Ann: Full Year Statutory Accounts, page-13

It helps to understand why a company chooses to issue equity to raise capital. If TNT could fund it's expansion from retained earnings or borrowings, why would they sell equity? Given that they had a need for capital, it's not surprising they spent a chunk of it. This leads directly to a short term P&L loss. Imagine if they had just sat on the money. They would have an anemic profit with little upside.

The real question is: did they spend the money wisely? Or did they blow it all on acquisitions and fancy offices? Will it generate future earnings? I believe that there are goods signs. Revenue is up, although not strongly yet. Costs are contained.

Other issues are more concerning. The international agreements that the Chairman mentioned appear to be low or zero revenue. The deal with a Telstra franchisee appears ad hoc, at best. These issues are addressable, but the company desperately needs someone who understands how to create a product.

Unfortunately, too much was made of Tesserent's profitable P&L prior to floating. I feel this misled some investors. But burning cash right now is not necessarily a bad sign.