I think it means that firms which make losses can carry those forward to offset tax on future profits. The footnote just means they are not including any figures for future tax offsets in the current accounts. In effect it means there's a bit of extra hidden value in EPO, e.g. if anyone wants to take them over.
RE: Decent buys
Section 6. Income Tax Expense - Any ideas what this is in relation to? No deferred tax asset has been recognised in relation to trading loss carried forward of £83 million (FY 2013: £77 million).
RE: Decent buys
Hi Copout... Anther set of fine results....expected costs to rise but as you say agree these will need to be watch otherwise will eat into the margins. Cash burn from 13.4m to 9.4m ...which is in line with the acquisitions such as Baydonhill. Received cash injection of 27m in September 2014....so expect more land grabbing activities in different regions. Admin expenses increase by c£5m from last year - primarily due to Baydonhill ...it states. . and as such increases in staffing costs as headcount has increased.
Some decent buys going through on the back of the results - £89k and £36k and some others. The increase in total revenue was a great number but much higher costs too are a slight concern - they will need to keep a lid on those. Not easy to predict a break even yet though. A few more contract wins will help. I can't see any downside to EPO other than a catastrophic IT failure so slowly stake building here. I expect to have to wait for the next half year numbers now before any major lift in the SP, unless an institution likes this enough to take a big position.
7 Oct '14
Another excellent high quality name on the customer roster. Shame the overall market is so generally weak at the moment as it must be colouring what people think. But EPO is standing out as a beacon of promise. Results should kick start something later this month.
30 Sep '14
Re: more heavy selling
I wasn't worried about the rights. £26 mill at 40.85 is around a 12 per cent of the total cap. I don't think EPO would have secured that price if the results were set to be disappointing. Particularly as Oppenheimer took most of the offer. I also think the growth momentum behind EPO will show in the results and the extra cash will drive global expansion. So all generally good. Which makes it odd that there's clearly a biggish seller around dropping quite chunky parcels off at down to 40p. But I guess it's better they do that before the results not after. If the seller is cleared out then the results should drive the price up. I'm targetting 50p this year then see how the story goes.
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