Small Cap Value Report (Thu 21 Mar 2024) - XPF, JDG, XLM, HSW. Quick: GTC, POLN, SBDS
Good morning from Paul amp; Graham.
Right to reply - XP Factory (LON:XPF) - we're always happy to talk to companies if they think we've got something wrong in the SCVRs. I had a call yesterday from a rather miffed CEO of this experiential leisure company. He said that the deficit on the lease entries on its balance sheet was due to netting off landlord contributions (creditors - for rent-free periods and reverse premiums) against the Right of Use Asset. That sounds plausible, so I've asked for more information, and will publish that here when it comes through. Just wanted to flag it straight away.
Here we are, XPF's CFO explains the lease entries - many thanks for this - it certainly puts a much better picture on the lease entries on XPF's balance sheet. So my apologies for jumping to an incorrect assumption about these entries in yesterday's report. I think we're all learning as we go along re IFRS 16, which almost everyone agrees is a terrible accounting standard, a big backward step!
Subject: Response to Paul Scott's commentWhilst I will leave you to form you own opinions on the XP Factory performance, there is at least one factual...