Equally on my watchlist having bought at £28 a few years back and sold out around current prices last year (before the big move to £120!) as it was too small a holding to move the needle. Great business
Always good to hear your thoughts Graham. Not sure I followed the point re fall in core revenue. Presume you mean vs expectations. Expectations I saw ahead of release were £383.6m.
So profits excluding royalties were down, even though core revenue was up. The general staff bonus should be linked to company profits from core activities, so my point was that it made sense to reduce the staff bonus.
Equally on my watchlist having bought at £28 a few years back and sold out around current prices last year (before the big move to £120!) as it was too small a holding to move the needle. Great business
Always good to hear your thoughts Graham. Not sure I followed the point re fall in core revenue. Presume you mean vs expectations. Expectations I saw ahead of release were £383.6m.
Hi Paul, thanks for the comment! I was thinking in terms of the profitability derived from core revenue, but I didn't word it correctly!
Assuming royalties receivable flow directly to PBT for the sake of simplicity, we have:
2021: Core Revenue £353m, PBT minus royalties = £(151-16)m = £135m
2022: Core Revenue £385m, PBT minus royalties = £(155-28)m = £127m
So profits excluding royalties were down, even though core revenue was up. The general staff bonus should be linked to company profits from core activities, so my point was that it made sense to reduce the staff bonus.
Hope this makes sense!
Best,
Graham