Quote:
The figures stated above do not include revenue collected from the sale of Professional Care Plans (PCP), an initiative launched in October 2010. The revenue from these plans is carried on the balance sheet as deferred revenue and will be brought to income over the life of the plans (3 Year and Life Time).
The PCP programme has the potential to contribute materially to income. Initially, the rate at which this revenue is brought to income will be largely based on our research of similar programmes in North America. As we gain a better understanding of the Company’s actual experience, we will progressively refine the rate at which this income is recognised.
Because the PCP programme has been in place for less than a year the company is not in a position presently to accurately estimate the amount likely to be brought to income for the period covered by this trading update. The amount that will be brought to income at the half year and full year will be estimated at those times, and will be based on that overseas research and the data collected over the period in relation to use of the plans by our customers.
Given the revenue (not recognised in the income statement as yet...) for the September quarter was $5.4m, it looks like a significant contributor already even though it was only launched in October 2010. I'll be interested in the half year results to see the costs of sales - I imagine it will be quite good.