What's wrong with the company?

  1. 654 Posts.
    How is it possible that this company has had such a massive increase in operating costs this year?

    Sure, turnover has increased 43.8% from last year, but operating costs have soared from $5.5m last year to a minimum of $8.3m this year (assuming a "small" loss of $100,000) - that's an increase of $2.8m or 51%!!!!

    It will be interesting to read the annual report to see where all that money was spent. Given the amount of media coverage of this company, it doesn't look like they spent it on publicity.

    Compare the result with IAS... they achieved a $7m profit on a turnover of somewhere between $230m to $250m (this is an estimate based on receipts from customers for 9 months as per the Commitments Test Entity - Third Quarter Report, annualised to 12 months), and are now talking about paying a dividend.

    Anyone have any thoughts?
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