This is my take on the FY21 Q3 Appendix 4C and the Bid Cost...

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!