"This has resulted in a larger cost base over the last two...

"This has resulted in a larger cost base over the last two quarters, although the Company is able to leverage our Australian production operations to deliver a higher profit margin. US income is now being generated and will be captured in FY18 reporting" ...........

If only the Preliminary Final Report had contained the above statement now found in today's announcement to the ASX, under
"Big Un Limited Announce U.S. Update Over US$6m Contracts Signed As Targeted Expansion Into USA Gets Underway", some of our fellow investors might not sold their shares so soon.

The above goes a long way to explain the dip in the gross margin for the second half of 2016/17 from 35.3% in the first half to 21.5%.