Now spend the next few hours researching this stock or vist the AVDFN BB.
Yet again you have not read note 32 in the accounts, which tells you why.
In effect they tell you in their view it is daft to show a luge loss in 2010 and then write it back in as a huge profit in 2011.!!
I 100% agree with the company.
Just yet another stupid accounting rule that would only show the wrong end of the stick
Why would they spend all the shareholders funds the directors own 60% odd of the stock.?
Yet again you have not read note 32 in the accounts, which tells you why.
In effect they tell you in their view it is daft to show a luge loss in 2010 and then write it back in as a huge profit in 2011.!!
I 100% agree with the company.
I did actually and I laughed out loud.
It is not only incredibly arrogant but also downright stupid(!) of the company to disagree with the auditors on this one. Accounting practices are in place for a reason and the auditors will know them inside out and certainly will have significantly better understanding of them than the company.
I'm definitely with the auditors on this one.
The huge number of restatements of the prior years only adds fuel to this argument.
31. Prior year restatements
Identification of intangible assets on business combination
In January 2008, the Group acquired Machine Effects Limited and the excess of consideration over the fair value of identifiable assets and liabilities, totalling £1.8m, was recognised as goodwill. Subsequently, the directors have identified certain intangible assets, substantially comprising certain customer contracts and relationships, which should have been separated and recognised at fair value. This has therefore resulted in a material misstatement of the Group financial position and performance presented in the financial statements for 2008 and 2009.
These intangible assets have retrospectively been valued as at the date of acquisition as £1.8m (with a corresponding deferred tax liability of £0.4m) and the directors believe the expected useful life to have been one year from the date of acquisition, given the short duration of the key customer contract in question.
Furthermore, the directors believe that the restated goodwill of £0.5m arising from this business combination was incorrectly tested for impairment based on forecast cash flows which arose outside of the Machine Effects Limited cash generating unit. Accordingly, having revisited this analysis, the directors believe the goodwill should have been fully impaired as at 31 March 2009 and have made the related adjustment to the statement of financial position at 31 March 2009.
Accounting entries with respect to a capital reduction
In March 2009, the Company applied to the court for a reduction of the Company's share premium account by £3.8m. Subsequently, the directors have identified that the accounting entries recognised had been misclassified and therefore resulted in a material misstatement of the Group financial performance presented in the financial statements for 2009.
The accounting entries have subsequently been corrected such that the level of exceptional income recognised in 2009 has been reduced to reflect losses which had been incorrectly recognised directly in equity. There has been no overall effect on equity.
Accounting entries with respect to profit on sale of E-Title
In the period to March 31, 2009, the Company sold certain software IP it had created in prior years. The substance of the sale agreement was for consideration to be received as equity shares in an unlisted entity. The Company had recognised as exceptional income the notional contract amount of £1.8m. In doing so it resulted in a material misstatement of the Group financial position and performance presented in the financial statements for 2009. Subsequently the directors have revisited the accounting treatment for recognition of consideration received in the form of shares in an unlisted entity and consider that the original fair value of the consideration approximated to book value being £0.1. Accordingly the exceptional income of £1.8m has been reversed in 2009 resulting in related adjustment to the statement of financial position at 31 March 2009.
Look at what it did to the EPS - A whacking 21p loss the headline number!!!
Just yet another stupid accounting rule that would only show the wrong end of the stick
LOL. Why - because it doesn't suit the company or you.
This is actually an awesome example of how not to account for anything properly and one I shall remember for a while to come.
I bought in After the last accounts not prior.
I bought in on a pe under 2 , pure value as profits pour in.
The accounts are for all to see and bar that note are clean as a whistle.
Profits will = market cap within 2 years at this growth rate.
Please read note 32.!!
Any thoughts on the restatements Harry?
Your PE number will be zilch if they need to restate 2010 numbers at some point.
This is the very reason why some here will never make money on the stockmarket, you have to invest where others price the stock so low that real value is given to you, for free.
Look at the turnover, £18M at just the half year with £2.7M profit.!!
Look at the new contracts, growth by the sack full
If you live in fear stay away from the market.
This is the very reason why some here will never make money on the stockmarket, you have to invest where others price the stock so low that real value is given to you, for free.
Look at the turnover, £18M at just the half year with £2.7M profit.!!
Look at the new contracts, growth by the sack full
If you live in fear stay away from the market.
If I had my way Harry, I wouldn't let anyone loose near equities without going through some kind of training to understand the basics - there's just so much smoke and mirrors out there.
You've actually given me an idea for a business.
Anyway that's enough from me.
YOUR headline loss would be written back in as profit this year so what the F----- is the point of doing it,{ bar some account rule from the EU.?]
This is the last half year results.!!Prime Focus posts £2.67m H1 profit, AIM suspension lifted
By BFN News | 09:03 AM | Monday 11 April, 2011
Prime Focus London PLC ORD 5P (PFO)
Shares in Prime Focus London plc were restored to AIM trading after the company published its results for the six months to September 30. Prime Focus, which provides technology-based creative services for the media and entertainment industry, reported a first-half pre-tax profit of £2.67m, up from £7k, on turnover rising to £18.5m from £8.2m. Earnings per share rose to 8.19p from 0.09p in H1 2009. Net debt fell to £2.74m from £4.38m. The company said the year had started positively with new business wins. It launched its digital production arm during the period and was currently servicing clients such as Visa, Burberry and Volkswagen. It had seen additional success in the 3D conversion space, having established its capabilities through involvement in 'Clash of the Titans' alongside Prime Focus North America, part of the larger group within parent company Prime Focus India. The company participated in the 3D conversion business by contributing creative services for several movies and completed two commercials for Gucci and Puma from 2D to 3D stereoscopic. Chairman and MD Namit Malhotra said, 'In just over a year since our launch as a single global brand under the Prime Focus name in October 2009, we are already being talked about as one of the world's leading players in the industry.' At 9:03am: (LON:PFO) share price was +11p at 27.5p Story provided by StockMarketWire.com
Note nett debt has come down to near zero since these results ,this can be found by reading the full half year results.
Here we have a ten million pound company on track to make over £5.4]M for the year just ended .!!!!!!
[OR MORE]
When will you guys see what you can buy here for a song, this company has been listed for over 20 years, and is making huge profits.
On a pe of under 2.!!
When will you guys see what you can buy here for a song, this company has been listed for over 20 years, and is making huge profits.
When will you read what I've written above and understand why the market is being extremely doubtful about PFO's future for very good reasons.
PFO India is on a pe of around 8
PFO UK is on a PE of 2.
Both are growing at 40%
You keep mentioning PE -
The problem is the "E" hasn't been reliable historically.
Take a look at" India Capital growth fund," March report, and more so Feb report [found under archives]
From this you can see the city is happy to invest millions in Prime Focus India on a pe of 8.
They not me state 40% growth.
Here one can buy Prime focus UK on a PE of 2 with that same 40% growth.
Also note the new nomad .!!
Prime Focus London (LON:PFO) is valued on the LSE at around £7M today. Prime focus India own 60% of Prime Focus London. Both companies are growing at about 40% P/A
Prime focus has a web page where one can read all about them both. Results were put out for Prime focus India last week and a write up on the conference call can be found under India , then investor, then accounts. http://investor.primefocusworld.com/reports10.html . Read it from tip to toe.
They are very smart , and rather a lot has been let out of the bag, Note that a value of $50M has been placed on Prime Focus London V its market cap of just $11M. Note also £5M is being spent in the UK this year for growth debt, is low or nothing after £10M cash came in after the last set of accounts.
Prime focus India has pulled the conference call posted above.[or the web site has been down for the last few days]
Prime Focus India is valued at around £80M on their stockmarket.
Prime focus London is valued at just 1/10th of that.
35% of the workload comes from Prime focus London.
So can one put a real valuation on Prime Focus London of one third of £80M ?
I think one can.
If that is the case Prime Focus London should be valued at £28M or over 75p.
Results came out for the full year on Fri.
EPS of 11.5p
Growth in turnover 30%
Bullish outlook
Sale of loss making start up due any day.
This stock trades on a pe of two, is growing at 30% and offers just about the best value one can find on AIM.
Company has just put out 2 N0 RNS news items.
The first is the sale of the loss making part of the group, the second is the Non Exc director has sold out to the Indian parent company at 35p a share.
One can buy. the stock for just 22p today.
EPS would have been 23p without the loss making division last year, and can do 23p this year for a pe of just one.
RNS just out.
Company is NOT de listing, and now trades on a pe of under TWO.
Take a look at the growth rate.
