Bell Potter Accumulation, page-2

Thanks Stotes - great research.

I've just done a rough back-of-the-envelope calculation on what I think we will see in the quarterly.

38 communities under management (billing) - recent market update
* 0.5 GW per community average consumption - investor presentation

= 19GW under management

* $220k revenue per GW per annum - investor presentation
= $4.18M annual revenue
/ 4 - for one quarter

= $1.045 M revenue for Q1 2016.

It could be slightly higher given that Queensland has a summer peak (ie. more consumption in summer months with air conditioning etc).

Also, the company's stated target retail margin is around 18%.

So would expect around $180k of pure margin - but whether this is taken as profit would depend on whether there are other, non retailing related costs.

Note also that the $4M annual revenue is ours for the next 5 years + given contract length and there is still substantial customer load under contract but not yet under management that will continue to come online. This will be a huge cash generator.