Ann: 2019 AGM Presentations, page-5

There was a accounting/reporting change in the US that stuffed around with report gross margin %, ie...

Reduction in reported gross margin due to the reclassification of some U.S. based IT related costs from operating costs to cost of sales in thecurrent year. When adjusted for this reclassification, prior year gross profit was $48.8m with a corresponding reduction in operating costs to $36.5m.

Gross margin % still reduced a bit after adjusting for these changes (1.7% diff by my calc’s). But . mix is changing substantially (project vs recurring) and EBITDA margins improved from 11.6% to 13.8% and total EBITDA (after overheads) grew more strongly (up 32%). Hence, I think all seems OK.