In the Announcement of 18/08/16,the Company reported an $8.8M profit.
Well done!
However, the Company qualified this $8.8m profit with the added"before overheads".
I am not clear of exactly what constitutes overheads and whether they represent overheads just for this financial year or for the life of the project.
Do salaries, rent, IT and communication costs, rates on yet to be leased or sold commercial space, legal fees,ongoing advertising etc., constitute overheads, and have these overheads been finalised?
Do overheads generally represent only a small impediment on the real profit, or can they be substantial?
Without an accountant's understanding of the potential costs of overheads I find it hard to assess just how much the Company's bottom line will be boosted by this outcome.
A profit of $8.8 M on an investment of about $25M looks like a very good return.
TIA Price at posting:
88.0¢ Sentiment: None Disclosure: Not Held
