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Profit First Assessment

Profit First Financial Allocation Analysis

As we have almost 2 full years of data available we can see that the current year, 2018, is slightly ahead
in revenue terms on a pro rata basis when compared to the 2017 year, and so we will base our analysis
on the current year’s information. Although the 2 years are quite similar in terms of revenue level
overall, we can see that the Owner’s Pay allocation is higher in the current year, so we will build further
from that positive change on the prior year.

Profit Profit
FINANCIAL YEAR: 2018 Actual Actual First First Delta Fix
(8 months: Jan-Aug'18) $ % % $

Top Line Revenue 65,190
Materials & 0
Subcontractors
Real Revenue 65,190 100% 100%

Profit 0 0% 5% 3,260 -3,260 INCREASE

Owners Pay 37,076 57% 50% 32,595 4,481 MAINTAIN
Tax 0 0% 15% 9,779 -9,779 INCREASE

Operating Expenses 28,114 43% 30% 19,557 8,557 DECREASE

We can see from the above analysis for the current financial year (2018), that the Owner’s Pay
allocation is now well ahead of the baseline target level, and that the OpEx category has dropped
significantly and is now much closer to the target baseline level. However, both the Profit and Tax
allocations have remained at ‘zero’ and will need to be adjusted for in the Roll Out Plan. Again, this will
principally need to be derived from a further reduction in OpEx which will effectively transfer and be
allocated into Profit, Owner’s Pay and Tax, although there will also likely be an adjustment and transfer
from the Owner’s Pay allocation.

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