EstarOnline Ltd

[percy]

How do I order my coffee and cake?

Was that with large cake madam?

[SCOTTY]

I expect some estar's customers are very pleased to have their web business in tact.Be a god send for Ballantynes,whose Christchurch store is in the cordoned off area.

Hi there Percy.

Interesting that you should mention Ballantynes as it is a EstarOnline client. Interestingly, the new MD at Ballantynes was the former CEO of another successful EstarOnline client - EziBuy, probably the most successful online retailer in Australasia.

It will be interesting to see how she developes the online business.

We live in interesting times!

Cheers

[SCOTTY]

I have received the full year result to 31st March 2011. Even though they have had to abandon their Christchurch CBD premises due to earthquake damage, they have still managed to grow the business and remain profitable. Under the circumstances - an excellent result. To quote from the Chairman's letter:

"The underlying performance of the business continues to improve. Our customer base continues to grow, and their individual investment and spend in this area continues to grow. Revenues improved $535,063 from the previous year with cost of sales up by only $295,419. Gross profit at $910,423, ($670,779 for the previous year), is the best indicator of the underlying financial improvement occurring in the business.

Final reported post tax profit of $245,860 is $105,308 less than previous year. So, despite the top line improvement our bottom line result is less. All this slippage can be explained by responses that the company has had to make in order to remain a going concern. Also, under accounting rules we have had to reflect that our office fit out at Hereford Street has been written down. The fact is that whilst we believe all of this is recoverable in addition some of the other monies spent will also be recoverable under insurance cannot be reflected in this period of reported result.

The most direct impact that this had on shareholders, is that unfortunately we are not able to announce and pay a dividend with this year's result. Whilst the underlying performance would support a dividend, the cash out lay to manage the earthquake events has meant it would be imprudent to pay a dividend.

Australia continues to be our market of focus. The success of clients like Country Road and JB HiFi, (to name two), and our role in their success is something that we can build on. We have recently made a senior appointment to head up our office, based in Melbourne. In addition we are investigating with a number of counterparts the possibility of partnerships in Australia that will give us distribution capability. We of course will keep you updated on any material outcomes that may arise from these discussions."

[percy]

Yes,I agree with you SCOTTY,a very pleasing result.Pleased they had good retained earnings to tide them over.I see the balance sheet, and cash position are in very good shape.

[SCOTTY]

Yes,I agree with you SCOTTY,a very pleasing result.Pleased they had good retained earnings to tide them over.I see the balance sheet, and cash position are in very good shape.

Yes. $515,586 on interest bearing deposit with BNZ plus substancial insurance money still to come.

They are also looking for staff:

- Software Developers X 2
- Business Services - Customer Support
- Technical Support Specialists
- Web Designer
- Business Analyst
- Executive Assistant

All these jobs are advertised on their site; www.estaronline.com

[SCOTTY]

The Christchurch earthquakes can't stop EstarOnline from going from strength to strength. A 1c fully imputed divi on the way next week. Business continues to grow in excess of 20% p.a. with more staff being employed and an office opened in Melbourne. Still only trading at 8c!!

[percy]

The Christchurch earthquakes can't stop EstarOnline from going from strength to strength. A 1c fully imputed divi on the way next week. Business continues to grow in excess of 20% p.a. with more staff being employed and an office opened in Melbourne. Still only trading at 8c!!

Just keeps on impressing me.A good well run business, in the right sector ,at the right time, doing the right things .And as always a fully imputed divie is the icing on the cake.!!!! Very nice.

[SCOTTY]

See on the company web page today www.estaronline.com that there are 500,000 shares for sale @10c. At 10c the capital value would be just over $8m. They are now ex the 1c fully imputed divi.

Cheers

[sailor1]

I have had shares in this little beauty since listing and have acquired most of my holding on an average down basis,
including stumping up I think it was 2 cents some years ago when they were desperate. My average cost is now around
6 cents per share and I've recovered a good % of this via the two divvies, so still holding, watching closely and with high
hopes that this may be the ten bagger, or greater that will finally secure my superannuation. Go Estar

[percy]

Hello sailor1.
Good to know you are on board.Estar have recently increased staff numbers to 43,so I think your superannuation is "well positioned" for further growth.