Have been reading the comments on this company with great interest - thanks everyone! It looks like a solid company demonstrating stable earnings growth.

I spotted something in the latest report that I thought looked a bit concerning going forward, but I’m a novice with reading accounts and it might be a very common thing.

There was a significant reversal in warranty provisions adding about $13m to revenue (from -$5m FY23 to +$8m FY24; FY22 was +$9m; the remaining liability for warranty provisions is around $1m). There are several other lines in the P&L statement where expenses have increased fairly significantly and ahead of revenue growth rate.

Does this warranty accounting mask the increased costs? Presuming this isn’t repeatable given the current liability listed as $1m, so is there a risk that profit for this FY is significantly lower?