For instance, with redundancy / termination payments / staff...

For instance, with redundancy / termination payments / staff restructuring you could smooth these based on historical expenditure,

@Vesupria,

Yes, that's precisely what I sought to do in presenting the historical data.

The conclusion is that the company sometimes incurs termination payments in its normal course of business. And sometimes it doesn't.

And when it does, the extent to which it occurs varies by a few orders of magnitude.

In the last result, it occurred at a level not seen before, well above any notionally smoothed, or averaged, amount.

On that basis I tend to not incorporate into my modelling a perpetual cost element of ~$1.5m pa for termination payments.

Just as I don't factor in a sundry credits of $1.2m pa for each year going forward because it happened in the most recent reported result.

That feels like a reasonable combination of things to do.


In forming an assessment of the company's future earnings and cash flow streams, do you assume that there will be $1.5m of recurrent termination expenses?