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With regard to the auditors this is what Stockopedia had to say on Thursday:
"Last year, PWC resigned from its position as auditor to the company. In giving reasons for its decision to resign, as it is legally obliged to, it merely cited the company's 2018 audit report, without being any more specific than that.
If you ever find yourself with more time on your hands than you can put to good use, check out Staffline's audit report from 2018. It's a classic example of a disastrous audit report - it has everything from a warning about the company's ability to continue as a going concern, to anonymous whistleblower accusations of wrongdoing, goodwill impairment and breach of national minimum wage legislation.
In the midst of this horror show, PWC disclosed that there were "failures by management to fully disclose to us and to account for certain customer claims and other disputes". Perhaps this is why PWC fired its own client?
PWC was replaced by Grant Thornton, of Patisserie Holdings (LON:CAKE) fame. The head of Grant Thornton made headlines last year for saying "we are not looking for fraud, we're not looking at the future, we're not giving a statement that the accounts are correct". It sounds like they are a good fit for Staffline"
Do we know when to expect the next set of results to be published? Thanks
The People Plus shows promise and apprenticeship training is obviously an area for growth, although trained EU workers "could" get through a points system with a job contract and skills ....but there has to be more home grown skill development...absurd not to
I think the day the previous auditors left, that was a major warning bell and only now with the next result is a proper balance sheet "hopefully" going to be revealed .....everyone will have their eyes focused for the writedowns, exceptionals and the current recruitment profit margin I would imagine and where that leaves the bottom line...and take it from there
Not many investors are going to touch this without that balance sheet to look at first, after that awful January Trading Update
IMO
I don't see much discussion with regards People Plus side of the business, does anyone have an opinion?
PP are making circa a million a month, turnover circa £100 million.
Working in this sector (training) and directly with People Plus, I see this as a solid business and with opportunity to grow further. If they can continue to win more contracts and optimise their delivery there are healthy margins to be made.
Let's talk about future business than debating about past. This has massive debt.. It had heavily relied on cheap EU labour which is coming to halt. Hrnet is only saviour and if they decide to pull plug this would have no ability to move ahead. Not creating a scare here even I am on massive loss but trying to make sure we understand
Everyone said the same on thomas cook
Poker - I don't see administration on the cards either. The P&L shows Net Assets of c£90m over the previous three years excluding 2019 where we were at c£85m mid year. But the key is keeping the debt down. GLA
"At what point does it go into administration?"
when you dont have enough cash to run the day to day business and pay your immediate costs/bills/loan interest payments etc leading to the banks calling the loans in and you cant pay them back ... ..and havent been able to raise any further funds or sell any assets to help you do so.....
I am not suggesting these guys are at that stage, that would be somewhat misleading
At what point does it go into administration? How much worse does it need to get before the administrators are called in.
Unfortunately it looks like company is going for the administration soon :(