So, back from Europe a couple of weeks ago. Just one handshake deal (amongst others) paid for the trip 5 times over. It was also refreshing to get out and about after 2 years of COVID - you non-holders should try it !, instead of lurking around in an obscure corner of Social Media day & night.
I have ploughed through the Annual Report by now. An extensive read - although, out of 97 pages, about 50 of them were "how to be a Corporate Accountant", the Auditors covering their asses, explanatory notes and some cover pages. Nevertheless, this is THE most thorough and detailed Annual Report that I have ever seen from this company ! This time, they have laid it all out there ! As I have asked for several times, they have finally provided the accounts from each Division (via geographical areas) as well as detailed accounts of their dealings with Blumenthal and Everblu. Alot of it doesn't make for pleasant reading however, this is a warts and all expose of what is going on over recent times.
Now, I'm not going to crunch numbers on this report because I have given my analysis in the previous Quarterlies ........... for those that have been paying attention. Instead, I want to point out the cultural shift that is obviously occurring inside Creso. Has no one else noticed this ??? The Annual Report was released alongside a lengthy Corporate Governance Statement - one which is legally binding. In this report - and the previous 4C - it was stated out loud, and several times, that the much criticised "Administration & Corporate (Head Office) Costs" must be reigned in and it is a high priority of the new BOD - the Americans in particular. It's also the first time that I have seen a line-by-line renumeration report - cash, shares, bonuses, the lot ! And other corrections have been admitted to up-front, like the Impairment Assessment - whereby they have bought some of their forecasts to a more realistic level.
In business, like in life, the only way to affect change is to openly admit to past mistakes, expose them in their raw (and often embarrassing !) form - then set about repairing the problems. The Announcements of late are visibly going down that path.
Creso even made a Gross Profit for the year ! - but it was absolutely squashed by the glaring problem in the Expenses column. There is no doubt that the Americans are in charge nowadays and Blumenthal is a passenger - I'll go further in to that at another time. I even bet Ellingford is relieved at the fresh approach. Improvements to governance are under way - the share price will follow.
CPH Price at posting:
5.7¢ Sentiment: Buy Disclosure: Held
