Huddled Group (LSE:HUD) Beneish M-Score : 13.43 (As of May. 26, 2024)

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What is Huddled Group Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score 13.43 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Huddled Group's Beneish M-Score or its related term are showing as below:

LSE:HUD' s Beneish M-Score Range Over the Past 10 Years
Min: -5.8 Med: -3.29 Max: 13.43
Current: 13.43

During the past 7 years, the highest Beneish M-Score of Huddled Group was 13.43. The lowest was -5.80. And the median was -3.29.

Huddled Group Beneish M-Score Historical Data

The historical data trend for Huddled Group's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Huddled Group Beneish M-Score Chart

Huddled Group Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-4.26

-3.29

-1.78

-5.80

13.43

Huddled Group Semi-Annual Data
	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial								-1.78	-	-5.80	-	13.43

Competitive Comparison of Huddled Group's Beneish M-Score

For the Entertainment subindustry, Huddled Group's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Huddled Group's Beneish M-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Huddled Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Huddled Group's Beneish M-Score falls into.

Huddled Group Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Huddled Group for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.2991

0.528 * 4.6674

0.404 * 12.4553

0.892 * 3.044

0.115 * 1.4319

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.5001

4.679 * 1.464434

0.327 * 0.2069

13.43

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was £1.91 Mil.
Revenue was £2.42 Mil.
Gross Profit was £-0.05 Mil.
Total Current Assets was £6.91 Mil.
Total Assets was £11.05 Mil.
Property, Plant and Equipment(Net PPE) was £0.21 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.48 Mil.
Selling, General, & Admin. Expense(SGA) was £2.81 Mil.
Total Current Liabilities was £0.64 Mil.
Long-Term Debt & Capital Lease Obligation was £0.02 Mil.
Net Income was £12.98 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-3.20 Mil.

Total Receivables was £0.48 Mil.
Revenue was £0.80 Mil.
Gross Profit was £-0.07 Mil.
Total Current Assets was £7.27 Mil.
Total Assets was £7.49 Mil.
Property, Plant and Equipment(Net PPE) was £0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was £1.64 Mil.
Selling, General, & Admin. Expense(SGA) was £1.85 Mil.
Total Current Liabilities was £2.14 Mil.
Long-Term Debt & Capital Lease Obligation was £0.03 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(1.914 / 2.423)	/	(0.484 / 0.796)
	=	0.78993	/	0.60804
	=	1.2991

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(-0.069 / 0.796)	/	(-0.045 / 2.423)
	=	-0.086683	/	-0.018572
	=	4.6674

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (6.906 + 0.209) / 11.05)	/	(1 - (7.268 + 0.003) / 7.485)
	=	0.356109	/	0.028591
	=	12.4553

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	2.423	/	0.796
	=	3.044

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(1.637 / (1.637 + 0.003))	/	(0.481 / (0.481 + 0.209))
	=	0.998171	/	0.697101
	=	1.4319

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(2.813 / 2.423)	/	(1.848 / 0.796)
	=	1.160957	/	2.321608
	=	0.5001

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0.018 + 0.643) / 11.05)	/	((0.028 + 2.136) / 7.485)
	=	0.059819	/	0.289112
	=	0.2069

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(12.981 - 0	-	-3.201)	/	11.05
	=	1.464434

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Huddled Group has a M-score of 13.43 signals that the company is likely to be a manipulator.

Huddled Group Beneish M-Score Related Terms

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Huddled Group (LSE:HUD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Huddled Group PLC (LSE:HUD) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

80 Mount Street, Cumberland Court, Nottingham, ENG, NG1 6HH

Website

https://www.letsexploregroup.com

Huddled Group PLC formerly Immotion Group PLC provides virtual reality platforms. The principal activities of the Group were: (i) the provision of virtual reality (VR) experiences to partner sites on a revenue share basis and in its own ImmotionVR sites; (ii) the sale of the Group's Let's Explore consumer product; and (iii) the sale of the Group's Uvisan UV-C cleansing products. Activities (i) and (iii) have been disposed of since the reporting date and are included in discontinued operations.