Friday, February 13, 2015

Eniro annual report 2014


Eniro, annual, 2014, front page

The report arrived a couple of days ago and directly in combination with the report they decided to go out with an announcement concerning the issuing of more shares as well as the sales of bonds. The share price took another nose dive of maybe -50% or so.

The report in full you can find here. For my previous summary see Eniro report Q3 2014 and if you want to see the previous analysis of Eniro then please click on this link but a new one will arrive shortly.

Eniro, Eniro, Eniro... how much joy one can add into one report! So let us start off by taking a look at the income statement. Yet another year with significant decrease in revenue and to put it in figures then it becomes -17% or 590 million SEK. Bravo! Almost half of that decreased revenue was during the final quarter. The impairment of non-current assets is wonderful with -1.8 billion SEK which was already reported during Q3 but it is a figure that should not be brushed off very easily so it needs to be repeated a couple of times. In the end we shareholders ended up with -1.66 billion SEK which is around -16.2 SEK per share (current share price is around 4.5 SEK) meaning that I as a shareholder lost more of value in the company per share in comparison to what they are currently being valued to on the stock market. Bravo!


Eniro, income statement, 2014, annual


There are some things in reports that I think will always amaze me. One because they are presented there... and two because they apparently are being accepted... how can it be allowed for a company to report in full year 2013 a revaluation of pension obligation in the size of +233 million SEK to then in the next year report, 2014, report a revaluation in the size of -297 million SEK? Can someone explain how that is allowed?


cooking, books, Eniro, annual, 2014


Finally we shall take a look at a together pasted version of the balance sheet and the reason for my failed investment in Eniro which should not have been made. There are two issues here that I want to lift forward... one is the intangible assets... that is more or less the only thing they have in their books and to be frank it is bunk! In the future I will always look very closely on the tangible and intangible assets before I make an investment in a new company. Secondly, I already today look very closely if companies are living on their shareholders by issuing more shares but another crucial aspect is to look at the retained earnings. No retained earnings? Well... then for whom does the company exist? Because it is not for the shareholders.


Eniro, 2014, report, assets


Conclusion: Eniro is bunk as I were also properly told by a reader when I bought it! I will not join in the issuing of shares but I will also not sell my shares. The reason why I keep the shares is stupid but it is simply to make sure that I stay reminded in the future of the importance of tangible assets, intangible assets and retained earnings. My mistakes page: Investment Mistakes Made has now been updated.

3 comments:

Murmlos said...

Yup, Eniro is crap, acting in a declining market and has been mis-managed for some time.

Enjoy the friday and drink heavily to drown you sorrows in a Swedish manner and accept the loss and move on!

Murmlos said...

Oh btw, have you read #Vardepappret s analysis of Picanol (who owns Tessenderlo)

http://irvingsinvesteringar.blogspot.se/2015/02/picanol-en-belgisk-hidden-champion.html

If Luc Tacc manages to bring Tess around the way he did Picanol it might be a really good investment! The question is if you'd be better off owning Picanol directly!

Fredrik von Oberhausen said...

Hahaha, no, no drinking today but maybe tomorrow due to a celebration. Drinking due to stocks going up or down is not my approach.

I have not yet had the time to read the Värdepappret completely but I hope I will shortly. Looks very good and professional!

I decided that I would be better off with Tessenderlo which is beaten down aka contrarian enough for me.

Picanol is in my opinion on the peak of their business cycle and I have a wage memory of Luc also saying that in an interview which was why he wanted to step into a business with a counter-cyclic behaviour compared to his weaving machines and other textile companies that are the ones owning Picanol.