3512 days ago
I have been flagging up what a joke the accounts of AIM listed Chinese POS Geong International (GNG) are for more than two years but amid the Naibu (NBU) excitement I overlooked the fact that Geong served up its own dogs dinner of a statement on Friday. Its accruals policy makes that of Quenron look conservative.
Turnover in the year to March 31 2014 was £9.5 million (£9.6 million) and pre-tax profit was unchanged at £100,000. But just look at trade receivables - £20.073 million of which £14.265 million was just accrued, i.e. not even invoices for. And this is a Software, largely SAAS Company! You what? We are being expected that sales equating to more than 220% of annual revenue are unpaid which is hardly surprising as 70% of that is just accrued – i.e. booked as revenue but not yet invoiced.
