longer-term cost savings given) and slowing sales in the past couple of quarters given tightening conditions for consumers globally and especially in UK/Europe. We will now need to absorb the cost of the new CEO in addition to the ongoing cost of Mark's excessive cash rem, undoing the savings from cutting 3-4 lower level staff.

The only bright spot I can see on sales would be if we have picked up the run-rate of sales in USD but we won't know that for a few days until the Q1 update is out. Past quarterly updates have focussed on revenue and revenue growth (the good news), with little quantitative info on costs (the bad news), so even the quarterly update may not provide enough financial detail to work out where we stand.

Even though the new CEO will have been in the seat for only a short time, this will be the first real test since the annual report for the Board to improve the company's financial disclosure.