Ann: Quarterly Activities Report & Appendix 4C, page-10

I did a quick and dirty analysis to understand how much revenue would LGP needed to reach 6% EBIT (% chosen arbitrarily) for the first 3Q with and without the grants and we are faaaaaaaaaaaaaaaar off the mark.

One of the parameters is that the following lines were included as Overhead (OH): 1.2 a/c/d/e/f, 1.5 and 1.8.
We are also assuming that the OH would stay fixed. This could be debatable as the staff cost can either be a direct or indirect cost depending on positions etc... but in the absence of any other elements or ratio I chose this include it entirely in Overhead.

Do note that it does not have an impact on the final result for the revenue needed to reach a 6% EBIT

	EBIT Including Grants	Current	Revenue to reach 6% EBIT
1	Revenue	$34,101,000.00	$37,449,388.12
2	Direct Cost	$16,116,000.00	$17,698,43520
3	Overhead	$17,490,000.00	$17,490,000.00
4	EBIT	$495,000.00	$2,260,952.91
5	EBIT%	1%	6%
6	Overhead to Revenue %	51%	47%
7
8
9	EBIT Excluding Grants	Current	Revenue to reach 6% EBIT
10	Revenue	$26,978,000.00	$51,037,216.49
11	Direct Cost	$16,116,000.00	$30,488,389.84
12	Overhead	$17,490,000.00	$17,490,000.00
13	EBIT	-$6,628,000.00	$3,058,826.66
14	EBIT%	-25%	6%
15	Overhead to Revenue %	65%	34%