Ann: Injection of funds in PFSUK safeguarding accounts, page-21

@Stweeve
Appreciate your well articulated comments, but I think EML have worded their statement very carefully and the end result may be different.

Subject to audit, there is not expected to be an impact to EML’s profit and loss account as the issues related to the period prior to acquisition.
=> this has not yet been approved by the Auditors and arguably if there are claims against these monies, it has to pass through P&L somewhere now (PFS is a fully consolidated entity and EML has assumed all legal liabilities associated with that entity). As others have indicated, it seems that this amount is likely to be quite small and probably won't even get noticed when tied up with EML's balances)

EML considers that, as the issues relate wholly to the period prior to its acquisition, any and all financial consequences are the responsibility of the previous owners of the PFS group.
=> well no......EML is having to remediate the issue wrt CBI and they cannot adjust the price they paid for PFS now.......there is a chance that the previous owners will reimburse any claimed monies, but hard to see the previous owners drop the price by 26m or hand over 26m to sit in an account for 5 yrs. I'm sure PFS must have relied on some professional advice to determine when they claim the money so in order to avoid legal action over diff advice, I think they will just work something out (26m is now....that will reduce over 5 years, so the numbers are not big.......and you don't want a decent sized shareholder offside)

I think this whole announcement was to get some brownie points with the FCA, but also not concern shareholders with the CBI review happening at the same time.

Big picture......EML continues to win business and as the EU and UK open up, that ticket clipping will continue......focus on the big picture and ignore the small stuff that ultimately is not going to impact the core business