Revenue around expected, but cost inflation (namely wages - GM% down to 40.6% from 44.4%) due to a continued tight labour market causing lawyers to offer candidates more to hire. Impact across the board, I'm an accountant and got a 20%+ payrise YoY, shouldn't be all that surprised haha.
Nonetheless, expecting cautious price adjustments over time to bake in cost inflation. Herein lies the power of pricing power, which AFL does not seem to have (definitely doesn't). But even their cost leadership is lacking currently. Hopefully with their new operating model they can reduce employee churn over time.
On another note, Withnnalls has been a wildly successful growing acquisition, having hit 3.5m run-rate whereby it was initially announced as having 2.5m. AFL Bought for 900m (half cash, half scrip) so ends up being ~0.5x revenue. Doesn't take much of a profit margin for that to be a very good deal.
Continue to hold, today is a very good buying opportunity (as it always has been lmao)
Ann: Appendix 4E and Annual Report to Shareholders, page-3
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| Open | High | Low | Value | Volume |
| 15.0¢ | 15.5¢ | 15.0¢ | $6.255K | 41.36K |
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| No. | Vol. | Price($) |
|---|---|---|
| 1 | 719 | 15.0¢ |
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| Price($) | Vol. | No. |
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| 15.5¢ | 200000 | 1 |
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