Cybit - partner of choice for forward thinking companies

Looks to me as if they have not "own booked" ANY sales during the first 6 months!!!

Do the calcs on the costs of factoring (£686k at 15% = £4.5mm: add say £400k of t/over from 2004 interims and you get the £4.9mm). You get to the same if you do calcs based on the cost of sales and gross margin.

So, they have built in the operating costs and now need to generate a certain amount of sales to avoid posting awful results (again). So the policy will have been to "own lease" sales over (say) £4.5mm in a 6 month period. i.e. they have not generated enough sales to do own book leasing in 2005 interims.

The same will be the case for 2nd half of the year. I reckon they will "own book" once they have enough sales to post a profit for the year. i.e. anything over £5mm will be own booked.

So any thought of a profit over £200k or so is nuts!

My bottom line is that CYH is still in the "problem child" category despite what the management say in the interim report. Hence the SP will remain in the 50p area for another 6 months. Sorry to all the bulls.