T-D
30 Nov 2016
Re: RNS - agreement cancelled It was loss making. They have kicked it into touch so a good move in my book. If anyone was brave enough to buy at this mornings lows, well done.
Global Nomad
30 Nov 2016
RNS - agreement cancelled sudden drop in price after announcment - clearly the idea of making a loss on a big contract was not attractive but how will this affect IEH, is it all bad?
Artji
23 Nov 2016
GN, you're very welcome (nm)
Global Nomad
22 Nov 2016
Re: RNS results thanks again for the very thorough and clear explanation. It always feels nicer to get a reply from someone rather than just an answer from googling. ( I am a lecturer so a little biased in that regard 
)
Artji
22 Nov 2016
Re: RNS results Good morning Global Nomad,They've removed it because the balance sheet, by law, needs to show a fair and reasonable value of the assets they hold, and as they don't expect to be able to use the tax asset in the foreseeable future, they've decided they can't continue to attribute any value to it. This is one of those areas where judgement and estimations come into play in accounting, it's not like holding cash, which is very easy to attribute a value to.I also suspect that it may be part of a kitchen-sinking exercise linked to the new CEO and the restructuring. It's quite common at such times to make big write-downs of such things as IP, deferred tax assets etc, getting all the bad news out of the way early to avoid having these write-downs affecting future results. I think it also means that if in future they do judge that the asset can be used then revaluing it will boost profits (I imagine it will be shown as a positive exceptional item on the P&L account).So they still have the asset and in future if they start to make profits they can once again place a value on it. I'm not sure how many years after making a loss a company can still offset those losses against future profits, but I think it's quite a long time (a decade or more?).If you were a company then you could show the amount of tax you could potentially save by using your previous losses as an asset on your balance sheet as long as you were still engaged in activity that could enable you to use those losses to offset CGT, but if you stopped trading then that asset would become worthless and your balance sheet would have to reflect that. That's not quite the same situation as IEH but the principle is similar. Something has a value only if there's a reasonable expectation that the value can be realised.Another example of a time when the deferred tax asset may again be valued is if another (profitable) company makes a bid for IEH. buying IEH they could then use IEH's previous losses to offset their future profits, so in deciding on a price they would attribute a value to those losses, based on how much tax they thought they could save by using the asset.Hope this hasn't just confused the issue further, Artji
Global Nomad
22 Nov 2016
Re: RNS results thanks Artji,what advantage is there in removing it? is there a limit to how long they can utilise the debt to offset tax? I still have some big share trade losses from a few years ago that i am reporting for when i need to offset some CGT - maybe not on this share....
Artji
21 Nov 2016
Re: RNS results Hi GNThe deferred tax asset is based on the losses they've accumulated over the years. If they ever start making a profit they can offset these prior losses against it and so reduce their tax bill (in IEH's case I would guess they have enough losses to mean they won't pay tax on profits for a long time.They've de-recognised them as there is considerable doubt that, in the foreseeable future, they'll make sufficient profits to be able to use this asset. If you look on the balance sheet, in non-current assets, last year it showed £21.9m of deferred tax assets, this year it is zero.Hope this helps, Artji
T-D
21 Nov 2016
Re: Little confidence Revenues are up, that has got to be better than down. Still a lot of work to do but going in the right direction imho.GLA
adamstein25
21 Nov 2016
Little confidence I've just left the conference call and results aside, found it rather worrying that the CEO read from the slides distributed earlier today. Anyone could have done that, where's the passion and motivation?
Global Nomad
21 Nov 2016
RNS results sobering reading. It sounds like the changes to approach are getting some traction but it all feels rather hopeful rather than positive. Someone will have to explain "de-recognition of the deferred tax asset" to me. not expecting a good reaction from the market but these days its hard to tell.
adamstein25
18 Nov 2016
Ghost Town It's all very quite in the discussions and not a lot of news from the company. Any expectations from Monday's results? Any views on what's in store for investors? SP movement?
Dolphy
18 Nov 2016
Re: spread 20% Having a bubble bath!
Dolphy
24 Oct 2016
spread is ludicrous
reader61
03 Oct 2016
Re: They need to update us I was wrong, there is an update but it didn't look good, cash burn £1.6M month EBITDA of £1.1M, revenues up to 90M. There's £20M left in the tank so good for another year maybe?? Now if only they can extract some profit from the revenue!
reader61
03 Oct 2016
They need to update us So why haven't they? Does anyone know the current cashflow/revenue/ebit stats as I'm worried this is a drum roll to the end. Hoping desperately I'm wrong but not talking to investors only leads to speculation. The recent event whilst high on innovation, ideas and potential didn't give enough info on reality of day to day. I think if it hits the buffers the ip will be worth a lot so all may not be lost but suspect the business angel that provided the £10M is going to snap this up at pennies, lets face it @ £10M they must own it anyway.
