GEONG International – big cash trouble in little China!
The China based internet software solutions provider issued a trading statement for the nine months ending 31st December 2011 that highlighted the usual concerns.
It’s disappointing to note an apparent stagnation in the business with total revenues for the period marginally lower than in the same period last year at approximately £7.6m, although we do appreciate a changing business mix. As we have commented before, given the other cash flow issues surrounding little Geong we would question the logic of UK investors investing in a China based businesses other than for exceptional top line growth – we could offer a whole basket of UK businesses offering more pedestrian growth with a more reliable cash flow model. The performance related element of the SaaS business…