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Dec.Quarter Result Misinterpreted ?

  1. THEPENNYGURU

    236 Posts.

    Is it a negative net operating cash flow of 972,000 or an underlying top result $528,000 Positive ?

    Item 1.7 - Other Pre-payment of goods for re-sale $1,500,000 has caught investors off guard I believe, and as it can be confusing, should have had a clarification note attached.

    Why would you do this ?
    Two schools of thought.
    1) a supplier was going out of business or had surplus stock & offered it up at a discount too good not to take up.
    2) creditors are asking for upfront payment.

    I went back over the 2014 accounts.

    i) the company has significantly increased its product portfolio offering to its traditional markets and also started selling its products to new markets. In addition, the Company switched to in-house production, to enable cost savings and improved quality control.

    ii) On 8 July 2014, the Company’s subsidiary, ORH Distribution Pty Ltd was granted with a Motor Vehicle Dealer licence ( stock ? )

    iii) I also liked the steep increase in repayment of borrowings at 1.18 in the current 4c

    iv) and possibly most noticeable given how far this business has turned around............

    Mr. Martino is a Chartered Accountant and an experienced director of ASX listed companies. Previously CEO of Deloitte Touch Tohmatsu in Australia, he has significant experience in the development of "micro-cap" companies.

    Mr Martino is a key player in the re-birth of a broad grouping of ASX companies including Cokal Limited, Pan Asia Corporation Limited, Clean Global Energy Limited (renamed Citation Resources Ltd) and NuEnergy Capital Limited. He has a strong reputation in China, with a lengthy track record of operating in Papua New Guinea (PNG) and Indonesia, where he has successfully closed key energy and resources deals with key local players. He has a proven track record in capital raisings across a range of markets.


    TPG is an eternal optimist ( do your own homework ) however it would appear we are poised for a significant March quarter result.

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