Member Info for notrac

I agree with the comment below that Tim looked as if he had a few sleepless nights. Gone was the breezy self confidence of earlier in the year. They were wise to take on additional funds whatever way it happened. Fear that the SP will revisit the low of the 17th at some stage. There has been no mention as to whether some patients are still carrying on with the treatment.

Difficult to understand why it takes so long to produce the numbers. Just hope that there are no nasty surpises like there have been on XTR today.

2020 now rather than 2019. Where do you find a placebo for this?

GSK Q1 results out today mention sales of Benlysta at GBP 100million.

All well and good but still no commercial deal in sight.

US$37 mio using 10%, US$44m using 5%.

Many thanks for an excellent report. Very much appreciated.

In line with your forecasts? They look stellar to me. However the absence of a dividend may upset some.

Just wonder whether the trade spat has been casting a shadow. Clearly impending results now the driver. They're bound to be good but there is stiull the issue of the permit.

@lymie The debtor balance would not have appeared in deferred income. There would have been an accounting entry to reduce the balance otstanding on the delinquent amount and charge it to the deferred income provision. Such entries should always pass via the p&l rather than from one balance sheeet account to another. I'm surprised that the accounting system allowed it. Therefore either weak accounting package or fraudulent overide of system controls. Agree that the CFO should have looked at accounts receivable but if the crafty junior was passing entries without his knowledge then he would not pick it up from accounts receivable, but a regular analysis of deferred income would have revealed what was going on. I suspect that this was not done. A background of weak internal controls leading to fraud and exacerbated by inadequate auditing. I am an FCA and cannot defend it. I have seen too many cases of dodgy accounting entries in balance sheet accounts. What tends to happen is that everyone concentrates on the p&l, balance sheet accounts (other than bank where hopefully a bank reconciliation is done each month) are therefore reviewed less frequently leaving scope for undetected fraud. Situation exacerbated in this case by high staff turnover.

Difficult to understand now the accounting entries reducing deferred income and accounts receivable were not spotted by the auditors in the checking of the balance sheet positions. However the person who passed the entry will be in trouble, if it can be shown that this was done more than once. Such entries usually require sign off from a superior before they can be passed, so it would appear that either controls were not rigorous enough or there was collusion. Although the fraudulent accounting resulting in lower profits and lower cash receipts may not be larger in terms of market cap, they tend to have an adverse effect on the reputation of management and the company and the share price can stay down for a while. BT suffered badly from the fraud in the Italian subsidiary last year.

The Guardian article is based on a Global Witness report. It does recommend, inter alia, further investigation of Exxon and COPL officers under the Foreign Corrupt Practices Act and for UK officials the UK Bribery Act. All this and no oil was found. It may be that the financiers for the project in Nigeria have the same concerns that Exxon had in Liberia.

Strange that there was a two month delay in informing Cora of the permit renewal.

There will probably be a spike like last year. Remember the debt and the interest expense.

@NewKOTB Agreed but it is absorbed by the capex.

I imagine the market wants to see genuine cash generation from operating activities. Hopefully this will come in 2018.

Understandable that he wants to take some money off the table. Price will be higher than the FD's sale last week but someway below tonight's close.

Yes it has risen from �25 since the beginning of the month. It will only rise tomorrow if there is good news re 2018.

@MM and gta5 Thanks for your valued inputs.

I cannot see the CB government being too happy with the current situation. They have given a permit; although the infrastructurre is not great, the two major shareholders are going for a very cautious development plan. I am sure that CB would want things to move more quickly on development.