Global Marine Energy.

Morning all! Happy christmas.
Not attending AGM due to relatives. Also looks to be a formality.

As stated before results, wanted 2-3m t/o at least to be in position to get 6m/7m magic number for profit at year end - GME have delivered more.

Expected loss with clear evidence this would turn into a profit by fye. Loss only £500k - expected £1m. More 'delivered' sales in first half than in whole of last year.

Also gross profit full year 2005 of £1.42m has been exceeded by HALF-year gross profit of £1.52m. i.e. without operating costs, restructure etc.

Wanted some sign placing is the last. Didn't get that, BUT now have overdraft/additional financing with the best (2nd best?) bank in Britain. If they manage the profit side properly, any debt can be paid down from cashflow, so that would be ok if needed, and allows for larger orders should the opportunity arise. They still have unused Cornell facility.

Wanted to see some sign orders still increasing - they are. Personally I don't believe either of the analysts are right on t/over forecasts. They seem out of touch to me if quoting £13m t/over. This is next to impossible on current figures for 2006 as even Patriot can only show orders of £2.76m in 60 days and this is 'orders won' NOT 'delivered business'. To get close, GME need to deliver whole o/s order book in next 6 months! Impossible.

Now have some idea of 'run rate' which is about £500k 'delivered sales' (as opposed to won sales) per month averaged over 18 months, at a cost of about £227k pm (which included rationalisation/restructure etc) - i.e. net difference of approx £273k pm averaged over 18 months. If pace is maintained, could see 2m profit 2006.

In a nutshell, very happy with these results. So long as costs are controlled and productivity increases, they're good enough IMO to see a profit in 2006 rather than 2007.