Ann: December 2016 Half Year Accounts, page-13

That margin was the first calc I did when i saw this announcement.

Relatively speaking as percentage of sales
Network costs down 44% to 41.5%
Electricity costs up 28.5% to 34.5%
Other costs of goods up 7.6% to 9.8%.

So are electricity wholesale contracts more expensive then forecast? Was there a spike in prices during this half?

Are the contracts that LPE are signing with customers too 'lean' compared to forecasts?

Are contracts due for a yearly price correction/increase to restore quoted 19% gross margin? Unlikely in this early stage.

This dip in gross margin poses many questions.

Still happy with progress to date but if that margin doesn't sneak back up next half it will take us a little longer to get to where we all want to be...profitability!!!