Ann: Quarterly Report and Appendix 4C, page-3

I have an even bigger problem to share with you as long as you accept one assumption:

That is the the Receipts figure is roughly the same as the Revenue figure in the P/L: Being $16,997,062
As they have reduced debtors by $1.9m this may even exceed revenue, however we will use the above number.

Receipts from Customers $16,997,062 (Revenue)

Product manufacturing costs. ($12,852,066) (COGS)

Gross Profit. $4,164,996

Margin Percentage. 24.5%

This however is insufficient to cover:

Staff Costs. (4,319,515) (Exceeds GP)

Admin Costs. (1,133,649)

Total ( 5,453,649)

We are down before any other costs by ( $1,288,168.)

Look at all the other operating costs, depreciation, etc.

I know I have made some assumptions here but I could be pretty sure they would not be too far wrong. Even if they are I have a lot of scope to play with, or more correctly they have a lot of catching up to do. I am not even sure they can see this problem, but they are just kicking the can down the road.