Ann: Appendix 4C - quarterly, page-6

Agree with the above. Analysis separately posted to the INTERESTING ARTICLE thread. Refer Post #:34652722

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6
0	Item	Forecast JunQ	JunQ actual	Variance $	SepQ F/cast	Vary on JunQ Act
1	Product manufacturing and operating costs	4.177M	4.650M	473K	3.371M	-1.279M
2	Advertising and marketing	10K	11K	1K	12K	+1K
3	Leased assets	4K	4K	0	4K	0
4	Staff costs	897K	907K	10K	982K	+75K
5	Administration and corporate costs	270K	291K	21K	314K	+23K
6	Other	113K	107K (net) – gross = 111K	-6K	112K	+5K
7	Total	5.471M	5.970M	499K	4.795M	-1.175M

This is not pointing to any type of strong product or customer launch during the SepQ. But, even if so, the staffing cost increase of $75K points to a $300K annualised figure (including super), suggesting therefore a maximum of 4 new staff at AWE. Perhaps however +6 /7 if junior staff have been recruited or staff are on board at lower wages (mind you, also assuming nil CPI /EBA changes).

If though CPI /EBA changes factored in, then the actual new $ spend is likely c$200K, suggesting then upwards of +3 new staff (+5 maximum at the junior /lower end).

None of this underpins /supports a new product launch of anything big, significant or ground swelling which, in terms of the future aspirated add on (ie: +$30M over 4 years which, if equally split = $7.5Mpa or +35% on the final customer receipts result for F2108.

Based on the current SepQ projections, this is seeming rather less (as opposed to more) likely.

Overall, therefore, not a good CF result, at all, with the cash bleed now accelerating (and especially so in admin & corporate – now up to $314K in the SepQ and accelerating YoY).