Salary and employee benefits were 27.9% of gross revenue for Y/E 30/6/14 and assurance, accounting and taxation advice represented 12% of gross revenue.Total admin expenses were 62% of the gross. All excessive and unacceptable in my view.
At least it is an improvement on 2013 figures where total general and administrative expenses were 118% of the gross.
It appears that the Board don't have the capacity, or the will, to reduce these costs so the only way the company is going to turn a profit is by a considerable increase in revenue, and a change of fortune in future drilling programs with no more Defenders, Australia 11s and Gretel 11s.
SSN Price at posting:
2.0¢ Sentiment: Hold Disclosure: Held
