Ann: Annual Report to shareholders, page-44

"Do you know what that $3.397m comes from? I had a quick glance at the report and didn't see it explained. Its a pretty big figure compared to last year and then also this years results."

I can't be sure, but if pressed for a view then I'd say it relates to an insurance claim in relation to one of their European operations, which I think I read about somewhere a while ago (but I couldn't tell you where).

But whatever it is, it obviously of a non-recurring nature, and because it is a material number, underlying earnings are nowhere near as strong as the company reports in its presentations.

Management does its credibility no service by not adjusting for it in the presentation (when it did so last year in terms of a $1.6m expense which was termed "Asset Impairment" in the P&L, while the notes to the accounts detailed it as Amortisation of Non-Current Asset (you could argue it's the same thing, but you could also argue it jolly well isn't). But whatever it is, to strip it out in presenting adjusted earnings, and then to choose to not strip out the even larger Other Income items, is not a good look.

Investors aren't dumb: they will notice that kind of uneven handed manner of presenting things and mark management down for it.

.