Ann: Appendix 4C - quarterly, page-6

From memory FZO only had revenue of about 250k....and was not profitable....market cap of 30 million. Lots of blue sky potential factored into SP.

Definitely happy to hold Tesserent.

I remember speaking to Terrain Capital and asked them about Tesserent. One of the directors, who was also a top 20 shareholder, said the key thing about Tesserent was its ability to increase its revenue significantly, without seeing its costs base rise all that much. Ie......whether it has 10, 20 or even 50 million in revenue, its cost base remains about the same. He said this point was made in the prospectus, but hasn't really been emphasised by Tesserent since - in a sense I can understand why - you don't want to brag to the market about your margins / your ability to generate revenue without your costs increasing all that much.

I think the latest 4C shows that Tesserent is able to increase revenue, whilst its costs base remains relatively stable. Once Tesserent becomes profitable, this will become clearer.

In more simple terms, even though Tesserent is not yet profitable, it sells its product on a very very high margin.

With a bit of luck, we will also get a cracker announcement sometime this year about a big deal / client / partnership Tesserent has entered into. FZO seems to make announcements every second week, which is propping the SP up, despite its fundamentals being weak.