Before restructuring costs of $3,441,000. Looks like we are on...

Before restructuring costs of $3,441,000. Looks like we are on target for a $3.5mill net profit for 2009.

For the quarter HYO was Cashflow +ve $688,000, noting there was an increase in staffing costs for the quarter to the tune of around $2mill which I figure are redundancy costs being so high. Marketing cost increase of $304,000.

So on the move at a steady pace, I not expecting the share price to take off, but a steady rise......

• Net cash flow from operations for the half year of $4 million

• Q1 08 operating cashflow benefited from cyclical higher 4Q 07 billings

• Q2 08 cash collections sustained due to increases in revenue and improved cash control

•Reduction in operating cash flow in 2Q 08 from 1Q 08 due mainly to ATO payments, restructure costs and reduction of creditor balances

•Cash at the end of the quarter of $4.8 million

•Subsequent to half year end, the company has retired its Convertible Note (subject to shareholder approval) and thus removed most of the group debt

•First half revenue of $36.4 million represent a 48% increase over first half 2007 reported revenues

•Q208 EBITDA of $970,000 before restructuring and other one-off costs reflect business profitability turnaround

•One-offs in 1H 08 relate mainly to restructure, M&A activity, balance sheet and prior period costs whilst 1H 07 relate to software capitalisation that was reversed at 2007 year end

•Planned group cost base reduction of $6 million annually now fully implemented

•Established new sales office in Perth, giving Hyro full national coverage and local sales support for Hyro’s clients in Western Australia

•Restructured its China( including Hong Kong) business and sold an unprofitable business unit

•Subsequent to the period, Hyro appointed a permanent Chief Financial Officer