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Sefton: Those misleading results -2

Tom Winnifrith
Tuesday 21 May 2013

I am still seething at how fundamentally AIM Cesspit posterboy Sefton Resources (SER) tried to hoodwink the market with the way it presented its results yesterday. In a near 25 year career I have never seen anything like it. It is truly scandalous.

I analysed the results in detail here.

The key point is that Sefton issued an RNS which it admitted was not IFRS compliant in that it omitted all the notes to the accounts. The full statement appeared only on its website. Only real anoraks like me bothered to read it. 99.9% of investors just read the RNS.

Thus the RNS boasted of how Sefton was profitable (albeit only just). Nowhere in the RNS was it mentioned that a material amount of the cost of employing staff, directors and consultants was capitalised (i.e. added to the balance sheet as an asset rather than run through the P&L). You only discover that if

 

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About Tom Winnifrith
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Tom Winnifrith is the editor of TomWinnifrith.com. When he is not harvesting olives in Greece, he is (planning to) raise goats in Wales.
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