Ok, no problem. Growth is the real issue here anyway, we can...

Ok, no problem. Growth is the real issue here anyway, we can restrict discussions to that.

Let's talk about growth or the complete lack thereof. To my illiterate mind this is where the problem is and indeed where the focus needs to be for ENG from this point on.

Given that they hold their cards very close to their chest it is unlikely that you will receive an adequate explanation of their plans to deal with growth. Perhaps something in the Chairmans address?

If they do not post a significant jump in growth in FY10 you will be looking at a similar result to FY09, June 2010 will be like groundhog day.

In order to avoid a repeat in FY10 of the $7M loss incurred in FY09 they will need to post revenue of around $34M in FY10 which is a required 70% growth rate against FY09 growth rate of just 2% & 4% in FY08. This of course assumes that margin and expenses stay about the same and expenses only rise to cover increased revenue.

There is a rumour floating around that ENG will dismantle the current in-house backend and purchase VOIP & IP backend from a wholesaler. I would imagine that this will result is a decreased margin overall. Of course expenses will then also fall.

Growth of this magnitude for ENG is a very tough ask, I would say impossible with current management, they are clearly account maintainance orientated not sales orientated.

Seems like you will indeed be having groundhog day in June 2010. Expect another cap raise or rights issue in the next 6 months to cover FY10 probable loss of another $7M.