Yep that’s a fair point, thank you. By all means add the 0.6m...

Yep that’s a fair point, thank you. By all means add the 0.6m back in and don’t give management a free pass (ever).

But why did I set the 0.6m aside? If I’ve got a company of about 200 employees, and staffing is a key risk (p.42 of the last Annual Report), I’m happy to pay 0.6m in bonuses to address that. In other words I’m paying just 2% of FY22 sales (29.9m) or 1.5% of revenue (40.4m). (If evenly split, that comes to a $3000 bonus for each staff member; nice but hardly living lavishly.)

Therefore, any criticism I could have drawn from the 0.6m was not compelling enough for me to discard my thesis. Hence I set that information to one side. But maybe for others that 0.6m is the breaking point?

By all means we should take management to task over their expenditure. However, the 6.5m YOY increase is a more compelling starting point than “you spent over half a million dollars rewarding people for making 30 million dollars in sales!” (The 6.5m increase is also countered by a 6.1m revenue increase - so it comes down to -0.4m ultimately - hence my decision to hang around.)