Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-5

Comparing on a PCP basis looks good - increased revenue, increased EBITDA. EBITDA a bit down on what they would have normally got due to contract start delays.

For those inexperienced in IT services, what that means is that they would have hired some extra staff based on a new contract won, but the client delayed the start so that means you are paying some staff, but they are not yet earning. Ideally you try to match them as close as possible, however (particularly when there is a shortage of good people), you can’t always achieve that. They have stated that those contracts have now started.

cash outflow due to settling some deferred consideration. The 9 million dollars of creditors from the previous quarter makes the figures look like there is no profit happening, but it’s a cashflow report not a Profit and Loss.

The company continues to execute well - next big hurdle is the half year when we get to see what the profit actually is.