Ann: Appendix 4E June 30 2017, page-13

"Hi Adam, I notice in management's roadshow (pg 18) they mention "Double digit growth in the Australian office was primarily due to strong direct exports to the emerging markets".
Do you feel this slide adequately explains the unusual geographic sector breakdown?"


@andy777,

The segmental numbers by geography have always been a bit variable, due to transfer pricing and also lumpy order batches. But in the 2017 result, they were particularly skewiff (especially in the June half compared to pcp, which saw profits from Australia being 85% up to $6.3m ($3.4m in pcp), while Europe made a $0.5m loss compared to a $1.8m profit in the pcp. US broke even ($1.6m profit in pcp) and Brazil also made a loss ($0.4m) compared to a $0.5m profit in pcp.

So, while I tend to not read too much into geographical segmental numbers, the most recent ones are so out of kilter that it renders them almost meaningless.

I have the good fortune to be meeting the company managers tomorrow.

Clarifying this issues is on my list of discussion points.

I will revert with my learnings.