REFS is
a mine of invaluable information for the private investor.
Selecting shares without its help is like trying to
clap with one hand tied behind your back.
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Annualised values
A standard length accounting period is taken
to be 12 months or 52 weeks in Company REFS.
When a company changes its financial year-end,
a non-standard accounting period arises, and this is denoted
by a suffix against the column heading which shows the period
length in months.
To enable different periods within the 7-year
performance table to be reasonably compared, all relevant values
for a non-standard period are arithmetically converted to an
annualised basis; this includes the consensus forecasts. For
example, a turnover value of £60m for a reported 9-month period,
becomes £80m on an annualised basis.
Annualised values must, however, be regarded
with caution, since they can magnify seasonal variations in
performance which a year-end change is often intended to smooth
out.
The detailed individual broker forecasts, shown
separately, are not converted in this way, and remain as reported
by each broker subject to any adjustment for share capital
charges; attention is drawn to footnotes describing the circumstances
and period to which individual forecasts relate. Similiarly,
values given in the shaded panel for last historic normalised
eps,turnover, and pretax profit, remain as reported by the
company. When a suffix appears, indicating a non-standard
period and its length in months, these three values are not
annualised.
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