Ann: Major New Contracts and Retail Sector Expansion, page-10

As another uncertainty on margins there are expenses in being ASX listed, but as a potential offset they say in the latest release that the merger has generated cost savings.

The $14.2 million revenue for 2015-16 related to contracts in place and the NPAT $1.92 million was the incentivised target which surely must have assumed some growth in the business. Why provide them with incentives just to deliver on existing contracts? I agree just using the 2 numbers above implies a NPAT margin of 13.5%, but I feel it is saver to assume that 10% is more likely to be the ongoing NPAT margin and achieving the NPAT aim implies higher revenue this year. The 10% is consistent with the margin shown in the presentation for the 2 previous years, though I am sure there will be some "one off" adjustments every year.

Thanks again for sharing your calculations.