The balance sheet is unaffected by the reduction in staff...

The balance sheet is unaffected by the reduction in staff numbers and movements to Malaysia. These things affect the profit and loss as they are expense related.

The R&D tax rebate is likely to continue as long as the R&D expenditure continues. Australian tax law allows a rebate of 45% of expenditure to any company earning under 20M or revenue annually. So if you are removing this as a one off income then you should also remove the expenses as they are larger than the rebate, and while they remain, so will the rebate.

The Debt of which you are speaking is on the balance sheet, which you also say looks good. all the items in question are listed on the balance sheet under payables, the most current of current liabilities. The disclosure couldn't be clearer. It will manifest in operating cash flows in the future, but the current liabilities show all that needs to be paid out. in this case, if the other payables have been decreased while taking on debt from directors then over time it will flow through positively to operating cash flow as the expenses have been recognised in the P&L.

Any positive impact to operating cash flow from the sale of Rectifier UK will be ongoing. Anything listed in investing cash flows should be examined separately from the operations regardless.

Hope this helps on some items.