abc learning interim net profit up 62 percent, page-26

.......thus just like all the property trusts etc, the MOST IMPORTANT THING IS NET 'CASH-FLOW' DERIVED FROM NORMAL OPERATIONS E.G THE FEES that parents pay minus the day to day expenses.

If this cash-flow (which shouldnt include 'license revenues' ) will be enough to maintain the daily operations of the biz (and pay a divvy), then the biz is fine!

id imagine that eventually the cashflows will get better and better as time goes by as theyll reflect the new centres contributions to cash flow. Improvement of operating margins is a KEY thing for management in the US esp!

im going to look at the net OPERATING cash flows (ex investing and financing which reflect high debt and capital flows) and relate this to license revenue and how license revenue fits into net operating cash flow and get back to you............