What’s needed to get $1.5, page-64

I had a look at some of the previous slides to get a sense of the FTE levels at the group level vs PCSIL and Sentenial.

• In the FY23 Annual report, EML reported total group headcount of 659 - See image 1 below (note they reported headcount here and not FTE. Lets assume FTE was 635 to account for some staff working part time).
• In the FY23 Presentation slide, EML reported PCSIL FTE at 236 - See image 2 attached below
• Sentenial had 60 FTEs when acquired back in 2021 (see 3rd image below) which will likely be higher now due to revenue and cost base growing over the past 3 years (let's assume its increased to 75)

The above shows PCSIL and Sentenial accounting for nearly 50% of EML FTEs (236+75 vs 635).

However, when it comes to revenue contribution
below is the breakdown as per the most recent H1 FY24 report.

		PCSIL (source: slide 5 H124)	Sentenial (source: slide 8 H124)	Group Revenue (source: slide 5 H124)
1	H1 24 Revenue	$43.4	$7.5	$150.7

To summarise, Sentenial and PCSIL accounted for 50% FTEs but only contributed 33% to group revenue. Once the dust settles, the group margins should reflect significant improvement as we will be left with a leaner business with profitable verticals.

H2 FY25 will provide us a clean report as by then Sentential sale will hopefully have settled and PCSIL fully wound up.

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