Last quarter’s reports and performance announcements have once again spawned a batch of “please explains” from the Australian Stock Exchange.
Last quarter’s reports and performance announcements have once again spawned a batch of “please explains” from the Australian Stock Exchange.
Notices have been sent to medical, media and financial services companies, Global Doctor Limited, Plexus International Limited and RMG Limited, respectively.
The ASX queried Global Doctor’s ability to fund its activities throughout this quarter after noting March quarter net negative operating cash flows of $541,000, customer receipts of $468,000 and cash on hand of $517,000.
Global Doctor’s reply to the ASX included a cash deficit of $178,703 for April, but positive and increasing forecasts through to December, December’s being $1,351,866.
The company, however, qualified its predictions, noting Global Doctor was a “start-up” business with little on which to base projections other than “estimates, judgement and specific assumptions”. Global Doctor quoted medical evacuation cases as an uncertainty affecting cash flow projections, saying these, if awarded, generated “relatively high revenue and net cash flow”.
Plexus International also received a “please explain” regarding its March quarter cash statements and an earlier March 26 announcement. The ASX questioned Plexus International’s ability to operate past another two quarters if it kept spending at the rate it did in the March quarter, and requested expected cashflows for this next quarter, together with ratification of figures forecast in the March 26 announcement.
On May 1, the ASX requested clarification of a same-day RMG announcement, whereby the ASX believed the company was expecting to record a financial year loss between $4.35 million and $4.85 million. The ASX also pointed out RMG revenues were quite different from those suggested by the company in February and queried the length of time the RMG board had known of the company’s position.
RMG confirmed the possible size of the loss. It also told the ASX March revenue was affected by systems migration problems, predicted April revenue would be better, and said the company had investigated the March results during one week in April, and immediately released a statement on the company’s trading position following verification of the unaudited management accounts.
RMG announced the resignation of its chief executive officer on May 3 and three days later, 17.6 per cent stakeholder Cullen Investments announced, while it retained confidence in RMG’s executive chairman Jim Boult, it was disappointed with RMG’s performance and would seek board representation.
