It's mostly a timing thing. H1, only included marginal cost's relating to new facilities. H2 will be the first period to include the full 6 months worth. (though for S2 the full facility costs will show up from FY19H2)
The new facilities will have an initial negative effect on Operating Leverage. (cost's rising faster than revenue as a result of high initial fixed costs). i.e. they are cashflow negative.
Keep in mind that's 9 MW's in 6 months of 'Contracted Utilitisation'. Which is a fundamentally different thing from billed utilisation. It will likely be realised over year's.
We also don't know the nature of the 9MW's (I'd speculate a big component is from whitespace which is lumpy and probably has different revenue considerations).
Will be interesting to see what Project Revenue is for S1 next period as well as increases in recurring revenue without a comparative change in the Billing Utilisation rate.
NXT Price at posting:
$6.71 Sentiment: Hold Disclosure: Held
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