News: ANG Austin Engineering Posts FY Statutory NPAT Of A$7.1 Million, page-5

Looks like you are correct on the warranty issues and the depressing NPAT based on the annual report blurb :

"On a statutory basis, Group NPAT fell to $7.1 million from $20.6 million the previous year. The Group’s EBITDA was $20.3 million from $32.5 million in FY22. Austin experienced growth in all regions, except for Perth, Western Australia, which faced challenging market conditions, labour shortages, and delayed customer orders, which have been received but will be booked in FY24. The full year FY23 statutory result was impacted by certain one-off costs which comprised: • Write down of IT investment in ERP following new management review of investment priorities - $3.5 million. • Costs regarding a warranty issue from circa 2021, which will be completed during FY24. Costs are high due to equipment needing to be returned to Perth for repairs. No further significant warranty issues are anticipated - $1.8 million."

TO me it appears their vaunted improvements in production techniques via work stations and mechanisation to reduce costs , announced from a year or two ago have struck a snag going by the very low margins now , or is it just that they lack the expertise to compete for what ever reason ?