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Illustration · Finance

Cut cost of sales by 6%, add £72k profit

Same amount of work, same fixed costs. Bringing cost of sales from 78% to 72% takes profit from 9% to 15%.

Hand-drawn figures. On £1.2m of work won for 2025, cost of sales at 78% leaves £108k profit, 9%. Reducing cost of sales by 6% to 72% gives £336k gross profit and £180k profit, 15%. A cloud reads Increase profit by £72k, beside a drawn stack of banknotes. Underneath: same amount of work and same fixed costs, just focusing on cost of sales, labour and materials.

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