Can you explain the fall in Cash flow released today?If the...

Can you explain the fall in Cash flow released today?

If the reduced receipts figure is a result of holiday craziness - can we expect this to be amended in the half year report? i.e. was the outstanding monies paid in January?

Secondly - what happened with the cost of sales figure? It has increased from 61% of receipts from last quarter to 84% this quarter. Do you expect this continue heading into June?



Hi Dan,

Your correct , as 80% plus of our revenue comes from SME and is voice related traffic ,both revenue and collections decrease dramatically in December ,January and also the easter period (at easter it seems most of Australia takes leave) as a guide these months have a seasonality factor of December .7 January .5 and easter .85.

Collections again as a result of our SME focus and majority of buisness being non direct debit (DSL unit is only unit on all DD) falls in December but is recovered in January.

Due to the seasonality factor, cost's are a fixed unit as a percentage of sales so costs as a percentage of sales increase in this quarter and move back to the annual mean over the next quarter's.

Regards

Colin J Marland
Director People Telecom