The Warehouse shows how to dial up a bigger profit

Listed retailer The Warehouse boosted its recent half-yearly profit by using a clever accounting manoeuvre in the treatment of the losses on pre-pay mobile phones.

It treated losses on mobile phones as assets, adding an extra $6.6 million to its profit.

The chain's profit in the six months to January 31 was up $11.3 million, or 31% on the corresponding six months of the previous year, but if the canny mobile phone treatment had not been used, profits would have been up only 12%.

Accountancy lecturer Alan Robb said the justification for treating trading losses as assets was questionable.

Full article

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

Seeka Increases Forecast Full Year Earnings Guidance
TEM - Ability to invest in derivatives
Devon Funds Morning Note - 16 September 2025
September 17th Morning Report
MPG - Recapitalisation Closes Oversubscribed, Raises $23.9m
IPL - Indicative Issue Margin Range for Notes Offer
TWG partners with Tata Consultancy Services
Spark announces leadership team changes
September 15h Morning Report
Tower updates FY25 guidance