I have completed a look at GAP on the basis that what I have...

I have completed a look at GAP on the basis that what I have observed for 2018 is correct. As I have decided against taking a position in this company at this time, the following observations from unwinding the accounts back to 2016 on the identified 2018 basis may be of use (or not) to others:

* the business is subject to a high level of competition and has a declining sales trend in its main Australiasia segment. Down from a 2016 sales (adjusted for rebates and discounts at the calculated 2018 rate) of $88.9m to $58.0m in 2019.

* there was a step sales increase from the Americas in 2017 but sales have been flat since. The reported 2019 increase in this segment was more due to the weakening AUDUSD rate than not.

* the other markets are relatively small and have been flat or in marginal decline.

* the adjusted cost of materials appears to be a variable cost that has been largely consistent through the years.

* the adjusted labour costs appears to be a fixed cost that also has been largely consistent through the years.

Good luck to holders.