Ann: Trading Update, page-5

Especially when you consider that DH2016's result was down 29% on its pcp, which was easily explained by some sharp A$ appreciation due post-Brexit and due to a recovery in commodity prices.

But today's update comes with no such excuse, because exchange rates have been relatively unchanged in DH2017 vs DH2016.

Besides the obvious ongoing rapid rate of decay in amalgam sales, there are three major issues that I have with today's announcement:

1. The reference to the new curing light as a source of revenue pick-up in the second half. This feels to me a bit like "Hey, look over there!" because there is no way a single piece of equipment will be able to be a big money spinner.

2. The UK. It was stated in the previous result that the blip in UK sales was temporary and due for recovery in the ensuing financial period.

3. Reference to cost reduction potential. I don't like it when companies do this. If the business is running with excessive cost overhead, why attend to it only when the top line comes under pressure? Good managers should be running businesses as efficiently as possible under all business conditions, not just when things suddenly become tough.

Numerous milestone misses here.