Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-6

guys,

just some surface level observations:

i'm guessing $197mm in turnover for this year and 8% ebitda margin for 15.7mm ebitda.
could be 15-17mm vs a $59mm loan facility.. gives a debt/ebitda of 3.7x..which is a little high.. i wonder what the covenant is on the loan?
i note it is only drawn to $50mm at the moment. but my guess is that they pay BBSW+500 which would be around 8.5% or $4.25mm per year in interest.

So i have trouble seeing these guys generating much positive cashflow, and worry that their leverage ratio is too high..
their q/q growth rate has slowed massively and they have added to their employee expenses..

I really don't know if they can grow fast enough to cover their debt costs, and worry they might have to do a cap raise..

Anyway I was in this thing around 11 cents, when I thought they could grow at 20% but have stopped out now here at 6..
i hate selling on new lows, but its a money management thing.

any thoughts welcome.