To add a bit of complexity they have deleted the second other expenses line from the accounts and relocated those costs elsewhere along with D & A which has also disappeared and been reallocated which is very strange as it is a stand alone non cash expense ?
Suffice it to say that the first half marketing expenses reported at the time were$3097K in 16 $1454K in 17 and $1168K in 18 .
The expense that increased dramatically in the second half last year that caused the second half loss was of course marketing. I thought this was very strange and may involve a bit of slight of hand. On checking though it was the same in 16
Full year marketing figures reported are massive compared to profit $14M in 16 and $12M in 17.
The cause is not retail refurbishment as that was reported in a separate line.
If they follow trend we can look forward to a marketing expense driven second half loss.
I hope the decision not to pay a dividend is not as a result of an unfavourable report from the expert they appointed.
As they haven't disclosed that report there is still hope that it hasn't hit the deck and could still be favourable.
The other alternative is to start exporting product and earning foreign currency.
Given the cash seems to be building up there is still light at the end of this long and torturous tunnel.
XPD Price at posting:
3.3¢ Sentiment: Hold Disclosure: Held
