In what’s probably my worst relative performance against the index on record, I thought I would seek solace by jeering at someone else’s mistakes.
Nick Kirrage, at the London Value Investor Conference 2016 gave an entertaining presentation: https://youtu.be/UsimT7YQymY . Nick is prominent for co-managing Schroder Recovery and Schroder Global Value.
In November 2015, I posted some snippets (https://goo.gl/ymGYKm) from their April 2015 portfolio. They had a new position in ACHL (Asian Citrus), a company I expressed grave concerns about. According to the figures on SharelockHolmes, they had a net cash position of £97m. This figure should have stuck out as being highly questionable.
On 28 September 2016 their shares were suspended, ostensibly temporarily. The next day, the company issued an RNS, stating that Mr. Man (you coudn’t make it up, could you?), a minority shareholder and director in a subsidiary, alleged inaccuracies in the records of some subsidiaries. There was also a similar allegation by Mr. Chen, whose name is not even slightly funny.
On 8 December, the company issued another RNS:
given the allegations referred to therein received by the Group’s auditors, the auditors were of the view that there is a need to reinforce their audit procedures and implement wider and more extensive tests on audit sampling in order to allow it to form its audit opinion on the Group’s consolidated financial statements for the year ended 30 June 2016.
I have not given a full listing of the RNSs it issued, just some potted highlights.
Basically, ACHL looks like toast to me.
Stay safe out there.