Ann: CEO Transition, page-23

Probably worth expanding a little more on this, as this is what the market is fearing imho and feeding into the price.

Last year expenses came in at 64m

This was broken down into rent of 17.5m, wages of 33.35m and other of 13m.

We know that wages are rising 4%+ (retail award's, EBA's etc) + with the store expansions there is ~5% growth in total expenses as well. So could easily go from 64m to 70m.

So overall if revenue per store falls and expenses rise (freight, wages etc) then the total margin is less.

2nd half may well show:

Revenue (60m - assume same as FY22 off the larger store base due to lower LFL sales due to cost of living)
gross margin (at67%) 40m
costs 35m
EBITDA 5m -- but do need to take into account deprecation etc.

so overall the company needs to ensure revenue stays up.