company response

Here is the response from Neil LeFebvre in cut and paste - in the entirety.

Hi Neil

Further to our conversation, I wanted to draw everyone's attention to the FACTS in the CRE annual report.

The Auditors statement says: "Without qualifying our opinion, we draw attention to Note 3 in the financial report which indicates that the consolidated entity incurred a net loss of $51,107,000 and experienced net operating cash outflows of 53,901,000 during the year ended 30 June 2011. These conditions, along with the other matters as set forth in Note 3, indicate the existence of a material uncertainty which may cast significant doubt about the ability of the consolidated entity (note; this being Crescent) and the company to continue as going concerns and therefore, the consolidated entity and company may be unable to realise their assets and extinguish their liabilities in the normal course of business and at the amounts stated in the financial report."

As you would be aware, this commentary relates to the last financial year for Crescent which ended 30 June 2011.

It is retrospective on Crescent's year and does not make any commentary looking forward.

At the point of the Bidders statement (issued 29 June 2011) it reports Crescent was at a $37m loss in May 2011. Needless to say, the accountants have taken the opportunity to maximise write downs etc in the report.

It is important for investors to understand that this commentary does not give consideration to the $13m in loans now extended by Focus to Crescent and the operational turnaround now in progress through Focus' management direction as the majority shareholder of Crescent.

Focus is, as reported on Friday, a profitable, rapidly expanding business that is channelling its profits back into expanding its operations.

The Crescent asset package is fantastic. The operations are delivering a significant turnaround. Collectively, the businesses will deliver significant production growth in calendar 2012 to the benefit of all shareholders.

I think your earlier post was fantastic in pulling people back to the facts.

Best regards Neil

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OK there it is - not to the ASX as the company does not deem the article worthy of a formal response.

I look forward patiently to some reporting from the company in the near future and thank posters for requesting this - and for FML / Neil LeFebvre for providing a prompt concise response.

At your service, my warmest regards to all,
DYOR&DD, never panic and don't believe what you read in the newspapers (unless I write it LOL - just kidding).

CW