Thank you. I hope they're right, but it's difficult to verify these statements. Bell Potter says, "The record cash receipts ($73.5m) are a better reflection of the significant number of contracts won in CY23 than the revenue result due to the delayed recognition of certain revenues". And yet, where are these contracts won in CY23? The announcement I referred to above ($11m in January) aligns with the half-yearly for June:
And the reference to "delayed recognition" is a concern. Do they not book the revenue when the order is placed? Clearly not, because the half-yearly contains this perplexing statement: So if they don't book the revenue when the sale is made, when do they book it? This statement implies that they book the revenue when the goods are delivered, which would imply that they should have an "orders pending" provision somewhere in their accounts, but there's nothing. The "provisions" liability in the balance sheet relates to leave.
Well, full year results and accounts should be out in the next week or so. Perhaps they really did have a stellar 2023, but at the moment it concerns me that they might have spent 2023 collecting the cash from a stellar 2022.
DRO Price at posting:
70.0¢ Sentiment: None Disclosure: Not Held
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