Ann: Trading Update for FY2022 and FY2023, page-13

Overheads increased - it's the only way.

There's an offsetting line item for changes in inventory, so any additional COGS on inventory not used isn't expensed yet. As someone said earlier, inventory is an asset.

I suspect overheads increases would have been offset by larger gross profit, hence the mention of timing.


That said, this investment (for me, anyway) is not about increased GP from manufacturing - although that's a nice backup. The bulk of the upside comes from ZOLEO subs, and potentially from additional revenues generated from Certus.

One can estimate (roughly) the profit BCC can make from just the manufacturing business... I suspect the entire market cap would still not suffice if buying that as a separate biz.