Results are now out for the March 2011 quarter. Although ANNO admits to not be fully clued up on American Accounting Standards, their accounts have a lot of good information in them,
Sales are up 6% on the previous quarter which is somewhat disappointing as production had to be halted in October for essential maintenance. Nevertheless Year to Date Sales are up 35% on the previous year. Admin expenses are likewise up 38% on last year. Shares issued in lieu of payment amounted to almost 70% of costs.
Operational Profits are up 44% on last year. The Share Warranty Liability has increased, but with the present SP about a third of the excise price, these are unlikely to be excised for a while.
Net Working Capital is $-1,531,115, down from $87.609 in the previous quarter. It looks like they are squeezing every cent out of the business to fund construction costs. Trade Creditors are a sixth of what they were in September 2010.
Shares issued are 31.1 million, hardly changed from last year. A good sign that they are doing all they can to avoid dilution.
$1 m has been spent on construction in the last 6 months. $3.5 m is still needed to complete construction of the new production line, unchanged from last quarter. Production has increased by 22% to 50,680, though this would be much higher if we were close to completing construction of the new production line. It is possible that capacity will jump significantly once construction is finished. They are very vague as to when the new production line will be complete, some time in 2011. I would not be surprised if it drifts into 2012.
Which is concerning, as $2.5 m long term loans are due for repayment in 2012 and 2013. I suspect the lenders might be persuaded to roll over their loans for a short period if ANNO is close to attaining full production.
