Cryosite to post record profit

Cryosite is set to post a record net profit for the half year to December.

Chairman, Bryan Dulhunty, told a questioner at today's AGM at CTE HQ in South Granville, NSW that a $1m legal settlement received on September 27 would be accounted for as a profit.

However he noted that the company was seeking advice on whether the item was taxable.

He declined to identify the source of the windfall, saying the company was subject to a 20pp confidentiality agreement.

While Dulhunty won't identify the legal firm involved, it would be logical for a firm subject to the type of remedial action launched by Crysotie to seek the help of its professional indemnity insurer.

The settlement deal was negotiated by CTE director Nicola Swift.

Bryan Dulhunty confirmed that the settlement hoisted cash backing to 10.6c a share.

While CTE is now a "cash box" takeover target, the group still has negative net tangible asset backing.

Directors are unlikely to resume paying dividend until positive NTA is restored. This could take time, possibly years.

Meantime, the group scored positive cash flow of $37k in the four months to October after booking legal settlement costs of $60k and capital expenditure of $30k.

Finally, one of the eight attendees at the AGM asked director and chief shareholder Andrew Kroger, whether he intended to buy more shares following his recent move to outlay $28,500 on a 500k parcel at 5.7c.

London-based Kroger indicated he's prepared to continue hoovering shares where appropriate.