"I didn’t want to say it as I’m trying to avoid being a serial...

"I didn’t want to say it as I’m trying to avoid being a serial optimist, but I thought you were being very conservative. Great numbers under the circumstances. "

Not so fast; as always, the devil is in the detail.

It's not what the numbers actually are that counts but how they got there.

And in this case they got there with no help from the Revenue line (it was down 2% in JH vs DH), but by stomping vigorously on the throat of operating expenses (5% down in JH vs DH if we exclude the 1.2m restructuring provision that was raised). And and the cost-out is evident across the board: marketing and selling, product development and sourcing, admin.

And remember that some of those are "good" costs, so...

At first pass, I'd say it was a commendable result that reflects a prompt and aggressive management response to a tough market environment, but we know that cost lemons can only be squeezed so hard.

We now need to see a rebound in demand for their products after the hiatus over the past 6 months as the consumer bunkered down.

It should arrive at some stage in the current financial period because the bulk of GUD's auto products not of a purely discretionary nature; servicing of one's car can be deferred, but not indefinitely.

Management commentary in the result about the outlook for business conditions is somewhat guarded. Appropriately so, I think.
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