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TRS the reject shop limited

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" Looks as if the Takeover merchants are reading your Posts,...

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madamswer

17,804 Posts.

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15/01/19

12:02

Post #: 37117853
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Originally posted by J.S.Mill ↑

Originally posted by madamswer
"Not fantastic, didn't make it to $11m which was top end of guidance and pretty much confirmed they are expecting a loss 2nd half."

It is not only a "not fantastic" update, but it is almost meaningless without any additional qualifying commentary.

For example, what were the main drivers of that $10.5m figure?
What was the sales growth in the half?
The like-for-like sales performance?
The Gross Margin?
Admin expenses?
Lower depreciation?

For all we know, they might have achieved their revised guidance figure by simply deferring a whole lot of expenditure, for which they would then need to play catch-up in subsequent financial periods.

And its not as if this kind of information would be considered commercially sensitive in the context of the current takeover bid, because in a little over a month's time, we will get to see all these relevant details, anyway, when the company will present a full set of its audited financial statements for the half-year.

So why not, as an act of transparency, provide some clarity around that $10.5m figure?

This company's management treats the owners of the business with utter contempt.

Originally posted by madamswer
"Not fantastic, didn't make it to $11m which was top end of guidance and pretty much confirmed they are expecting a loss 2nd half."

It is not only a "not fantastic" update, but it is almost meaningless without any additional qualifying commentary.

For example, what were the main drivers of that $10.5m figure?
What was the sales growth in the half?
The like-for-like sales performance?
The Gross Margin?
Admin expenses?
Lower depreciation?

For all we know, they might have achieved their revised guidance figure by simply deferring a whole lot of expenditure, for which they would then need to play catch-up in subsequent financial periods.

And its not as if this kind of information would be considered commercially sensitive in the context of the current takeover bid, because in a little over a month's time, we will get to see all these relevant details, anyway, when the company will present a full set of its audited financial statements for the half-year.

So why not, as an act of transparency, provide some clarity around that $10.5m figure?

This company's management treats the owners of the business with utter contempt.
Looks as if the Takeover merchants are reading your Posts, Madamswer. The Australian 15/1/19 ... "Allensford says The Reject Shop's trading update is incomplete and demands it disclose to shareholders the makeup of its sales performance over the critical holiday period."

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" Looks as if the Takeover merchants are reading your Posts, Madamswer. The Australian 15/1/19 ... "Allensford says The Reject Shop's trading update is incomplete and demands it disclose to shareholders the makeup of its sales performance over the critical holiday period."

It's pretty obvious thing to question, so a lot of people will be thinking along those lines; because anyone with a remotest sense of financial literacy will know that a single NPAT number, quoted in isolation, is almost meaningless unless its key determinants are also known.

Like I said, maybe the $10.5m NPAT figure was achieved because management deferred expenses by effectively locking away the corporate cheque book during the last 2 months of the half.

.

TRS Price at posting: $2.76 Sentiment: Hold Disclosure: Held
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