Ann: CFO Appointment, page-29

"Nick - I always go straight to the cash flow statements - it's well worth understanding these and what to look for because even these are now prepared in ways intended to mislead."

Something else worth looking at is the deferred tax balances and movements - provided you have the time and perseverance to work out exactly what they have done each reporting period.

The difference between the profit they report for income tax purposes and the financial accounting profit reported to the exchange can sometimes reveal things which don't appear anywhere else in the annual report.

SGH would have done well to have looked at the Quindell deferred tax situation before signing up to buy that business.