Good morning, it's Paul here!


Cloudcall (LON:CALL)

As promised, here are the videos from the Cloudcall (LON:CALL) (in which I hold a long position) Capital Markets Day, which I reported on here, on 22 Jan 2019. Clicking on the links below will take you directly to the videos, on Vimeo.

9-minute summary video

Full presentation 1 hr 41m



Staffline (LON:STAF)

(suspended at 670p)

Not another accounting scandal?

What on earth was AIM thinking of, allowing Staffline shares to continue trading yesterday, after a bombshell announcement at 7am that results would be delayed? Investors understandably started panic selling, and the shares dropped by about a third. Only at 3:50pm were the shares suspended. This is madness/incompetence.

With some sort of accounting problems probably having emerged (why else would results be delayed?) then shares cannot be allowed to trade, as it's a false market. People don't know what's going on, hence the shares have to be suspended.

The company update given at 6:14pm yesterday says very little. Key bits;

... concerns were brought to the attention of the Board relating to invoicing and payroll practices within the Recruitment division.
Given the nature of the allegations, the preliminary results will not be published until the matters have been fully investigated.

The Board is confident that its policies in relation to these matters are appropriate, particularly given that these practices have been the subject of prior audits.

However, if the allegations are substantiated this could have a material impact on the Group and its profitability and until further investigation has been undertaken the Board cannot assess the potential materiality.


Materiality is usually defined as 10% of profits. So it looks as if the problems, if genuine, could be at least 10% of profits.

There doesn't appear to be any cash impact, as far as we know;

Other than that noted above, the financial position of the Company is unchanged, as reported on 8 January the Company expects to report net debt of c£63m for the year ended 31 December 2018 and can also report that in July 2018 the Company refinanced its £150m lending facilities.


My opinion - this sounds as if sales &…

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