By Tom Winnifrith, The Sheriff of AIM | Wednesday 28 June 2017
Disclosure: I own shares in one or more of the stocks mentioned. 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.
In a sense this is not that relevant as Advanced Oncotherapy (AVO) is within a couple of months of running out of cash and going tits up but on a point of principle I have written to the my very good friends at the Financial Reporting Council as there are aspects of Advanced's 2016 annual report and accounts which stink more than a pile of rotting kippers left out at a sewage farm in the scorching midday heat. The letter follows:
Request to Investigate the 2016 Annual Report & Accounts of Advanced Oncotherapy
The calendar 2016 accounts of AIM listed Advanced Oncotherapy came out on Monday 26 June 2017 and are wrong. I request a formal investigation and restatement. My concern is over what is claimed as current assets - a total of £12,541,001.
The largest item in current assets is "inventories" which in 2016 were £7,437,508 which I would take to be stock held for sale to external customers and which - to qualify as a current asset - will be sold within 12 months of the year end.
However if one looks at the accounts for 2015, 2014 and 2013 respectively we see a figure for inventories of £4,418,289, £1.1 million and £37,199.
However if one looks at revenues we see numbers for 2016 to 2013 of £0, £0, £106,378 and £68,916 respectively. Taking a charitable view of this we can thus see that 100% of the £1.1 million of inventory treated as a current asset ( that is to say to be sold within 12 months) as at 31 December 2014 is still - as we have not had any sales so far in 2017 - 30 months later unsold. Equally 100% of the 2015 inventory build of of £3.3 million is still unsold (18 months later) and thus one wonders how much of the 2016 inventory build of c £3 million will indeed be sold during 2017.
Treating these assets as current assets has demonstrably been shown to be misleading. I request a full investigation and that you force this company to restate accordingly.
I remain, as ever,
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