Ann: Appendix 4E and Annual Report, page-5

This seems interesting to me but seems not to be harming the company currently.

The bank borrowings is classified as a current liability consistent with the current assets classification of the receivable against which it is secured. Facility is $6m (2016: $4m) but limited to 70% of energy customer invoices outstanding. The Group has a 33% equity interest in Long Tail Property Ltd. The associate is not material to the Group. CovaU Pty Limitd, a wholly owned subsidiary of the Company, is in breach of one of its financial covenants (need to maintain capital ratio not less than 30%) with Westpac Banking Corporation and is currently working to resolve this breach. The carrying value of the facility subject to this breach is the full value of the short term borrowings disclosed in the attached financial statements. Identification of this breach did not result in reclassification of the short term loans, which were already classified as current borrowings under the terms of the facility agreement. At the date of this report, Westpac has not taken any action with respect to the breach that CovaU has reported to them.

Also page 56 they seem to have taken some upside protection with hedges for an increase in electricity prices as sensitivities are 1mil increase in profit for a 10% decrease in energy prices but only 110k decrease in profit for 10% increase in the electricity price

gas is 630k either direction


Until energy prices stabilise earnings look like they will be volatile for TPC but interesting prospect