Cash flows

 

Net change in cash and cash-equivalents showed a reduction of USD6.9 million in FY2015 compared to an increase of USD7.1 million in FY2014.

 

The profit before tax of USD23.8 million in the current year (2014 loss of USD42.8 million) included USD39.6 million in revenue received in the form of shares and advertising rights (2014 &ndash USD9.3 million) and non-cash based expenses of USD9.3 million (2014&ndash USD46 million). In 2015, the Company&rsquo s increased payables net of increased receivables, freed up cash of USD4.3 million. In 2014, USD2.7 million was absorbed by the net decrease in debtors and creditor balances.

 

During 2015, operating activities used USD2.8 million. This is a USD9.3 million improvement over 2014 where these activities absorbed USD12.1 million.

 

2015 saw the Company invest USD4.5 million, primarily in RSMEG and users and games from Camigo Media. Cash generated by investing activities in the corresponding period last year resulted from the W Corporation bank account balance acquired as part of the RTO process.

2014 cash flow benefitted from the proceeds from issue of shares of USD18.9 million. There was no equivalent contribution required from shareholders in the current year.