Seems to me that given the accounting treatment now calls for...

Seems to me that given the accounting treatment now calls for revenue to be recognised only on delivery to customer (as opposed to previously being able to just book it on a purchase order), that almost everything at the moment being produced since last month will most likely fall into next quarter and financial year’s result.

All the expenses however are being booked now, so it is really skewing the FY19 operating profit result I think.

Wouldn’t be surprised to see them match the FY19 full year profit result in the first quarter of FY20 given we will see all this revenue flow with the costs already incurred and obvious massive sales improvements.

It’s a little hard to tell the full impact of the increased sales momentum without all the context but the auditor recommending writing on the full outstanding amount of tax assets suggests significant momentum improvement from the original auditor recommendation.

This also helps as next year there will be no tax asset write on’s to lift the net result - which will mean Geoff’s net profit targets for future options eligibility becomes more difficult ongoing - obviously they are confident that they can exceed those targets without them going forward.

I also think they will want to be able to continue a healthy reported net profit % growth rate which should be possible even with writing on $6m in NTA this year and $0 next year.

Seems clever - not suggesting they have orchestrated carrying over revenue/profit to next period but I think it works in everyone’s favour how it appears to be playing out. Just a nice trap for people who don’t understand the business to get caught in. Shareholders will be having a big laugh at them over the next several months.