Ann: Quarterly Activities and Appendix 4C Cashflow Report-MSG.AX, page-2

What a cracking quarterly! $700k operating cash flows.

A few things to call out:

- growth in revenues with run rate >$20m
- cash at bank of $1.1m
- walked away from acquisition - whilst disappointing nothing has yet to be announced, it shows great discipline for mgt to walk away. This gives me confidence they will make the right acquisitions when presented
- maintained existing clients and won new clients
- sounds like the pipeline is still strong

Things are starting to look good here:

- very cheap @ P/E ratio of 4x and only 3.5x on an ex-cash basis
- share overhang looks to be gone given the break of the technical downtrend on large volume