Hi Varky, there are some highly knowledgable people in this...

Hi Varky, there are some highly knowledgable people in this thread. I am sure one of them has a good understanding and will get back to you.

The 2018 1/2 yearly was 7.25mil Revenue vs 4.46mil Cost of sales. So 38.4% profit (before all other expenses)
The 2019 1/2 yearly was 8.16mil Revenue vs 6.01 Cost of sales. So 26.3% profit. (before all other expenses)

Im not sure what goes into the cost of sale? But yes it has dropped by 12.1%... we know ALC is spending more money and time on future expansion/growth in FY19-20 and hence why they did the recent capital raising.

There were a lot of contract we won this year that I bet took a lot of resources and money to win. Besides the price of undertaking an extensive tender process, it would not surprise me if they making their contract (2,3 years, 5 years etc) quite competitive, e.g. $500,000 contract with Taunton and Sumerset. It was for a very low cost, however, it was a foot in the door. Allowing them to show a great product, then for future expansion some of their many hospitals start using our products making larger contracts, better return %, economies of scale, further word of mouth and slowing building up the new normal in modern hospitals.

Someone who has knowledge of what goes in the Cost of Sales would be able to elaborate and help you out further.

For now, management see an opportunity to capture in the UK and ANZ. They are pushing hard and hiring lot new senior staff for new roles. We have our foot in many doors and whilst I feel we have not had a Large (few million) dollar deals done recently, I feel we have made a few smaller ones money wise, but will high future potential e.g. Healthscope

Cheers