I'm sure you're just horrified by what your reading in these accounts.
Page 16 - A net profit of $23M for the year against a loss of $7.9M, I'm sure that put a big smile on your face, until you saw the details of how that figure was arrived at.
$10M profit from the sale of Hawksville. $19.3M profit from discontinued operations !!!
Amazing how accountancy works sometime, didn't do anything, just wrote back amounts onto the books ahead of the disposal that never took place.
Nevermind though Cloak, things get better, on page 17 interest bearing loans & borrowings drop from $60.7M to $36.3M, see they paid back lots of there debt your thinking, sadly look a little lower and you'll find in non current liabilities a new item called "interest bearing loans & borrowings" funnily enough for $28.5M.
So in effect the amount of money borrowed by the company increased in 2013, by $4.1M. There was no proper repayments of debt.
Which quite frankly is frightening, when you take into consideration the $10M they received from the Hawksville sale and as posted in my previous post on this thread the fact that they only drilled in effect 5.5 new wells in the whole of 2013.
Just imagine how bad things would have looked if it hadn't been for the stella performances of Robinson No1 and Cozart 19 during the year.
To be frank its a bigger horror show than even I was expecting.
I look forward to reading the bulls views on these accounts.
LOTM
AZZ Price at posting:
47.0¢ Sentiment: None Disclosure: Held
