Article in the Gold Coast Weekend Bulletin 15-16 March,2008by...

Article in the Gold Coast Weekend Bulletin 15-16 March,2008
by Nick Nichols business editor.

"Cumminscorp has narrowed its losses over the last six months of 2007, thanks to the cashflow provided by manufacturing rain-water tanks.

The aquaculture technology company, which continues to operate under a deed of arrangement with its creditors, posted a net loss $693,476 in the December half, down from a $3.3 million loss a year earlier.

The result was built on a 334 per cent surge in revenue to $2.37 million.

"The company's sole source of revenue continues to be from the sale of rain-water tanks," said the company in its financial report.

"These sales have generated both gross margin and valuable cashflow for the business, allowing it to continue to invest in its research and development program of aquaculture and water remediation technologies."

Cumminscorp has stirred up Asian interest in its technology, hosting two Chinese delegations over the past month.

Representatives from Hydro Solutions Asia and China's Ministry of Water visited the company's Gaven factory this week to inspect the company's water-remediation and fish-farming technology.

Cumminscorp's research and development costs jumped to $267,952 in the December half, up from $45,713 a year earlier. The company had $373,730 in cash at the end of December and total current assets of $1.74 million.

Total current liabilities stood at $2.6 million. Total net assets were $522,622.

Shareholders last month were told the company expected to break even this financial year.

The company is expected to make its final payment to creditors by January next year before its shares are relisted."


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