Ann: Chief Executive Officer , page-12

Which products are do you think are old, and which ones don't you think will be profitable? What are the authorities view on the barriers?

I don't think we need any sales growth to make money, just consistency. When any business has a massive percentage drop in sales, it's profit will come under extreme pressure because all of it's non product costs are geared for higher sales. These non product costs take awhile to readjust to the new sales level and the type of business will dictate whether it can be done at all. (iron ore mining for example can only be profitable on massive scales)
If you compare 2003 reports to 2011 reports you will notice that in 2003 srh did 12.9m sales for a 1.8m npat where as in 2011 they did 45.6m sales and 750k npat. The gross profit margin however has barely changed from 34.6% in 2003 to 35.5% in 2011. This indicates to me that margins are not as under pressure as what some would imagine, and why would they be? Nobody is going take the responsibility of going for the cheap option when it comes to road safety, especially when it is not even your money like the majority or srh customers. I really think as soon as any clarity comes to the forward sales forecast that the profits will flow through.

As for timing, there is probably no rush, but I am looking forward to the 1st half results albeit not as much as before this announcement. Very interested to get some more info on those company rumors you have heard thou, as I mentioned before I definitely don't have an ear on the ground and can only rely on reports.

(insert the usual disclaimers here)