Ann: Chairman Address for AGM, page-4

not sure I agree there:

it's an inflection curve!
Once a critical point is hit the "fixed" cost part remains the same (plant and machinery,extruders) but the consumables increase with production (but again saving in volume)

What we don't know is the inflection point: at what volume (per sales line) is the shift occuring ?

Do we need to produce 2 billion bags to see 50% GP and 10% NET profit ?

The worry with CNN has always been seeing figures of 4-5 mill per annum in "other expenses"

Again there is documented talk about needing to spend money to increase capacity - we need to know the inflection point when CAPEX will return actual profit - or you are right and CNN just persistently loses money.

But then why would Stellar contemplate a merger (albeit being the party controlling the final balance) ?

A lot of information is needed to gauge this accurately!

Where are the real money spinners ? Need to see this broken down into areas:
China - any profit in that operation and if so at what level of production?
Brazil - with new plant, any profits and at what supply levels ?
Doggie Bags ?
Hygiene products (which I take is the new "hot" market and hence the Stellar deal) ?
Whole Sale seems to have died off..................
Access to plant in Malaysia via Stellar - can that service more Asian countries ?