Response to ASX Query - Appendix 4C
Document date:
Tue 05 Feb 2002
Published:
Tue 05 Feb 2002 20:32:03
Document No:
210654
Document part:
A
Market Flag:
Y
Classification:
ASPERMONT LIMITED. 2002-02-05 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++
RESPONSE TO ASX QUERY
I refer to your letter of 1 February 2002 which requests responses to
various questions you have after receipt of the Company's Quarterly
Report - Appendix 4C for the period ended 31 December 2001 released
to the Australia Stock Exchange Limited ("ASX") on 22 January 2002
(the "Appendix 4C") and respond as follows:
1) The Company does have sufficient cash to continue to fund its
activities. In the first instance the Company has Cash Reserves of
$148,000 as at 31 December 2001 together with a further $50,000 from
a recent placement. Late December 2001 we subscribed to Resource
Investment Trust plc by way of share placement to the value of
$245,000 (an announcement was made to the market accordingly). These
shares are fully tradable in two months time. Their value is
currently higher than that at subscription.
The cash draw downs in December also consisted of a $292,000 payout
for an interest payment which is in dispute (this payment was
disclosed in the prospectus) and is the subject of appeal. The
Company has been granted a Mareva Injunction on this money and this
will be heard on February 19 2002. Disclosure of this dispute was
made and released to the market in our Annual Return for year ended
30 June 2001 - ITEM 28 "PROCEEDINGS ON BEHALF OF THE COMPANY".
The Company is shortly to announce a date for a General Meeting to
approve a further placement in the sum of 8,200,000 shares. This
should be with the ASX within the next few days. This, together with
the earlier placement of 1,000,000, improves the cash position by a
further $460,000. To date the indication from possible subscribers
has been positive.
2) The Company does not expect to have negative cash flows in the
future unless the Company continues with its development of
additional products for which the market will be advised.
3) As the Company's half yearly report will be released shortly the
market will see that the Company has posted a small profit for the
period. This is in line with the Company's projected budget
formulated at the beginning of the financial year. Traditionally, in
our industry, the December quarter is always low in revenue, however,
the next six months, particularly in Print, should show increased
sales and profit. Our new Internet business (developed as per
prospectus) has been performing well and will shortly break even.
Also, at this traditionally low revenue period, the Company paid out
to its staff all holiday pay accumulated as at 24 December 2001 which
put an extra burden on cash flow in the amount of approximately
$37,000. This practice is not expected to continue and in future
holiday pay will only be paid when it is due.
I believe that the company has complied with Listing Rule 3.1 as it
has made full disclosure of any event or activity during the period
which would have a material effect on the Company's securities
through its announcements and its Annual Report. I do not believe
that any of the above (save for the placements, which were announced)
would require release to the market. The half-yearly report will be
released shortly and that will show the turn-around in the Company's
performance and profit.
In respect of Listing Rule 12.2 the company's current financial
condition is considered sound and there is no reason to believe that
the company will not continue trading in a satisfactory manner.
Current trade debtors are $526,529 and trade creditors $184,428.
There are other assets of approximately $4 million and pre-listing
loans of approximately $1 million, which are currently in dispute.
Should this disputed amount become payable the company is confident
that the necessary funds will be available as and when required
without any impact on the trading position.
If you have any further queries please contact me and I will be happy
to respond.
L Cross
COMPANY SECRETARY
MORE TO FOLLOW