SO I just dug through the report in a little more detail.
They don't explicitly state it, but it seems that the De Costi business just had a huge investment (check capex figures) in the automation of processes...
My reasons for thinking this way are:
- Increased capex ($34m vs $10.5m D&A)
- Multiple references to automation of the De Costi business
- Multiple mentions of costs that were maintained in the business so that processes were not interrupted
- Mention of operational efficiencies to be had in De Costi
It may even be that they're expanding the business, hence the capex amount.
Happy to hear where I may be going wrong... or any other thoughts on capital expenditure.
I do notice that they've chopped out the ROA/ROE graphs within the "Deliver Acceptable Returns" section. Interesting...
TGR Price at posting:
$3.98 Sentiment: Hold Disclosure: Held
