2019-08-01_Shares_Magazine

 | SHARES 01 August 2019

EDUCATION

ůŽƐƐŽĨάΘϳ͘ϯŵ͘dŚĞLJĞĂƌďĞĨŽƌĞ

ŝƚƌĞƉŽƌƚĞĚĂŶĂĚũƵƐƚĞĚƉƌŽĮƚŽĨ

άϮ͘ϯŵ͕ĐŽŵƉĂƌĞĚƚŽĂƌĞƉŽƌƚĞĚ

ůŽƐƐŽĨάϳϮ͘Θŵ͘

The company has stripped out

ƐŝŐŶŝĮĐĂŶƚƌĞƐƚƌƵĐƚƵƌŝŶŐĐŽƐƚƐŝŶ

ŝƚƐĂĚũƵƐƚĞĚĮŐƵƌĞƐ͕ďƵƚ>ŝďĞƌƵŵ

points out that Mothercare has

ďĞĞŶƌĞƐƚƌƵĐƚƵƌŝŶŐĨŽƌƚŚĞƉĂƐƚ

three years, and while it would

appear that restructuring is

nearing a conclusion, no end

ĚĂƚĞŚĂƐďĞĞŶĐŽŶĮƌŵĞĚ͘

ŶŵĞƌŝĐĂŶƐƚƵĚLJďLJ

WƌŽĨĞƐƐŽƌƐWĂƵů'ƌŝĸŶĂŶĚ

ĂǀŝĚ>ŽŶƚƐƵŐŐĞƐƚƚŚĞĂĚũƵƐƚĞĚ

ĞĂƌŶŝŶŐƐŽĨƐŽŵĞĐŽŵƉĂŶŝĞƐŝŶ

the US can be manipulated, and

ĂƌĞĂůƐŽŽŌĞŶƐLJŵŵĞƚƌŝĐǁŝƚŚ

ŽŶĞͲƟŵĞŐĂŝŶƐƌĞŐƵůĂƌůLJŝŶĐůƵĚĞĚ

ďƵƚŶŽƚŽŶĞͲƟŵĞůŽƐƐĞƐ͘

KŶĞĮƌŵŝŶƚŚĞh<ǁŚŝĐŚŚĂƐ

been publicly called out on such

an issue is De La Rue (DLAR) , the

banknote and passport printer

ǁŚŝĐŚŚĂƐŚĂĚĂĚŝƐŵĂůƟŵĞ

ĂŌĞƌŝƚůŽƐƚĂĐŽŶƚƌĂĐƚƚŽ

ƉƌŽĚƵĐĞƚŚĞh<͛ƐƉŽƐƚͲƌĞdžŝƚ

ƉĂƐƐƉŽƌƚƐ͕ŝƐƐƵĞĚĂƐƚƌŝŶŐŽĨ

ƉƌŽĮƚǁĂƌŶŝŶŐƐĂŶĚŝƐƐƟůů

ĂǁĂŝƟŶŐάϭΘŵŽǁĞĚďLJƚŚĞ

Venezuelan government.

PUSH BACK

dŚĞĐŽŵƉĂŶLJĞŶƌĂŐĞĚŽŶĞŽĨŝƚƐ

ƐŚĂƌĞŚŽůĚĞƌƐ͕ĂĐƟǀŝƐƚŝŶǀĞƐƚŽƌ

ƌLJƐƚĂůŵďĞƌ͕ǁŚĞŶŝƚĐůĂŝŵĞĚ

ŝŶŝƚƐĨƵůůͲLJĞĂƌƌĞƐƵůƚƐŽŶϯϬDĂLJ

ƚŚĂƚƉĞƌĨŽƌŵĂŶĐĞŚĂĚ͚ďƌŽĂĚůLJ

ŵĞƚŵĂƌŬĞƚĞdžƉĞĐƚĂƟŽŶƐ͕͛ǁŝƚŚ

ĂĚũƵƐƚĞĚŽƉĞƌĂƟŶŐƉƌŽĮƚƌŝƐŝŶŐ

ςйƚŽάςϬ͘ϭŵ͘

In an update on holdings in its

ĨƵŶĚ͕ƌLJƐƚĂůŵďĞƌƐĂŝĚ͚͗ΊĞ

>ĂZƵĞ͛Ɛ΁ĐůĂŝŵƐĚŝĚŶŽƚƌĞŇĞĐƚ

ƚŚĞƌĞĂůŝƚLJƚŚĂƚƚŚĞάςϬŵŽĨ

ŵĂŶĂŐĞŵĞŶƚͲĂĚũƵƐƚĞĚŽƉĞƌĂƟŶŐ

ƉƌŽĮƚƐŝŶĐůƵĚĞĚĂŶƵŶĞdžƉĞĐƚĞĚ

άϳŵďĞŶĞĮƚĨƌŽŵĂŶĂĐĐŽƵŶƟŶŐ

standard change, and ignored an

άϭΘŵƉƌŽǀŝƐŝŽŶĐŚĂƌŐĞƌĞůĂƚĞĚ

ƚŽƚŚĞƐƵƉƉůLJŽĨďĂŶŬŶŽƚĞƐƚŽ

Venezuela.’

/ƚĂĚĚĞĚ͚͗tŚĞŶǁĞ

ĐŚĂůůĞŶŐĞĚĐŚŝĞĨĞdžĞĐƵƟǀĞ

DĂƌƟŶ^ƵƚŚĞƌůĂŶĚĂƐƚŽǁŚLJƚŚĞ

ƐŚĂƌĞƉƌŝĐĞĨĞůůƐŽĚƌĂŵĂƟĐĂůůLJŝĨ

ŵĂƌŬĞƚĞdžƉĞĐƚĂƟŽŶƐŚĂĚďĞĞŶ

ďƌŽĂĚůLJŵĞƚ͕ŚĞƌĞƉůŝĞĚƚŚĂƚ͗

“the analysts had got it wrong”.’

'ŽŝŶŐŽŶƚŚĞ/ŶƚĞƌŶĂƟŽŶĂů

&ŝŶĂŶĐŝĂůZĞƉŽƌƟŶŐ^ƚĂŶĚĂƌĚƐ

;/&Z^ͿĮŐƵƌĞĂƐŽƉƉŽƐĞĚƚŽƚŚĞ

ĮŐƵƌĞĂĚũƵƐƚĞĚďLJĞ>ĂZƵĞ͕

ƚŚĞĐŽŵƉĂŶLJŵĂĚĞĂŶŽƉĞƌĂƟŶŐ

ƉƌŽĮƚŽĨάϯϭ͘ρŵŝŶƚŚĞLJĞĂƌƚŽ

ϯϬDĂƌĐŚ͘

/Ŷ'ƌŝĸŶĂŶĚ>ŽŶƚ͛ƐƐƚƵĚLJ͕ƚŚĞLJ

ĨŽƵŶĚƚŚĂƚĮƌŵƐŝŶƚŚĞh^ǁĞƌĞ

ĐŽŶƐŝƐƚĞŶƚůLJƌĞƉŽƌƟŶŐĂĚũƵƐƚĞĚ

ĞĂƌŶŝŶŐƐŽŶůLJĂůŝƩůĞĂďŽǀĞǁŚĂƚ

analysts predicted, but changed

ƚĂĐŬĂŌĞƌƉĞŽƉůĞďĞĐĂŵĞ

suspicious.

Now, they claim, some

companies across the pond are

ƵƐŝŶŐĂůůƚŚĞĂĐĐŽƵŶƟŶŐƚƌŝĐŬƐ

to get their earnings as high

as possible, so they can’t be

ĂĐĐƵƐĞĚŽĨŵĂŶŝƉƵůĂƟŽŶ͘

ĐĐŽƌĚŝŶŐƚŽƚŚĞƐƚƵĚLJ͕ŽŶ

an earnings per share basis,

ďĞƚǁĞĞŶϮϬϬϬĂŶĚϮϬϭςĂ

ƋƵĂƌƚĞƌŽĨ^ΘWρϬϬĐŽŵƉĂŶŝĞƐ

ďĞĂƚĂŶĂůLJƐƚƐ͛ĞdžƉĞĐƚĂƟŽŶƐ

when using adjusted earnings.

ƵƚƚŚĂƚƉĞƌĐĞŶƚĂŐĞĨĞůůƚŽũƵƐƚ

ϭϬйǁŚĞŶƵƐŝŶŐƚŚĞŝƌ'W

;'ĞŶĞƌĂůůLJĐĐĞƉƚĞĚĐĐŽƵŶƟŶŐ

WƌŝŶĐŝƉůĞƐͿƌĞƐƵůƚƐ͘

So while adjusted earnings can

ďĞůĞŐŝƟŵĂƚĞ͕ŝƚ͛ƐĂůǁĂLJƐǁŽƌƚŚ

delving deeper into a company’s

accounts and not just taking their

ĂĚũƵƐƚĞĚǁŽƌĚĨŽƌŝƚ͘

ĚũƵƐƚĞĚŽƉĞƌĂƟŶŐƉƌŽĮƚ £60.1m

EXCEPTIONAL ITEMS:

^ŝƚĞƌĞůŽĐĂƟŽŶĂŶĚƌĞƐƚƌƵĐƚƵƌŝŶŐ ;άκ͘ΘŵͿ

>ŽƐƐŽŶĚŝƐƉŽƐĂůŽĨďƵƐŝŶĞƐƐ ;άϮ͘ςŵͿ

ĐƋƵŝƐŝƟŽŶĐŽƐƚƐ ;άϬ͘ϮŵͿ

Pension costs ;άϮ͘ϮŵͿ

Venezuela bill provision ;άϭΘ͘ϭŵͿ

ŵŽƌƟƐĂƟŽŶ ;άϬ͘ϳŵͿ

KƉĞƌĂƟŶŐƉƌŽĮƚ £31.5m

Source: De La Rue

De La Rue results to 30 March 2019