Ann: Half Yearly Report and Accounts, page-3

But they have pulled the rabbit out of the hat. We may need to pay up to $450000 in August 2019 for back workers compensation premiums from 2015-16 and 2016-17. Also note we pay award wages which rise when minimum wages rise and we can only increase charge outs depending on contractual agreements. An ALP Government pushing for minimum wage rises could cause problems if contracts are linked to the CPI and not wages.

However, the gross profit margin did improve slightly in the last half year from 18.4% to 18.7% and overheads fell so the underlying profit position improved (I suspect it would have improved more except for the minimum wage rise). However the large back payment for workers compensation premiums will delay any dividends for some time.