Ann: Preliminary Final Report, page-37

My current thinking on this is that it is rather like a rescue dog that has been so thrashed by its previous owners so much that it’s now just curled up in a ball under the house hoping not to be hit again
So much time has been wasted by current management trying to clean up the mess of the past that the eye has been off sales in resources. And just when they thought they had smartly pivoted towards aged care, along comes COVID, just to add another later of negativity to sentiment.
Anyway, the prelims gave me reason for hope. The underlying numbers actually look ok once the restructuring costs and impairments were taken out of the equation. They are running $20 mill of recurring revenue at 41% GP with $2.5 mill in the bank. The key will be costs excluding COG which they have to post in the Sept quarterly ( if their PR guy sees this, please get them to bring it out early ie don’t wait until the last day of Oct). If these costs are less than $2 mill (I’d really like them to be closer to $1mill to be honest which is in line with what management told us in March they would be) then it’s game on, because then we are on track for a $4 mill plus EBITDA for the year.