Ann: Quarterly Report & Appendix 4C - March 2014 , page-3

re: Ann: Quarterly Report & Appendix 4C - Mar... Here are my thoughts -

Quarterly revenue at $3.1m with 53% gross profit margin (as per FY2013 result) implies average quarterly inventory will be around $1.45m. The actual quarterly inventory cashflow was $1.7m, which implies an extra $250K was spent on stocking up.

Staff costs of $630K this quarter are largely in line with quarterly staff costs up until June 30 2013. Between July 1 and December 31 2013 staff numbers fell in preparation for the merger. It looks like post-merger the staff costs are broadly the same as the old (pre-June 2013) entity.

Clements gets a rare mention, which implies no buyer has been found and will continue being part of MLA going forward.

New organisational structure with COO at the top (instead of CEO) indicates the board is playing a more active role in the running of the company than normal.

No mention of a profit or trading profitably, which implies MLA won’t be profitable this FY.