Interesting Points - Pro-Forma Numbers

The raising presentation, showing Pro-Forma numbers including PEP falling to $50m, is for 1H23, not Jan-Feb or June.


Equity is apparently $9m higher after Jan-Feb (below Balance sheet). Maybe the raising pro-forma could only use audited numbers, so used the previous HY.

The above apparently shows PEP falling to $50m, but 'as at Dec 2022', in a hypothetical situation where the placement funds had already been received.

Anything that happens between 31 Dec and 30 June will change these figures 'as at 30 June 2023'. Jan-Feb already showed profit that does not show in the pro-forma. So I think there's potential for any profits in those 6 months to cause PEP to come in below $50m.




So the pro-forma above, the $9m higher equity should mean either $9m higher assets, or lower Corporate Facility (PEP) / Other Liabilities. I can't tell where it went exactly, but it would be nice if that meant PEP not being $50m, but $41m in a hypothetical Jan-Feb pro-forma. Then if the 4 months to June were profitable too, as was 1H23 and Jan-Feb, then it should mean the numbers coming in quite a lot better than the pro-forma showed for 31 Dec 2022, at 30 June 2023 once the raising is done and dusted.

It seemed like the pro-forma and even this slide had to ignore the Jan-Feb changes, and it's likely only showing hypothetical changes as at 31 Dec 2022.





I find extrapolating the Jan-Feb $7m out by straight line to June to be a bit crazy (I'm assuming it to be on the unsustainable side, eg. why were payments to staff so low in the cash flow statement?), so I'll not call it $14m profit for Mar-Jun, but I'll call it $6m instead. So potentially PEP showing $35m balance by end-June ($9m increased equity Jan-Feb + $6m more for the following 4 months) (if there's no other payments taking precedence). And then the savings of 15.7% IT on $15m reduction = extra $2.35m PA savings.

But I could not find the PEP balance as at end-Feb. So I couldn't tell where the profit was being directed to.

See the purple notes.

Receivablesebt ratio improved by 0.5%, meaning by $6m or so, so I think the profit was put towards reducing either Funding Facilities or PEP, but I can't tell which.

I think that means that over Jan-Feb, we've accumulated a 0.5% increased margin of safety relative to the receivables. Eg. enough to protect us from bad debts coming in 0.5% higher than anticipated, compared to where we were 2 months ago. But the thing I'm hoping for, but can't see, is that the $6m is going towards PEP - decreasing our interest significantly.


This is getting interesting. A quarterly trading update would be very interesting, to infer the Mar performance.

And of note and value to us: us retail holders are getting a 2 month free option from the SPP. The placement people already paid up at $0.08. We get 2 months to decide. Only problem with that being, potential for scale-backs. Eg. if it goes to $0.20, everybody jumps in. If it goes to $0.06, no need to pay up...