Looking at core costs (staff, rent and office /admin), the H18 result of $83.7M compares to the H17 result of $94.2M. However once compared to revenue, the result shows a still continuing top heavy result:
* Revenue
H18 = $96.3M [core costs ratio (CCR) = 87%; +7%)
H17 = $117.8M [CCR = 80%]
* Core Revenue (no WIP movement, no other income, etc - just Fee Revenue)
H18 = $99.7M [CCR = 84%; + 1.5%]
H17 = $114.2M [CCR = 82.5%]
Taking GL out of the equation will therefore further reduce the revenue profile by $13M (@H18) meaning that the "continuing operations" outlook (going through 2018) will be down closer to /below $83M (circa, $166M H18 ex-GL annualised). If so, then this will likely make the AU operations smaller than M&B (>$220M), and SHJ (~$177M, H18 annualised).
Still a lot more in transformational adjustment is required here. Hence the GL movement amongst others (including staff and rent).
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