Ann: Investor Update and Strategic Outlook Presentation, page-5

Why would they avoid talking about when they expect to break even and leave out the net loss altogether? One cannot just present the bits that are profitable and hide all the spendings that caused a net loss. I see in one of the graphs using vague terminology to obfuscate the loss.



They should key the green bit as "Net loss attributed to members" as other reputable businesses do in their reports. As they lost 2 millions in 1st half of FY19, they would still lose about 1.5 millions in 2nd half. if they continue with the strategies of setting up more stores across Australia and spent nearly 5 millions more in investment, they would blow nearly all of the cash reserve by end of FY20. This is why the funds have been selling around 20c - 25c to get out. I had to take a loss by selling all at 20.5c recently. Perhaps I will slowly buy back if it gets under 18c. I think they should focus on online and better execution rather than building more stores. The outlay of the stores is too large for the yearly profit to help recoup the investment.