Ann: MHI Appendix 4D & Interim Report - 29-Nov-13, page-2

re: Ann: MHI Appendix 4D & Interim Report - 2... My first thoughts:

1. Trading has as expected been even harder this year - profit from continuing operations has gone from $3.5m to $1.1m impacted by lower margins and lower revenue;

2. The loss on the China Christmas Collection came from left field - to be honest i'm not even sure how that was accounted for before this write-down (where was the $1,229k on the balance sheet in the annual report - I assume $921k of it was sitting in the foreign currency reserve and likely to reverse the effect in the P&L so this is less of an issue).

3. I dont mind the big investment in the US factory and plant (if it pays off) however we haven't seen any projections for the revenue / profit / margins on the US footwear division. How do we know what to expect from this division or do we just wait until this time next year when we will have had 6 months of trading. I was hopeing for some commentary on this at some point as it is a reasonable gamble.

4. If the review of textiles finds that they need to move production north then presumably they will sell the Carson factory and the value of that asset becomes even more important (still no word on its value);

5. Working capital seems odd as well and i'm not sure if this is to do with the new factory or if they have taken their eye off the ball for the existing businesses.