cutting position by 50%, page-6

updated announcement from the ASX 'speeding ticket'

Company confirms that it currently expects that its pro forma full year FY2012 NPAT will not vary materially from the bottom of the range of $18 to $20 million


Whats materiality? is it 10%

If so then notice the words 'bottom of the range' which is $16million.

Less 10% is $14.5million odd.

But need to reconstruct for the artificial cost savings:

CEO: 3 months salary and long service leave entitlements forfeited = approximately $550k in 'write backs'

Senior staff: looking at 2010 financial statments which dont break up for senior management, but do provide $3.1million for 'key management personnel including directors' = take out directors pay say half, leaves key personnel say $1.5million. Not sure how to factor in the CEO (is he on the same wicket as other senior management in taking 4 days pay, or is he different since already sacrified 3 months pay), so lets say $1m for senior management at 80% payout = $200k. So about $70k a quarter.

So this brings the artificial cost savings to about $600k.

So we now have a potential underlying profit of around $14million without being outside of materiality.

$14million equals about $0.15c EPS at the bottom end of current guidance.