Ann: Appendix 4C - quarterly , page-10

Guys, I'm not as negative about this 4C as everyone else seems to be.

Tes, Receipts form customers is $14.8M, but that does not include the $6.9M received from the 'sale' of RECs. If this is added in, revenue is $21.7M, which is greater than the Other Working Capital of $17M. IMO this is a totally valid approach and CBD could have accounted for it this way.

RECs are like cash, but in a different currency. However, the fed gov has guarranteed a set price to redeem these, with the catch that sellers have to wait about (from memory) 18 months to get their $Aus s. CBD is just speeding up the process, no doubt for a fee.

If the approach used in the first parragraph is applied to the Net Operating Profit, the result is not -$7.5M, but -$0.6M - by far the best result so far. True, I would like to see the minus sign gone altogether, but an improvement is an improvement, and CBD has been improving quarter after quarter.

What is of concern is the cash position at qtr end of just $2.7M. CBD will soon need borrowing (bad), further convertible note diltion of shares (bad) or a share issue (not sure). That minus sign must dissapear. Also, as bvw asks - how many RECs do they have in kitty? Why not tell us?

Looking forward to the 1/2 yr accounts. Some of these questions MAY be answered.