Buying opportunity ahead, page-26

This is my take on the FY21 Q3 Appendix 4C and the Bid Cost Analysis (p13) in the presentation.

The FY20 Q3 costs ($000s) total $7,354 :

• R and D = $1,137
• Adv/Mark = $134
• Staff = $3,106
• Admin/Corp = $2,977

The breakdown of the cost base from Dec20 to Mar21 (4 months) is shown in the pie chart (p13):

• Offshore Support = 14%
• Fixed Costs =63%
• Sales/Mark = 23%

The actual FY21 Q3 cost base can be estimated using the above distribution:

• Offshore Support = $1,030 (14% of $7,356)
• Fixed Costs = $4,634 (63% of $7,356)
• Sales/Mark = $1,692 (23% of $7,356)

The presentation suggests that Automation acceleration will directly impact 65% of Offshore Costs ie 65% of $1,030 or $670 and indirectly impact the remaining 35% ($360) of Offshore Costs.

My reading of the presentation is that BID expects ongoing Fixed Costs ($4,634 in Q3) to be 'covered' by Revenue (although there was a shortfall in FY21 Q3 as Receipts were only $3,986).

The FY21 Q4 report will be interesting!