Ann: Letter to Shareholders - Upcoming EGM, page-127

Well I have reread the half yearly and to me the wording is very different in the half yearly compared to the newsletter. The half yearly discussed the issues based on price and quality of result they are having in acquiring NEW business whereas the newsletter clearly stated that they have now EXPERIENCED margin pressure with their current clients. Here is the exact wording:

We have experienced margin pressure this last quarter in some of our PCM products which will be reflected in our quarterly report to be released later this month.

I was initially surprised by the response but not anymore. Investors are already very edgy with the historical margin issues that saw them operating clients at a loss, any news of this kind highlighted so harshly was always going to, in hindsight, cause share price pressure. 28c at time of newsletter announcement, 17c today 5 trading days later. It's pretty self-explanatory.