I read it , this has already been flagged by the company but still interesting and makes one wonder how such a over supply of inventory of little value occurred:
"A review of Advanced Braking Technology’s Thailand operation was completed in July 2014 and a decision was taken and announced to the market on 28 July 2014, to contract out our manufacturing requirements to full service third party providers. Our own assembly and manufacturing activities will therefore ceased by the end of September 2014 and the operation will be totally closed by 30 November 2014. Negotiations with potential providers in Asia and Australia are well advanced. This action will address the need for improved quality and improved capital management. The review of the Thailand operation identified a significant amount of inventory of little or no value in the current market. The review also identified the opportunity to convert truck brake inventory into trailer brake inventory forDIRECTORS’ REPORT ADVANCED BRAKING TECHNOLOGY LTD - ANNUAL REPORT 2014 13 Advanced Braking Technology Ltd further trials and early market support. Accordingly, Advanced Braking Technology brought to account a one-time inventory write-down of $0.801 million for the financial year 2013/14."
The fall in revenue for the year is disturbing to , but why are directors buying script?
ABV Price at posting:
0.7¢ Sentiment: None Disclosure: Not Held
