RE: The results.21 Mar 2017 17:23
Interesting. 52% of revenue in US dollars. Revenue increase of 14.1m due to exchange rates. If the pound soars here revenue/ profits will be impacted next year. At present pound is more likely to fall? That is a big increase due to exchange rates. Likely impacted profits too in a big way.
30.5M goodwill cost all attributed to Grayling. This is purely a paper based exercise as debt has actually fallen 5m or so.
'In the Interim Results announced in July 2016, goodwill was impaired by £15.0 million, in respect of Grayling. A further impairment of £15.5 million was booked at 31 December 2016 following the restructure of the US lobbying business, including the post-year end disposal of Whiteboard Associates.'
They need to draw a line under Grayling as these diverging businesses and other closed buisnesses(Swedish offices/ American lobbying) are hampering what would of otherwise been respectable results. Like for like sales up 1% overall but mostly because of Grayling.
If they have turned the corner here than 2017 could be very strong for Huntsworth if the Dollar maintains it's strength. It is a case of smoke and mirrors as exchange rates really do hide the real numbers here.
The movement of SP today will have been impacted by funds in the background. If the funds like the results then this will surge as the sellers clear out. Of course if i was selling I would wait for the surge and then sell. So need to see where the Sp settles here. No real reason for it to fall here.