Since my last address to shareholders at the Annual General meeting in November 2002 Jumbo because one of the first in a group of similar sized start-up technology companies that listed in 1999/2000 to post a profitable results. this was an important milestone because it demonstrates that our business model works and our focus on profitability is real. More importantly however, we now have a platform from which we can continue to build the company.
In response to questions form shareholders, I will now provide further information about the company.
CAPITAL RAISING POLICY
The directors follow a cautious and tight capital raising policy to ensure that shares are only issued when absolutely necessary or when a significant opportunity exists to benefit all shareholders.
The proposed convertible note may or may not be used depending on the circumstances. It may be replaced with an alternate method to raise capital or simple not be used at all. If within the 3 months following this meeting a significant opportunity does not eventuate, the directors intent to let the convertible note authority to lapse.
THE JUMBO CORE BUSINESS
The operating company for the Jumbo core business (Benon Technologies Pty Ltd) has continued to provide the dominant contribution to the group. Now that Benon is fully owned by Jumbo Corporation, its results in future years will be able to be fully consolidated.
Numerous promotions are continually coordinated to drive sale of our various online products. I will briefly discuss 2 recent promotions to give shareholders an insight into our activities.
1. Pc-cillin 2003 Antivirus Software - In conjunction with Manaccom our software supply partner, monthly promotions are emailed to registers users of the software with offers to extend their licenses via convenient and fully automated online payments, software downloads and license numbers issues via Jumbo's software web site - www.rocketfuel.com. A new web site has also been constructed at www.viruscheck.com.au that provides free online computer virus checks. Visitors to the site are then encouraged to purchase PC-cillin to prevent future virus infections.
2. PublishPDF Software - PublishPDF is a new software title that Jumbo has acquired the worldwide rights to sell online. The software enables businesses to create popular PDF files. The web site www.publishpdf.com is being built by Jumbo to market the product online around the world.
The start-up subsidiary companies that cause the bulk of the cash burn in previous years have improved considerably in 2003. Online Cimputing Australia Pty Ltd and Dealer Dan Pty Ltd performed far better in 2003 with growing sales on lower expenses.
In April 2003 Jumbo announced the acquisition of an interest in Global Approach Pty Ltd that owns the licenses online casino at www.musichallcaisno.com. Initial promotions have been successful with early turnovers exceeding budgets. The results for the first 3 months of operations will be reviewed next month. These results will indicate if the operations are on track to reach A$1,650,000 EBITDA for the full year ending 30 June 2004, of which Jumbo would be entitled to approximately 20% if no further investments were made.
THE VISION AHEAD
The primary focus will continue to be profitability and growth through expansion of current businesses and cautious investment in other opportunities, The current negative market sentiment towards listed tech companies means that we have to take a cautious approach to share related transactions, however by continuing to focus on profitability and growth I believe the market will eventually respond positively.
For further enquiries, please contact:
Mike Veverka, CEO
Ph: (07) 3831 3705
FX: (07) 3831 9720