Ann: Half Year Investor Presentation, page-11

Wow, that is astounding that a broker can put out such dribble (assuming that is what they have said). It just goes to show what superficial analysis goes on in the broker community. Just researching back two years to the FY16 accounts show that when MNF acquired TNZI they reported operating cashflow of $41.5m and a corresponding increase in Payables of $43.9m due to supplier novations. i.e The transfer of supplier contractual obligations on acquisition. We have merely seen in 1H2018. an unwinding of the effect of the acquisition on the Balance Sheet. Two important things to note are that net working capital has not changed materially (about $3m), and the current ratio is still well above 1.

As far as a 'stretched Balance Sheet', that really is an embarrassing statement for someone to make. Interest cover is over 100 x, and there is NO net debt, the company has net cash of over $11m! If the finances of MNF are stretched, heaven help 90% of ASX companies that actually do have debt.

I do agree the company should have explained this in their presentation.