Yes - that is exactly what I thought - really same as capitalising them over a period of time.so the increase in profit attributable to pxs in next interims must be the incremental increase over and above the contribution earned last time.I fear that some holders may have misinterpreted the costs at an end bit in the rns.
I think you may be misunderstanding what is being said by Provexis. There was a large investment made in bringing Fruitflow powder to global scale production and logistics. they are saying that this investment has been completed, meaning they have stopped spending on it. The accounting treatment of this investment is, of course, ongoing, so there will be a charge against gross profits in future years. Lets make a hypothetical case. I want to make a new widget, and I invest £1m on equipment and the logistical capability to have these widgets available of the shelf to any widget buyer. I have determined that the life of this project is 10 years. The widgets are there, anywhere they are needed, I have spent the mill in achieving that. So my spending has finished. However, at each accounting year end, for the next ten years, I will amortise my £1 by writing down £100k from the gross profit on sales. When I have done that, I will arrive at the net profit.
Paid for? Yes. Accounted for in a single year? No.
"Did any of us see revenues coming in the Full Years?"
I certainly didn't, it was a very pleasant surprise. I was just throwing numbers out which would make me happy and they might be better or worse than that. Just think it's a bit early and unrealistic to talk about break-even this FY. If it happens, great, it'd be a nice bonus but if not, its by no means the end of the world. If net cash outflow for this FY was 150k that'd mean the cash pile would last till 2017 rather than 2016.
Still a little shell shocked here. Bad day at the office but as always, there are plusses and minuses.
6/7 years with no commercially available FFII version which arrived May 2013 with only 17 FII products contributing on average only 6.17 months per product - and already the large scale up costs have been covered.
What does that imply to you for the next 12 months with in total 34 products (and more arriving) adding to the bottom line and production costs reduced from Q2 2014?
Question to you - how much do you think a global production and logistics set up would cost?
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