Further ‘food for thought’ is the effect of inflation on revenue...

Further ‘food for thought’ is the effect of inflation on revenue over the past decade.

The world never stands still, and even in a ‘so called low inflation environment’, input costs continue to rise every year, and certainly their salaries have.

Therefore, just to keep up with the most basic of inflation, revenue should be at least 20% higher today compared to a decade ago (probably more like 30-40% taking into account real inflation and compounding).

An easy validation of Korvest’s faltering performance is to simply ask whether their major competitors have increased revenue during the past 10 years, the answer is an emphatic ‘yes’.

Once again, don’t take my word for it, just ring their major competitors and ask the question –

Adelaide Galvanisers – SA head office
Kounis Metal Industries – WA head office
Phoenix Metalform – WA head office