Well, shows how little I know. I was wrong. Based on the AGM...

Well, shows how little I know.

I was wrong.

Based on the AGM presentation (Slide 19) is seems that it was indeed a Gross Margin issue.

And the issue arose because of the Post-Brexit falls in the GBP and the Euro. (I should have been able to figure that this might have had some impact on the business, but I wasn't aware of just how strong the growth in local currency sales was, and how this impacted margins.)

And unfortunately for SDI, that happened just at the time when GBP sales growth was more than double the rate of growth of local currency sales across the other geographies of the globe.

So, your best sales penetration happened in an area which experienced a margin squeeze due to one-off factors totally outside of your control.

Talk abut being punished for hitting a good shot.

Imagine if they grow UK Sales at 18% in a period of a stable GPB.