Investor Relations

Response to ASX Query re Appendix 4C

Back Aug 06, 2001
Part A | Part B

Q MULTIMEDIUM LIMITED                         2001-08-06  ASX-SIGNAL-G

HOMEX - Perth                                                         


Thank you for your letter dated 1 August 2001.

In response to the queries set out in your letter, Q Multimedium
Limited (Company) responds as follows (using your numbering):

1. The Company considers that it will have sufficient cash and
working capital to fund its current and envisaged activities. In
particular the Company has cash, working capital and unused overdraft
facilities totalling $1,330,000 made up as follows:

Cash on hand                        485,000
Positive working capital            545,000
Unused overdraft limit              300,000
                                $ 1,330,000

During the three month period to 30 June 2001 the Company reduced
current liabilities by $680.000. The negative operating cash flow for
the June quarter, including exit costs for the multimedia business
was $408,000. The two ongoing core businesses of Q Multimedium Ltd
are Q Digital and Jumbuck Corporation.

Q Digital produced an operating cash surplus of $513,000 for the year
ended 30 June 2001 and forecasts a positive cash flow for the year
ended 30 June 2002. Jumbuck Corporation, subject to approval at a
general meeting on August 22, will be a 100% owned subsidiary of Q
Multimedium Ltd. The forecast for the three months ended 30 September
indicates an operating cash neutral position for Jumbuck.

2. During the quarter ended 30 June 2001, the Company's revenue from
multimedia was less than anticipated due to the decision to exit
multimedia activities in Singapore and Perth. This decision however
has resulted in Q eliminating an area of historical negative
operating cash flows. 

3. On the 19th June 2001, the company announced its intention to exit
the multimedia markets in Singapore and Perth. This will result in an
approximate write down of $900,000, including goodwill plant and
equipment and employee termination payments. Subsequently on the 3rd
July 2001 the Company announced an estimated financial result for the
year ended 30 June 2001 of a net loss attributable to members of
$4.0M (future income tax benefit has not been taken into account).
This was inclusive of the $900,000 relating to the restructure of the

4. The Company since issuing its prospectus in December 1999 has
changed its strategies and objectives in line with previous
announcements and as stated in the content of this announcement.
These changes were made to protect and grow shareholder wealth and
ensure that the company focused on the two core businesses being Q
Digital and Jumbuck Corporation.

5. The Company confirms that it has continued to comply with the
listing rules and in particular Listing Rule 3.1.

6. The Company complies with Listing Rule 12.2 and has a balance
sheet with sufficient quality to fulfil the company's strategies.

K Stedman