Forum Archive Index - February 2002

["winner69 ." <wwinner69@hotmail.com>]

In these days of uncertainity around the world about the standard of  
financial reporting (that is undermining investor confidence) the RMG 
announcement today leaves a lot to be desired.

Even Phil Boeyen was sucked in by heading up his report 'RMG delivers 
improved half year'

Comparisons between this and the previous half year period used by RMG today 
were in my opinion very misleading. They do paint a pretty rosy picture when 
in fact the opposite is true.

However if you look at the performance of RMG over the last three half year 
periods at a net profit level and exclude tax, one off charges and one off 
profits on asset sales you see a different picture. The items excluded in 
the following numbers are the abnormal restructuring charge of $8.8M in the 
June 2001 period and the reported $3.4M profit on asset sales in the 
December 2001 period.

RMG's underlying performance is then

                          Dec00 HY     Jun01 HY    Dec01 HY
Revenues                   $30.7M       $32.3M      $29.7M
Pre-tax loss exc            $2.9Mloss    $4.1M;oss   $5.5Mloss
abnormals and asset sales

In addition RMG have reported negative operating cash flows of $3.2M in  the 
June 2001 period and $7.5M in the December 2001 period.

In spite Mr Boult's statements and rhetoric surely these numbers are not 
showing a healthy trend - declining revenues and increasing underlying 
losses.

I'll leave it up to you to decide whether RMG is on track or not.

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