Ann: NRW Half Year Results Announcement, page-10

When I initially skimmed through the Presentation, I was surprised to see an expense called Plant and Equipments Costs. One would expect Plant and Equipments Costs to be posted to the Balance Sheet, and expensed over time via Depreciation. I looked at the Presentation more carefully this evening, and these words caught my attention, “Future dividend payments until early 2025 are expected to be unfranked as the Group continues to utilise the ATO's temporary full expensing allowance.”

That suggests to me that some investments in capital goods were expensed, rather than capitalised, and the effect would be to lower EBITDA, EBIT and NPAT, and, of course, lower the net value of assets held. That could explain the increase in Plant and Equipments Costs. The numbers are:

----------------------------------------- H1FY23-----------H1FY22
Plant and equipment costs --- (118,528) ---------- (87,167)
Depreciation and amortisation (61,092) ---------- (64,052)

Any views on this?