Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Ebitda of 40%, share buyback programme, good divi level - I’m in!
This FT update sums it up quite well and hopefully the BOD will take the steps needed.
“The board needs to re-establish market credibility at speed in our view,” said Barclays. It saw as potential actions launching a share buyback, concluding the forensic investigation as soon as possible, appointing a credible new auditor and re-establishing a majority of independent non-executive directors on the board.
“Ultimately, we think the main point is that Ferrexpo ceased contributions to Blooming Land in May 2018, the amounts involved are negligible ($10m donated in the first half 2018) and the go-forward cash impact on the business and hence valuation impact is zero,” said Barclays. With Ferrexpo having lost 21 per cent of its market value since Friday morning, immediate action can lift the valuation “close to prior levels at a time when [iron ore] pellet markets are experiencing their most buoyant conditions in 10 years”, it said.
https://www.google.co.uk/amp/s/amp.ft.com/content/5e6b4b5a-6a54-11e9-80c7-60ee53e6681d
Yeah just trying to provide context. What level are you in at?
Correct you can't capitalise those but if you acquire a company with those aspects and can FV the order book etc then these can be capitalised on acquisition ( instead of capitalising all to goodwill you apportion to intangiables) - change with FRS102 accounting standard from old uk gaap. It's not a p&l fiddle because it's allowed under ifrs and frs102 (new uk gaap). If you capitalise you essentially recognise the cost in the p&l over 5 years than 1 but will effect you cash flow it is just like buying a piece of machinery in a manufacturing form that will produce revenues for the next 5 years. I think we should stop talking about accounting standards but sure this will help people sleep
Just be careful d*** swinging your FCCA about, you might hit someone in the face!
In regards to point 3 there are criteria, yes. Points 1 that is standard. Point 2, it's just simple cash flow. If your not sure check with your tech department in your practice
Thirdly, you can capitalise internally generated intangiables, please see my post at the weekend and read the accounting standards
Firstly, you can capitalise the brand, customer list etc of a company you acquire if you can determine the fair value. Secondly, The cash flow is tight compared to the profit as the intangiables are still a clashflow hit without the p&l hit until amortisation (much like fixed asset additions) hence why you add back depteciation in a cash flow statement.
Oozi - in or out? How long till we know the decision? Thoughts I'm going to guess out and a decision within 2 weeks
I sold on the way down this morning. Looking to get back in but I don't like to trade on Fridays as peoples strategies and sentiment can change over the weekend
Definitely Chilting. I have just highlighted an accounting risk area to justify the article people keep referencing by Paul Scott (posts from 2pm). The accounting standards have been followed and the accounts are as you would expect for a tech co.
The difficulty with capitalisation of internally generated intangibles is the split between what is research and what is development. Research costs are written off to the p&l where as development costs, as long as the criteria is met, are capitalised. I believe in the accounts the amortisation period of internally generated assets was 5 years but I might be wrong. Obviously the profit effect of the two treatments is huge but it's not to say what has been done is wrong by any means. EY would of highlighted this area as a key risk and tailored their approach to ensure the treatment was correct - although it wouldn't be the first time an audit firm got something wrong.
The rubbish people post on here a-2-b
Volumes are lower, everyone waiting to see how the US react
Lots of companies do this at the year end to help show a stronger cash position - "cash is king". With a tech company there is huge R&D and the accounting standards allow you to capitalise these. I fail to see how this is dodgy accounting if you know anything about how stat accounts are but together and the sector