Air Partner Share Discussion Threads

[lbo] 03/4/2018 11:40

Interesting you would rather attack and question me rather then the company who has just admitted accounting errors! Perhaps it's you who is an employee? Hopefully not one of its creative accounting department!

[masurenguy] 03/4/2018 11:31

You just keep repeating the same information and, since you are clearly a troll with a very long standing vendetta against AP (a fired employee perhaps?), you really have no credibility here.

[lbo] 03/4/2018 11:28

Every shareholder who bought into that share price rise has been duped and misled by the company. They were already trading on a premium valuation of over 17x and now have also been exposed as having accounting irregularities supporting that valuation.

[lbo] 03/4/2018 11:18

How long do the accounting mistakes go back? "since financial year 2010/11"

[masurenguy] 03/4/2018 10:56

LBO, you have been a consistent bear here for the past two and a half years during which time the shareprice has more than doubled and dividends of almost 30p have been paid.

[edmondj] 03/4/2018 10:49

Certainly it begs the question, what is reasonable to expect of audits.

[lbo] 03/4/2018 10:47

Probably because the large shareholders like Castleford who were duped and bought in recently have no market to sell out to nowhttp://www.proactiveinvestors.co.uk/companies/news/194142/air-partner-dives-after-uncovering-accounting-errors-194142.html

[lbo] 03/4/2018 10:43

The term of office of Mazars will end at the close of the AGM. Mazars have provided a written statement, confirming that there are no circumstances relating to the change in auditor which need to be brought to the attention of shareholders. As required, this statement is hereby circulated to all shareholders and is reproduced exactly, as follows:" In accordance with section 519 of the Companies Act 2006, we confirm that there are no circumstances connected with our ceasing to hold of office that we consider should be brought to the attention of the Company's members or creditors."On behalf of shareholders, the Board wishes to thank Mazars and looks for ward to working with Deloitte in the future.

[masurenguy] 03/4/2018 10:34

Let's get some real perspective here.
1. It was immediately marked down by 25% at the open
2. The number of shares traded in the first two and a half hours was only 357,000.
3. The number of shares traded does not evem account for 0.7% of the shares in issue.
4. The average transaction was 3250 shares so these are small retail investors spooked by the RNS.

[steeplejack] 03/4/2018 10:29

I'm not comparing it with Globo,what I'm saying is some auditors are bloody incompetent.

[masurenguy] 03/4/2018 10:28

It is utterly absurd to even begin to compare this situation with Globo. The former was a fraud wheras the AP situation is an accounting error on a well established and kosher business model

[topvest] 03/4/2018 10:23

Yes, the market appears to be treating it as a one-off for now. To be honest I was thinking their sector was probably top of cycle anyway as its a cyclical business. Will put on my watch list. Should have sold after the positive trading update, but dithered.

[masurenguy] 03/4/2018 10:23

This is primarily an accounting issue which will result in some restatement of prior year profits. It should have no impact upon cash or current cashflow.

"Following preliminary investigations, the issue principally relates to the collection of receivables from customers and accounting for uncollected amounts since financial year 2010/11. Certain uncollected receivables were inappropriately offset against deferred income rather than being expensed to the income statement in the appropriate financial year. This is a non-cash item and has no bearing on the Company's cash balances.

Whilst the investigation continues, the Board presently understands that the cumulative amount between financial year ended 31 July 2011 and the financial year ended 31 January 2018 is approximately £3.3m and a significant proportion of this relates back to 2011. At no point was a customer, operator or supplier impacted or disadvantaged. Further, the Group continues to maintain a strong net cash position."

This obviously raises some issues in relation to the competence of the CFO & FC, which need to be addressed and clarified. An uncollected receivable usually becomes a bad debt if the customer goes bust or if it is determined to be legally uncollectable. So far there is no other evidence to suggest that this might be the harbinger of other accounting issues.

[lbo] 03/4/2018 10:21

So sounds like shareholders could have a legal case also against the company. What about the recent institutions who bought in? They won't be happy with this and will be selling out and/or could take a legal case against them. Solicitors will be queuing up around the block to profit off this fiasco

[steeplejack] 03/4/2018 10:19

I'd like to think that they'd been some alteration in accounting procedures since otherwise scrutiny of accounting post 2011 might find that this practise was employed in subsequent years.Something about planes,accounting from Rolls Royce to BAE has always been a grey area.Maybe what was consideredOk accounting back in 2011 is now not acceptable.Thats the best light one can throw on the matter.When you have instances like Globo,questions asked about Autonomy etc,you really begin to wonder whether auditors are rather like shady garages handing out dodgy MOT certificates.

[steeplejack] 03/4/2018 09:47

Very good points.When does an uncollected receivable become a bad debt?Sold two thirds.The current markets don't lend themselves to hoping for the best.

[haroldthegreat] 03/4/2018 09:47

I trust Deloitte will not charge for correcting the items that should have been picked up first time around. Were they auditing the company at that time ?

[topvest] 03/4/2018 09:27

I've sold out first thing. Bit irritating as was pondering selling a few weeks back. Doubled my money so not too bad, but often better to get out straight away when there is a hint of something nasty. Why did I sell?

Well, it looks like a fraud rather than an error to me. The use of the words "inappropriately offset" rather than "incorrectly offset" imply this. Someone journaled the bad debts into the large deferred income balance sheet account as a debit. It does seem odd that management could have a bad debt of that magnitude without a P&L hit unless they had received some cash up front from the same customer that had to be repaid.

If you look at the 2011 accounts they had a restatement for accounting errors then and so this is not the first time Air Partner has been caught out on accounting errors. Was the CFO the Financial Controller at that time and Biffa was the CEO. So, did they know about it?

If it's fraudulent what else is going to come out of the investigation? The 2011/12 dividends were also marginal in terms of distributable reserves as well so there is a possibility of an illegal dividend albeit I think its just about OK from what I can see. Maybe its a one-off, but the use of the word "predominantly" and continuing investigation clouds the picture. One thing is for sure is that the results are going to be delayed whilst Deloitte crawl all over this now. Resignations will likely follow.

[lbo] 03/4/2018 08:38

"At no point was a customer, operator or supplier impacted or disadvantaged" also sounds like someone is or could be considering legal action against them

[lbo] 03/4/2018 08:36

"the investigation continues" sounds ominous and like more skeletons to be found!

[steeplejack] 03/4/2018 08:21

Understandable reaction but the analysts are going to have to put flesh on the bones by talking to the company this morning.The price at 9 o clock will give a better idea of how this is going to bed down.Well, at least this isn't an AIM stock.

[haroldthegreat] 03/4/2018 08:19

Can we expect a refund of fees from the auditor ?

[trident5] 03/4/2018 08:19

Spacedust - no way.

[spacedust] 03/4/2018 08:17

Second tank coming. 80p

[r ball] 03/4/2018 08:13

I understand but it's all cash related at the end of the day. To suppose otherwise is just kidding yourself.. r ball FCA.