CONSOLIDATED

PARENT COMPANY

Note

1999

1998

1999

1998

$000s

$000s

$000s

$000s

CASH FLOW FROM OPERATING ACTIVITIES

Cash was provided from:

Interest received

85

776

84

773

Exchange gains on foreign currency deposits

46

183

46

183

Proceeds from debtors

394

7

-

-

Dividends received

9

5

9

5

Sale proceeds from disposal of shares

14

-

14

-

Cash was applied to:

Payments to suppliers

(335)

(274)

(61)

(83)

Payments to employees

(402)

(209)

(89)

(94)

Interest expense

(36)

-

-

-

Exchange losses on foreign currency deposits

(210)

-

(210)

-

Taxation refunds

(1)

-

(1)

-

---------

---------

---------

---------

Net cash flow from operating activities

(436)

488

(208)

784

CASH FLOW FROM INVESTING ACTIVITIES

Cash was applied to:

Sales of fixed assets

4

2

2

2

Purchase of share investments

(433)

(560)

-

-

Sale/(purchase) of subsidiary

9.

1

(28)

-

-

Purchase of fixed assets

-

(2)

-

(1)

Advances to subsidiary

-

-

(514)

(960)

---------

---------

---------

---------

Net cash used in investing activities

(428)

(588)

(512)

(959)

CASH FLOW FROM FINANCING ACTIVITIES

Cash was applied to:

Repurchase of shares

-

(9,995)

-

(9,995)

Loan advances from CES shareholders

69

-

-

-

---------

---------

---------

---------

NET DECREASE IN CASH HELD

(795)

(10,095)

(720)

(10,170)

Opening cash at beginning of year

3,047

13,142

2,972

13,142

---------

---------

---------

---------

CLOSING CASH AT END OF YEAR

$2,252

$3,047

$2,252

$2,972

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=====

=====

=====

Represented by:

Cash at bank

55

79

55

4

Bank call deposits

81

249

81

249

Commercial bills and deposits

-

1,001

-

1,001

Offshore bank deposits

10.

2,116

1,718

2,116

1,718

---------

---------

---------

---------

$2,252

$3,047

$2,252

$2,972

=====

=====

=====

=====

RECONCILIATION OF NET SURPLUS TO CASH FLOWS FROM OPERATING ACTIVITIES

Reported Net SURPLUS after Taxation

(1,980)

(23)

(1,022)

(2,473)

Add non - cash items:

- Depreciation

11

8

-

3

- Loss on disposal of fixed assets

5

1

1

1

- Amortisation of non current assets

494

586

-

-

- Loss on disposal of CES Communications shares

750

-

-

-

- Increase in provisions re subsidiary advances

-

-

782

3,252

---------

---------

---------

---------

1,260

595

783

3,256

Add/(Less) movements in working capital items:

- Receivables, prepayments and taxation

97

(64)

(3)

(6)

- Creditors

40

(10)

16

3

- Inventories & current investments

147

(10)

18

4

---------

---------

---------

---------

284

(84)

31

1

----------

----------

----------

----------

Net Cash Flows from Operating Activities

($436)

$488

($208)

$784

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