clarification of cash balance from enero

Firstly, I take back any harsh words. Enero have prompty returned my email.

My Email requested clarification as to the cash balance based on the AGM. In particular clarification of the following statement

“we extinguished the debt at December 2011 and have built a cash surplus of approximately $7.5 million”.

The repsonse by Enero:

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Dear XXXXX,

Happy to provide clarification.

The $7.5m was disclosed as ‘surplus’ cash not ‘total’ cash.

As disclosed in the FY12 full year results the total cash balance was $21.5m. Since 30 June 2012 the group has:

• Sold BWM for $7.5m and received those proceeds
• Paid deferred consideration liabilities of around $12m

Assuming no other changes to working capital this would equate to a cash balance of $17m now. Our general operating working capital requirements across all our businesses is b/w $8m and $10m at any one point in time and therefore our ‘surplus’ cash is approximately $7.5m.

Hopefully that clarifies for you but more than happy to have a phone call to discuss.