high dive with acute degree of difficulty, page-12

Onerous lease provisions, by their very nature, are one-off in nature and will, rightly, be viewed as such by both management and by equity market practitioners.

As for higher ongoing lease costs, I had accounted for these given they are likely to be quite small. $69m of property sold, of which not all will be re-occupied by PMP, but will be sublet, but at a 7% cap rate this will add $5m to rent costs, bearing in mind that some of this impost is already reflected in the FY13 numbers, since Wacol ($8m) settled in January 2013, and Moorebank sale ($30m) settled in March 2013. The incremental lease expense uplift in FY14 is therefore to be about $3 or $4m.

This is dwarfed by the $32.5 million of benefits I listed in my earlier post.