COMPANY COMMENT: Accentuate share price becalmed amid woes
The company has had a torrid time and shows no signs of getting on the right track
Accentuate, the AltX-listed construction, flooring and chemicals company has had a torrid time for the past few years and there’s still no convincing sign that it’s finally on the right track. Little wonder the share price can’t seem to move much beyond 60c, a long way off its June net asset value (NAV) of 102c a share. Reported NAV reached a high of 124c a share in June 2016 but it had to be written down to 98c due to impairment requirements of the International Financial Reporting Standards. This resulted in the recent restating of the 2016 accounts. It seems the company’s new auditors were concerned about the treatment of head office management fees in performing the impairment calculations. The concerns prompted a R37m write-down of goodwill. Whether it was reflecting admirable optimism or a troubling inability to deal with reality, the board described financial 2017 as challenging before going on to say how the tough economic conditions presented the company with "a unique oppo...
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