Ann: Trading Update, Strategic Plan and Outlook, page-55

Irrelevant detail? Are you a little delusional Syd? how can facts and figures, which seemingly point to the quite obvious negative trend be irrelevant? And your point that the SP has doubled since, whilst valid (I note it has come off a bit since posting at 37.5), doesn't mention the fact it was coming off 16c at which point the company was priced for failure pre write down of goodwill again. Just on goodwill, do we know what makes up goodwill in services company? It is the ability of your IGU (Income Generating Unit) to produce, i.e. to generate revenue for you. It is representative of the body of engineers & consultants that over the years have built up a wealth of experience and can use that going forward to both bid competitively and to deliver on projects thus maintaining a healthy margin. So the write to goodwill is the bean counters (irrelevant twats) telling you that they don't believe you can generate the revenue you desire. Case in point below and all figures drawn from the EOFY reports.. Now we've already heard that forecast rev for 2018 will be roughly the same as 2017, say circa $81-2m give or take. So what does that tell us? It tells us that unless they have done something really drastic then I'm not sure where any profits will come from. Even if you cut away the $10m in expected savings for this year you are still only going to break even at best. For the last two reporting years it has cost money to generate revenue, to the tune of $8m in 2016 (onerous lease aside as a 1 off) and $11m in 2017. You knock $10m off that and you are still under water. Actually looking at those figures I'd even suggest that your best option might be to stop BD altogether as the return garnered from the $14m spend doesn't quite justify the outlay from where I sit?. In fact BD actually increased as a % of revenue in 2017 despite falling from the previous year's total spend. If you wanted to be ruthless I'd be letting the good Dame know to be looking hard in that area, seeing as how one now expects to see the "other expense" bucket trimmed by $10m
Cheers' 8

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7
1	000's	Diff 17/16 as % of Rev	Diff 17/16		2017		2016
2	Revenue		-25%		81,063		108,187
3	Cost of sales	-4%	-28%		52,624		73,520
4
5	Gross profit	9%	-18%		28,439		34,667
6
7	Other income		-84%		323		2,001
8
9	BD expense	12%	-16%		6,179		7,370
10	Other Expense?	21%	-9%		34,020		37,476
11
12	Sub Total (Neg)				(-11,437)		(-8,178)
13	Onerous lease benefit/(expense)				668		(-4,200)
14	Result from operating activities				(-10,769)		(-12,378)
15
16	Savings expected 2018				10,500