Ann: Quarterly Activity Report and Appendix 4C, page-2

Cash receipts have finally turned around after 5 quarters of decline and indications are that this should continue going forward including the next quarter which has historically been soft.

Improvements in margins are being achieved which will be further reflected next quarter.

FR sock marketing has begun - and looks like they have some potential customers, who are currently undertaking production testing, but no indication of when sales may begin.

Initial TMSS sales delayed by up to 6 months which is not good - we may see some receipts in the last quarter of the 2020/21 year.

Production work (I guess with ICL) has begun, but no real indications of when sales thru this channel will begin.

Pine Belt hampered by further delays and also it looks like inconsistencies of application in production work which is a worry.

Their sales focus remains locked on bedding.

Overall I suspect receipts will continue to improve over the 3 remaining quarters of this year, but I fear no big jumps in revenue with TMSS delayed and FR sock still in testing mode (but hopefully sales will start perhaps 2H). The inconsistency issues with Pine Belt with production work is a worry and I worry this may apply with FR work being undertaken with ICL and other clothing / uniform work.

OveralI I suspect a solid 2020/21 year with revenue up, although perhaps nothing too dramatic.

I brought a small parcel this week, but feel no real rush to add to it at this stage.

All the above is just my humble opinion