Report by Iron Blue Financials
Accounting red flags include stripped out broadly defined restructuring expense (44% of PBT adj over the past six years), share-based payments and acquired software amortisation. FY22’s +11% organic sales growth is difficult to reconcile against annual report acquisition revenue contributions disclosure (implies negative organic growth), cross-checked by subsidiary accounts analysis. Headline net debt excludes £29m contingent consideration while floating debt implies c.£2m extra net finance charge with the rise in SONIA since year end. Iron Blue also notes sub-optimal governance with non-independents controlling the board.