Communications
A score of 25/60 is top quartile for Iron Blue, which suggests fertile ground for shorting - accounting red flags include a high degree of discretion around revenue recognition, stripped out asset impairments (reducing future D&A expense), regular stripped out redundancies & other costs, new capitalisations of development expense exceeding amortisation by a material amount each year, reduced provisioning in 2021 for bad debtors, inventories and book returns and an unusually high gross cash balance. Regarding governance, Iron Blue notes that PSON is set to change auditor in 2022 after 25 years with PwC.
Edition: 140
- 22 July, 2022