Assets will need to be depreciated to begin cancelling down the DTL. Otherwise it will need to be paid. It generally never ends well if you go up against the Inland Revenue. Either way it will be a surprise as they have not explained it clearly in the results.
Why defer so much? To defer means to put off until a later date. To offset would be to book it in the current period. It smells bad. It smells like there is a surprise ahead. Hence share price has gone nowhere.
The Group's net deferred tax liability at 31 December 2021 totalled GBP24.8m (2020: GBP17.5m), which includes GBP26.5m (2020: GBP19.4m) of deferred tax liabilities relating to the Group's intangible assets, offset by deferred tax assets of GBP1.7m (2020: GBP1.9m).
What are the implications of growing deferred tax liabilities? Is a large write down or an equally large tax charge to be expected in the near future?
A labour shortage should mean more employers looking for staff so increased competition for the available candidates. It will come down to how ruthless your sales teams are and STAF has a reputation for being ruthless. Increased competition means higher wages and as a results improved margins for the recruiters which we are seeing in this years interims over last years. I can't be arsed to try and value this organisation but we are on the first steps of an economic recovery and therefore the perfect conditions for recruiters to flourish. LTH, go and have some fun shorting Soya beans while you are waiting for the recovery!