do you mean when we recieve revenue numbers on 22 Feb, not 22...

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dribiwik

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31/01/21

20:41

Post #: 50587723
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Originally posted by Tarvold: ↑

The term used by ZNO is not a recognised term nor does it give an accurate reflection on the situation.

ZNO receives orders all the time & the majority are dispatched immediately either due to credit terms or if payment has been received at the same time/up front .
As the 4C states they have inventory all around the world for fast fulfilment.

So the most likely reason for a significant amount of this value not being recognised as Revenue, & as such disclosing it as Revenue in the 4C, is that they are waiting for payment before dispatching.
If the amount not dispatched was immaterial they would not be using this term to fluff the 4C.
There is no guarantee that just because a customer places an order that they will ever pay for it & as such if they did not it would be reversed through a credit note & never be recognised as Revenue.

Therefore there is no clarity as to how much has actually been recognised as Revenue in H1 nor is there any that all of it ever will.

I don't know whether the CEO or the CFO writes this section of the 4C but they are incorrectly interchanging Orders & Sales as one & the same (which they most certainly are not) instead of Sales & Revenue (which are).
A Sale should not not recognised as a Sale until it is dispatched & in some cases depending on the terms of the contract it may not be until later.
Equally Revenue should not recognised as a Revenue until it is dispatched & in some cases depending on the terms of the contract it may not be until later.
To say 'I have made a sale' when receiving an order that is not legally binding is totally incorrect, that smacks of 'salesman's talk'.

So I would take all mention of 'Sales' & 'Orders' in the 4C with a grain of salt until we receive the H1 Revenue numbers on the 22nd Sept, & as such not draw any conclusions from them IMO.

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do you mean when we recieve revenue numbers on 22 Feb, not 22 Sept?

ZNO Price at posting: 97.5¢ Sentiment: None Disclosure: Held
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do you mean when we recieve revenue numbers on 22 Feb, not 22...

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