'What of the the prepayment for non-current assets'...can we still hope to retrieve some money from this, or was this the discrepancy in the estimations that will be the 'write downs'.
Also is it possible that the BMR watch group could pressure the new board into investigating/reporting MA for fraud. At the end of the day I feel that he has extorted money from us all, and in any other walk of life he would be held to account. It is in all essence stealing....I bet his pockets arent empty after all this.
Could the write down contain fees & other expenditure relating to MOU, JVA & work done OBO BMR by consultants & companies. There has been a lot of testing over the last four years, MV & his people were being paid quite large amounts for "Assisting" in purchase of assets not owned by them,if I remember correctly.
morning guys. Just woke up here in Canada to see we got a rns. After reading it it appears that all is not lost and there is light at the end of tunnel and we just got to ride it out till March. I notice they got rid of some of the work force at the uk office cutting salaries that arnt needed . He seems to be doing a good job of cleaning up MA mess in my opinion. I think by look of it he is trying to get everything in order to run this company as it should be with correct information and balance sheets. At least it's hopeful for our future as a shareholder imo.
LJC, write downs are needed when companies have stacked the balance sheet with costs that should have been expensed in order to "maximise" profits or "minimise" losses. Most commonly done by incoming CEO's as a one off opportunity to clean things up and blame the previous management.
The incoming management team will also take the opportunity to kitchen sink the write down by chucking anything they can at it, often including provisions against future potential liabilities which may have a limited chance of crystallising.
Result is the P&L going forward is then unencumbered by future impairment/amortisation, low level accrued risks don't materialise and are released to the P&L to boost profit and the new CEO/Team look like financial wizards.
The size of the write down did surprise me given the magnitude of the anomaly indicated in the previous RNS. Having said that, if AB does get us up and running, then our outlook is far more attractive than if we were carrying a load of junk on the Balance Sheet...............And with our financials now having been crawled all over and as clean as a whistle, we will be a far more attractive and less risky proposition for any financier looking our way.
I'm feeling much better now 32pps by March :-D Cheers
Is a scary word to me when a company is in this financial position. Experiences( I've has quite a few!)have shown me that with dilution even at 1for 10 after a short time of trading, unless there is a good recovery with increase in productivity the Sp drops rapidl and to get back even to break even there is usually a very high mountain to climb.Quite a number of mine after a several years have never recovered even though they soldier on. I was lucky to get out on a few spikes . Hope we are not going down that road here.
INVESTOPEDIA EXPLAINS 'WRITE-DOWN' Write-downs are typically reflected in a company's income statement as an above-the-line expense, thereby reducing net income. This, however, is not always a bad thing, since a write-down is simply a paper loss, which, since it lowers net income, will reduce a firm's tax burden. Companies will usually attempt to time large write-downs together, so they can "take a bath" in one reporting period with the hope of quickly recovering in the next period.
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