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01/03/18
10:59
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Operating Expenses
Operating costs for the reporting period were $71.4m
(2016: $66.3m), an increase of $5.1m (7.8%), falling slightly
as a proportion to sales at 5.5% (2016: 5.6%).
The increase in costs is attributed to an increase in salary
related expenses. Salary costs were $59.0m (2016: $53.6m)
an increase of $5.4m, remaining flat as a proportion of
sales at 4.5% (2016: 4.5%). The increase in salary costs
is attributed to investment in additional headcount as a
result of new vendor signings. Headcount across the group
finished at 410 (2016: 374)
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The 10% increase in revenue was matched by a ~10% increase in Employees and Employees costs due to New Vendor Signings.
I'd expect further growth from these new channels and slight reduction in relative employee costs should provide earnings accretion.