Monday 21 August 2017 The one stop source for free breaking news, expert analysis, and videos on AIM and LSE listed shares

AIM dog Avanti Communications - FRC forces accounting changes after Tom Winnifrith complaint - another thank you for the Sheriff

By Tom Winnifrith, The Sheriff of AIM | Tuesday 6 June 2017

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

I have today received a letter from the Financial Reporting Council about a complaint I made about the uber dodgy accounts of drowning in debt heading for insolvency Avanti Communications (AVN). You will remember that Avanti did 2 transactions which generated cash in of nil and cash out of $14 million and booked that as a sale of $25 million on a 100% EBITDA margin.

I argued that this was misleading. Avanti defended its case and has managed to avoid having to restate. However, as the letter from the FRC makes clear it was forced to make changes to the way it presents the matter in its accounts and also to disclose management assumptions which underly this "profit" booking. When those are shown to be ludicrous by events that will be the rope to hang the bombastic prick of a CEO David Williams and his board.

This is not the total victory I had hoped for but in forcing Avanti to change the way it presents this strange transaction it is a win none the less. And it is now the third win I have had with crap AIM companies and the FRC (Eden Research and Quindell being the others).

Once again the FRC thanks me for my efforts. To certain pious share bloggers who have never had any such victories but claim to be pure as the driven snow and question my ethics and what it is I do, I say "fuck you."

As for Avanti, good companies are not forced to represent their accounts by the FRC. My target price remains 0p.

You can read the FRC letter HERE

Filed under:

Never miss a story.

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

More on AVN


Comments are turned off for this article.

Site by Everywhen