Ann: FY19 Performance Summary, page-5

No worries.

Re CAPEX (and depreciation of spend) there’s quite a few moving parts.
- The R&D work for HALO etc appears to be largely finished.
- Depreciation/amortisation schedules were steepened last year (good conservative accounting as per @1_Day_Man ‘s observation)
- New “annuity” contracts need CAPEX ... so if it increases quickly, it’d be a good thing (the result of winning a lot of annuity work). Eg. The large CAPEX spend in FY18 due to winning large contract in NSW.
- With the steeper depreciation rates, rollover annuity contracts should be more profitable (as CAPEX fully depreciated and asset retirement charges should be pushed out). That’ll depend on the rollover of course as the rollover may involve an upgrade of equipment.

So ... that’s a bunch of excuses for me to avoid answering your question (because it’s hard). But with the biggest chunks coming from new annuity type contracts, I’m thinking about it as more of a COGS type spending. And cash/debt position is pretty healthy so they have head room for this expansion IMO.

Does that help at all? Or am I muddying the waters more?