COO half year results and trading volumes, page-16

Totally appreciate your cynicism spider! Most of us have been confused and somewhat disappointed that management has had this substantial cash holding doing very little for many years. Perhaps it is just being over cautious waiting for the perfect compatible opportunity that will bring immediate returns, however this could mean they miss the boat.

In the mean time they have concentrated on their core business by investing in new improved products and services. In addition they have been improving internal business systems that create operational efficiencies. From there they now have the ability to implement cost structures that are more in balance with income streams and thus return the company to acceptable profitability. Given the changes to their marketplace (group consolidation and reduction customer base) this is an appropriate strategy to safeguard the businesses viability.

Management has decided not to invest in their payment services business which has also seen a substantial income decline. Lack of innovation here has see others penetrate their market but have they tried hard enough to find new markets (e.g. payment service for college fees, sports club subscriptions, fund raising, etc - all happening in recent years). With this side of the business declining it is taking away diversification of income streams.

While I firstly favour consolidation by M & A in the pharmacy software arena and the synergy here, perhaps opportunity exists for Corum to invest in or develop a partnerships outside of pharmacy and payment software and services. By all means, if possible stay in healthcare software and services where there is obviously growth potential but don't discount other areas, as a well run profitable business is what it is.

The Half Yearly is coming soon and will be definitive as to how well and timely the current strategy is working. It would be nice to see the decline in revenues halted, a significant reduction in expenses and improved profitability. If this occurs we should see the return to paying a dividend.... the cash is available.