PEB - Pacific Edge Ltd

[winner69]

Current ageing of receivables

Amounts overdue but not impaired are as follows:
- $3,759,078 is within 0 – 180 days old
- $1,475,945 is within 181 – 365 days old
- $766,057 is over 365 days old but is still expected to be recovered


Plus the $612k recognised as impaired (conservatively of course)

[Balance]

Quick summary:

1. Sales increased by $3.1m - expenses increased by $7.6m

2. Cash outflow of $17.8m vs cash in the bank of $14.6m

3. Bad & doubtful debts of $3.25m.

4. Of receivables of $6.5m, $5.8m overdue but management confident of payment (!).

5. Of receivables of $5.7m as at March 2016, $4.2m overdue but management confident of payment, so no bad or doubtful debt provided for in F16 (!).

Wonder how the market would have reacted to the real sales numbers in the last 2 years now we know most of the sales were probably 'fictitious'.

[blackcap]

Quick summary:


Wonder how the market would have reacted to the real sales numbers in the last 2 years now we know most of the sales were probably 'fictitious'.

So the 35% increase in sales revenue is fictitious as well? I mean if the prior numbers were fictitious and this years also maybe just maybe they are raising sales revenue? However it will be interesting to see of this latest "revenue" how much is actually received in cash.... and how much is put into the 0-180 days category at the 6 month report. Also will be pertinent to see how much of the 0-180 now is rolled into the 180-365 and how much is actually received.

[Balance]

So the 35% increase in sales revenue is fictitious as well? I mean if the prior numbers were fictitious and this years also maybe just maybe they are raising sales revenue? However it will be interesting to see of this latest "revenue" how much is actually received in cash.... and how much is put into the 0-180 days category at the 6 month report. Also will be pertinent to see how much of the 0-180 now is rolled into the 180-365 and how much is actually received.

Bluntly - shocking accounting and auditing.

Goes against the key underlying accounting principles of conservatism, consistency, matching and materiality.

How the heck did the auditors signed off on the accounts?

[JohnnyTheHorse]

Bluntly - shocking accounting and auditing.

Goes against the key underlying accounting principles of conservatism, consistency, matching and materiality.

How the heck did the auditors signed off on the accounts?

Probably gave them a few free tests.

[Minerbarejet]

Receivables due FY 16 5,730,031.

This was one year ago.

Current FY 17 Receivables 365 days or older 766,057.

So remainder of FY 16 receivables have been paid
4,963,974

The current crop of receivables are from FY17 business plus 766,057

[hardt]

Someone please explain why and how the market values PEB at $200m...

[Schrodinger]

Did some rough calcs: $7.8M/10k = $780 per test (not sure where they get the $2,000+ ($1500 USD) on the presentation). They are getting 60% less than that.

Slide 11 CEO pres mentions $1500 USD ($2055 @.73) per test: some discounting going on here. Their market value calcs need to be reworked. Also need to present the actual market situation for USA. Who has test market share % wise of the 3.1 million.

Rough numbers put PEB @ 0.3% share in USA. 99.7% are going to others.

Basic message: get more commercial please (board/management issue?)

[stoploss]

Did some rough calcs: $7.8M/10k = $780 per test (not sure where the get the $1500 on the presentation). They are getting 50% less than that.

Maybe they do a "buy one get one free" with the testing places

[Meister]

I was expecting the price to drop significantly today but the sellers don't seem willing to budge.