guidance, page-49

Hi APJAPJ, I had the same question when I opened up the half year result.Obviously everyone wants the operating cashflow or net cash flow to be the same as the NPAT.In a real world there are many things that affect the cashflow.In order to get comfort that we had operating cashflow of $137K and a profit of $1.5 million I looked at the chief drivers being Trade receivables and Trade payables.If you take the opening balance on both of these and the closing balance the movement can be added or taken back from operating cashflow.Refer balance sheet the opening balance on trade receivables was $945k and the closing balance was $1538k movement = $593k.The opening balance on trade payables was $1070k and the closing balance was $668k movement $402k.Both of these added back to cashflow therefore $137k + $593k + $402k = $1132k.This gives a comfort for the NPAT.Therefore I would expect that in the second half they tighten up and collect the receivables and slow down the payables and operating cashflow improves.As an example the DTL cashflow I was looking at shows the movement way.
The forecast I was referring was NPAT $1.9 - $2.1million which looks cheap at 7c.Overall they said on 27/9 they would make $1.5 - $1.7million and it was trading at 7c now they are forecasting $1.9 - $2.1 million and we are still trading at 7c.
Let me know if this makes sense.