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Great point about the size of the contract. Whilst we will never know if it is true they do not RNS as frequently as they did in the past - so size may be important.
I think some of the things they have put in their news section would probably be RNSed a couple of years back. I remember hearing, from a third party, that the sales teams were under a lot of pressure - not to deliver sales per se but for the share holders. I think they have matured out of that way of thinking and prefer to get on with business and not a show.
"might get a contract update in between and the aa seems to be moving to the end game"
Interesting. I was thinking this earlier. I was also thinking that the BOD don't tend to RNS contract updates these days. The only recent contract update was the large retailer... why? One must assume it was a significant (hopefully in terms of value).
i will give a go.
good luck all speak in late nov.
might get a contract update in between and the aa seems to be moving to the end game
anyway roll on late nov and lets see what we get
"anyway will try to forget all about until nov"
Good luck with that one...
i read it as by the time we pay out deferred tax due covid ni and vat
then we get 1m back from tge r and d credit
net debt will be 5.4 to 5.9m
the only thing at bit of a concern running down stock level which will have to be replaced (hopefully)
anyway will try to forget all about until nov
If I understood you correctly then I agree the deferred tax should not contribute to the net debt figure. Sounds pretty bad if they have done that because we are talking about a £1m difference.
KBYK - the £2m was an example value
Net debt does not include the tax deferral (which is normally just part of trade creditors etc).
However, it looks like the net debt is net of the additional cash which is now in the company's coffers as a result of deferring the payment of the tax.
In my opinion, that cash should not be set off against net debt when comparing the latter with the prior year, because it is earmarked for HMRC, and has only been "created" by the tax deferral.
However, from what they say, the debt appears to be manageable at least.
What's the tax that's been deferred - one must assume VAT and NI - there's no profit, so no CT.
Would they have £2m of deferrals on their revenue projections?
net debt at h1 ly was £6.1m
so even 5.9m is reasonable hopefully it will land between but will so as an improving position in the h1 results
if they keep flat for the full year that would be good
I read it as deferrals less R&D credits is £1m e.g. £2m deferrals less £1m R&D.
Even though that sounds bad, the question I was asking was really asking whether, if net debt included this and they were confident of paying the £1m back in the next few months then net debt yoy would be between £4.4m and £4.9m.
I must admit I struggled with this too.
The second sentence doesn't make sense to my eyes, therefore I focused on the first sentence: similar debt levels to last year - despite COVID-19, which can only be good news.
No, I've just figured it out. Needs a comma: The total value, net of the R&D tax credit cash, of government tax deferrals amounts to just under £1.0m.
So, in other words, they owe the gov £1m in deferrals, but that should be covered by the usual £1m R&D tax credit.
That would make more sense.
Can somebody please explain these sentences to me.
"We expect that Net debt excluding IFRS16 lease liabilities at the end of the Half Year will be in the range £5.4m to £5.9m (FY-2020: £5.6m). The total value, net of the R&D tax credit cash of government tax deferrals amounts to just under £1.0m"
The question I am asking is.... net debt is all things considered so does the £5.4m to £5.9m include the £1m tax deferrals? I assume it does