they included it in the gross profit reported for the financial year Just ended
they are now excluding it to get last years number down so the comparison looks better
last years gross profit included it and they then used that figure to compare against 2020
it’s merely smoke and mirrors to lift the gp comparison from 14 to 22 - as soon as I saw that exclusion I knew it didn’t reconcile to the accounts as it was included along with a number of other items - and hence I didn’t think the comparison they rushed out was going to satisfy many after perhaps a few rushed in on the headline
the gross profit now stated multiplied by 3 gives you a gross profit run rate which is only slightly higher than last years despite the grow being reported weekly - personally I thought that was very disappointing
with the amount of volume reported weekly many saw this and headed for the exit imo after the initial pop
it’s that simple - market isn’t going to fall for that
And as there is no guidance it’s a simple to calculate a gross profit run rate with the limited data they produce to see how last years figure could look against this year
seemed like a panic clarification following some heavy selling which isn’t in the big holders interest - some of which are already frequently selling with a large remaining balance and another major holder resigning before the agm who may also look to dump like fite seems to be doing is a risk
as I said I’ll wait for the accounts as it doesn’t seem to be ( bendigo terminals) as profitable as I expected
sure EY will help them with accounts - doesn’t mean much actually- they produce accounts as per accounting standards and what is considered a true and fair view - this is why there is an Army of analysts all over the globe that pull accounts to pieces
there will be nothing illegal with the way they have presented the accounts but again it’s every analysts job or investors job or traders job to look at the detail
So imo including trailing commission below the line imo is a Croc if we are being pushed to look at gross profit growth - ok it’s allowed but the true gross profit figure which comes out is then skewed and then skews comparisons to previous year - if you include all bendigo revenue in the top line which goes in part to calculating gross profit - imo the costs of that revenue - including trailing commission should be included in cogs
if you didn’t add it back then the margins looked better than reality
same with job keeper — 4.5 m basically added to the gross profit but it has nothing to do with normal operations - agains this lifted the final declared gross profit figure - margins etc
hence why I suggest ebit is a better metric for this business
good luck
TYR Price at posting:
$3.30 Sentiment: None Disclosure: Not Held
(20min delay)