looking forward, page-14

Hi Newjo - I don't think I am spreading a rumour about TIM being in difficult circumstances, I think it is well known. Their annual report even states they are reporting as a going concern (see note 1). They have gone from a profit of $44m to having a market capitalisation of less than $44m in less than a year. They took a hit on their table grapes, have had a significant increase in their doubtful debt provisions, and are unable to provide any MIS schemes in 2009. These are not signs of healthy company.

I am not predicting their demise but you only have to look at how its shares and other debt instruments are priced that the market recognises it as a distinct possibility.

I for one am hoping that they will pull through and make the transition to a more fully integrated agribusiness company. They have a comparatively bright future if they can make it through 2009 and I think this prospect will keep the banks onside. They do need to reduce their debt reasonably quickly and hopefully their asset sales can go as planned.