re: Ann: Preliminary Final Report Year Ended... Highlights:- Tax...

re: Ann: Preliminary Final Report Year Ended... Highlights:

- Tax office resolved.

- The greatest importance to shareholders now must be the company’s position and operating performance going forward. Management and the Board have taken steps to refocus the business on a commercial core and to drive the business to operational profitability. The attached Update to Shareholders, (previous announcement) describes significant reductions in ongoing costs, the material reductions in debt and interest expense, and other actions taken by management to achieve this objective. We believe that the company is now suitably positioned to deliver a positive commercial result.

The directors believe that in light of the significant reduction of debt through the settlement of the Lehman Brothers transaction and negotiation of an agreement with the ATO, the resultant reductions in interest expense, the significant operating expense reductions achieved in 2008, the removal and restructuring of non-performing businesses and the ongoing business plans now in place, the company will most likely generate positive cash flow and continue as a going concern.
I know it sounds a little repetitive but lets hope that this time they are right.

- Closing down bad none performing businesses of China (Terrible decision to purchase from the outset)/New Zealand/Hong Kong.

- Thailand is performing very well.

Lowlights:

- Lehmans still has not been settled which is a little concerning.

Given that last year Management stated that they can get upto the minute financial information on how the company is running, it would be good to see them release this quarters 4C statement, as they did one time last year for the above reason, a week yearly and cashflow positive too.

It would also be good to see the directors stop taking a few hundred thousand out of the company this quarter.

I have some confidence given the enthusiasm of people like Richard Lord for the industry, if all Hyro's employees are like this they will make it through this year, bad economy or not, just takes the right people to be on the bus and in the right seats.