Question-and-Answer Session
Operator
Thank you. (Operator instructions) Our first question comes from the line of Jeff Silber with BMO Capital Markets. Please proceed with your question.
Jeff Silber – BMO Capital Markets
Congratulation on a very good quarter and the end of a solid year.
Sandy Young
Thank you, Jeff.
Jeff Silber – BMO Capital Markets
No, problem. Sandy in prepared remarks, you talked a little bit about gross margin trends, and you mentioned how they were volatile, but the second half of this year look a little bit better than the first half. Are there any specific reasons for that and should we expect those kind of seasonal trends to continue next year?
Paul Weston
Yes. It’s Paul, Jeff. What tends to happen is most of your charge rates raises come through in April of the financial year, and the pay raises which get paid through the staffs, tends to occur anytime from that quarter through the following two or three quarters.
So, sometimes in Q3 you get the benefit of most of the charge rate raise about much pay rate raise in that quarter. More paid rate raise comes in quarter four, by the time you get into quarter one most of that rise come through the system, and then in Q2 you’ve got more benefit of charge rate raise or pay raise.
Paul Weston
So, we are really saying is that it tends to be a little stronger in the second half of the year then the first half of the year.
Jeff Silber – BMO Capital Markets
That makes sense. I know it’s still little early, but are you planning on rising billing rates in April and if so, you have any identification how much?
Paul Weston
Yes, we are planning to raise them, we’ve already written to local authorities to rise that question with them and from memory I think the figure is about 5.5%, definitely not ballpark, because it’s made up of two components, an element for the retail price and execute as wage inflation and as an element for some additional and holiday that has come about the new legislations.
These were holidays that we add last year so, in a few more days that people have to catch up and the balance is this year, but we’ve already written out to local authorities now and although was a time from implementing this are going to be probably April next year end of May.
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