Ann: Preliminary Final Report, page-6

Hi littlecorn

At a cursory glance:
1) CPT have chopped $2.1M from employee costs with some executives taking a 15% hit to their salaries, this excludes bonuses. This is a risk to employee morale as the staff remaining have higher workloads and sales executives having to work harder to retain contracts.
2) $900k profit is still pretty fragile business. Needs to be a lot larger to get you out of trouble. The first half results will be interesting, but there are still other risks due to COVID and reduction in margins for all contractors at the moment.
3) Services performed on critical business systems still saw a reduction of revenues (see the following paragraph). Revenue growth was not as much as expected.

From page 7, it would be interesting to find out who the two largest contracts are and what they are worth. They expire December 2020 and if they need to be renewed the current climate is likely to be super competitive price wise, lower revenue.

Best of Luck
Lost