13th Oct 2024 10:48
(Alliance News) - Smith & Nephew PLC has received scrutiny from an equity research firm for inflating its profit margins, The Sunday Times reported.
The newspaper on Sunday reported that Dragoneye Research has accused the medical devices maker of using accounting techniques to boost its trading profit margin. The margin stood at 17.5% in 2023, rising from 17.3% in 2022.
According to The Sunday Times, Dragoneye said accounting moves, such as the deferral of costs and inadequate reporting write-offs, boosted that margin outcome by 1.7 percentage points.
The Sunday Times reported that Smith & Nephew said it was "absolutely not the case" that it used accounting tricks to improve its margin.
The newspaper noted the Dragoneye report was published at the start of the month. Smith & Nephew shares are down around 6% since then.
https://www.thetimes.com/business-money/companies/article/smith-and-nephew-inflating-profit-margins-claims-dxzqhkpcj?utm_source=Sailthru
Smith & Nephew reports on third-quarter trading on October 31.
By Eric Cunha, Alliance News news editor
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