Caketin closer to 46% - specialised product that requires a lever of service and support. the after sales service component is large and the product can be simple or specialised.
As I understand it they have been improving sourcing and have improved some of their own products those products are included in the mix. Not sure but I dont think they ever capitalised the R&D towards those just started selling them and expensed the development.
Its also a very fragmented industry so smaller companies and overheads are a larger percentage of costs. Specialised selling teams.
L&R would be a different game and I expect they will reduce the GP mix ad probably have a significant impact - The concern goes away as they get more consumable sales and not the lumpy capex style.
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