Ann: Appendix 4E and Annual Report to Shareholders, page-26

Have some answers here:

- Increase in WIP are a result of consolidating Withnalls, which trades some working capital for better margins on their work. In other words, they have more leeway for clients in their payment terms which deal with larger more illiquid assets, but charge a premium for doing so. As a result they carry some WIP and don't bill it out at month end like the existing family law firms in the group.

- The barristers fees (also an impact from Withnalls) are increased on larger cases which require more forensic work etc, so i view that as a bit of a business mix impact from consolidation rather than an organic increase in costs.

- They claim that during the year they lost 7 lawyers and hired 6, probably paying the same amount to 6 as they were 7 if that's the case due. But also, only lost 1 in the past 3 months so perhaps less of an issue for the current half. Perhaps it could be a seasonal thing... would be interested to see if there is any research on that.

- owner operator deals to supplement existing 100% model, partners that own minority pay a 10% central cost recovery fee to the parent (much the same as KPG charging partners 9%). This is taken from consolidated revenue so basically partner pays 10% x ownership % x revenue.

- management emphasised not diluting shareholders, and paying bonuses in cash where they can.