Ann: Appendix 4C - quarterly, page-2

Seems very good, if they can generate $450000 in free cash from revenue of $5.7 million. They generated $5 million a quarter in the first half (producing a loss). Given the new contract of $3 million plus other new smaller contracts they should be able to generate at least $5.7 million a quarter next year. If they can generate $1.8 million in free cash annually then the market cap should not be $3 million, though with profits the tax bill would rise. It shows how extra revenue flows into cash flow given head office overheads are fixed.