hi wood-duck, the contract CBA had with BMF was very very high...

hi wood-duck, the contract CBA had with BMF was very very high margin, like most "retainer contracts". The major cost for this contract was just the staff expenses ie the "creative people" who come up with the marketing ideas. So unless you start sacking people (which BMF has only now started to do, very reluctantly), the bulk of that $11m is going to hit the bottom line.

The other interesting feature is your assertion of being debt free. Aside from the outstanding $13m in deferred consideration, EGG is also liable for Tranche 3a & 3b of the deferred consideration restructure ( announced 17/8/2010, see section 11.6 of this document). This amounts to $82m and is payable upon certain hurdles being achieved. As such, while contingent in nature, there is still a further $82m in unsecured debt sitting in front of equity shareholders, which needs to be considered in the calculations of EGG's gearing levels.

Thanks CmonCDR, that rundown of contract wins is very helpful.