Ann: FY24 Full Year Investor Presentation, page-23

The accounting for short term lease payments is on-going and is not the cause of the reduced profit in this result.

In the Profit and Loss Statement, note that the depreciation amortisation and impairment expense has increased. Note 7 shows $10m as a property and plant & equipment (P & E) impairment and $3.8m as a right of use asset impairment. Note 15 discloses that the impairments were the result of the closure of 17 Glue stores.

Also see Note 41 (events after end of financial year) that the Trybe business has been sold.

As the financial statements have not been prepared on an "underlying" basis, it is not certain what impact the combined Glue and Trybe divestments will have on future sales and profitability (including other write-offs). The Trybe business is said to not be significant and the Glue closures were said to be not sufficiently profitable but we will have to take it on trust that profitability will be enhanced and that there will be no more impairments or write downs as a result.

For me, that means I will not be buying on the dip until certainty is restored. Sentiment unchanged at Hold.