Piotroski factors provide some insight into the likelihood of financial distress by examining trends in key accounting metrics over two years.
If all nine are in a positive direction then a very low level of distress is indicated. Any score under five out of nine should make us wary.
The first factor is profits.
Daejan was profitable in the year to 31st March 2019 with £159m operating profit and £120m profit after tax (ignoring exceptional items).
In the six months to the end of September it made an operating loss of £8m after taking a £46m valuation hit on properties in NY. The loss after tax was £11m.
A Piotroski point is awarded for the annual accounts analysis but not for the half-yearly analysis.
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Prof. Glen Arnold
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