The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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PS65 - all points I agree with and wouldn’t contest. However there is still any negative market reaction to contend with. That was my immediate concern when I read the RNS. The statements made within are one thing but as it stands, we have no results and no idea when we will have.
As a former auditor I don't find it particularly concerning, it is not uncommon for an audit to be delayed because of issues beyond DX's control. David Newstead has been banned from completing audits for 3 years as a result of the poor Patisserie Valerie audits. Even if he is not the audit partner for DX it has a knock on effect within Grant Thornton.
The RNS from DX on 06/10/21 relieves any real concerns I may have had, it states:
"notification by Grant Thornton of internal resource issues and Grant Thornton's need to replace the Statutory Auditor"
"The Board expects to report final results for the year ended 3 July 2021 in line with previous guidance "
"There have been no material audit issues raised to date by Grant Thornton"
The delay is quite clearly due to internal issues within Grant Thornton, not related to DX's accounts.
DX would not be able to release a formal statement stating this if it were not true, the reporting requirements for listed companies are very strict.
If they did release a statement stating there were no audit issues raised by the auditor, and this were not the case, Grant Thornton would be legally required to release their own statement in disagreement. Having not done so, then this shows that the auditor has not found any issues on the accounts.
A little patience is required here I believe, I know we are all keen to see the results for the year but quite simply they are not allowed to release these until audited. They still have the same management in place that has turned the company around very impressively, the trading updates are good (even if a little vague) and they are continuing with the depots expansion. Personally I do not see anything here that raises red flags for me.
The whole unintelligible post could do with rewriting - while you’re at it, why don’t you add some backup?
Should say GT not GR of course - My apologies
Monty, I'm taking it as GR issues as opposed to DX, implications as discussed previously of the VP ban.
However, I would be hoping for a trading update asap
GR will be delaying signing off for some significant and negative that breaching statutory. If not they can share how numbers are being treated in the accounts. This is how Lookers started out before the bomb went off and the company quite correctly got smashed on the rocks, sadly the SP with it. DX. has had an amazing turnaround - Perhaps to amazing. Anyway time will out as always.