Ann: Full Year 2021 Results Presentation, page-7

@Just_a_guy ,

Normalising each half-year for the long list of NRIs (which are becoming more recurring than not over time for EAS, but that's a separate matter) the second-half did look to me to be disconcertingly weak:

Madamswer's "Normalised" EBITA ($m)
DH19 = 2.3
JH20 = 3.4
DH20 = 3.5 (+55% on pcp)
JH20: 2.9 (-16% o pcp)


But I think I have cracked the code (at least part of the code).

The answer lies in (contextually highly material) movements in the provisions for ASIC advisor levies due to a combination of change in the number of advisors as well as the big increase in the per advisory levy, effective Feb 2021.

From the notes to the Dec 20 accounts:




As can been seen, there was a ~$220k easing in the provision in DH20, followed by a ~$1m increase (from $0.698m @ 31 Dec 20, to $1.72m @ 30 June 20) in JH21:




Now I'm not sure to what extent the company recognises revenue recovery, if at all, nor the timing of such revenue recognition but what I think I can say - without being prescriptive - is that, while the DH20 appears to have been modestly overstated, the underlying JH21 result looks like it is a lot stronger than suggested by the $2.9m figure I derived.

No matter how it is sliced, a $1m movement in this provision in the half is highly material in the context of a $2.9m half-year operating profit number.

.