I think the key reason for their high overhead costs is simply...

I think the key reason for their high overhead costs is simply because the global foot print is so large... largely due to the legacy footprint of RWL water, but also their aggressive push into Asia, Americas, Africa and middle east post merger.. all of which were to take advantage of opportunities that management could see in the near horizon where FLC would be able to flourish e.g. Brazil and Govt's push for desal, Egypt's Govt push for new housing along the coast.... management essentially identified all the low hanging fruit globally and made sure they had a presence in those markets... all that costs money to set up, but once those upfront costs are borne.. they provide a platform for the business to grow its revenue base.

There was a period where we got announcements each month about sales in geographical regions across the globe.. establishing new offices... while that sounded great, it also meant we were increasing our cost base. I was glad to hear that they seem to have settled now .. with the clear message that they were not going to expand into markets such as India a telling sign that they are now set in terms of geographical presence. But having said that, they are still open to opportunities where it will be a low capital cost to enter.. such as Australia.

I think there will be a period in the future (after we become profitable) where we may expand the cost base further.. but for now, management's focus should be to grow revenue and from what I've heard, that is what they are doing.