{
  "docId": "019dd923-622c-750b-8b97-9fb7a842e09f",
  "docSlug": "cddb6c0b289f",
  "documentTitle": "Eurofins Scientific SE (ERF)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-06-24 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 13,
  "pageCount": 36,
  "prevPage": 12,
  "nextPage": 14,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 5,
  "notes": "The slide uses the 'iceberg model' metaphor to suggest that this specific accounting error is indicative of a larger, systemic issue within the parent company.",
  "elementsJson": [
    "paragraph",
    "screenshot"
  ],
  "metadataConfidence": 0.95,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b97-9fb7a842e09f/13",
  "deckHref": "/decks/019dd923-622c-750b-8b97-9fb7a842e09f",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b97-9fb7a842e09f.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b97-9fb7a842e09f#slide-13",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "BLC has a clear conflict between its cash accounting policy and its actual cash accounting.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-3f3d-76db-b334-dacf60ddfb83",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Cash at bank and in hand: £1.2 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-3f3d-76db-b334-e1d4beba0534",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.78,
        "x": 0.11,
        "y": 0.31
      },
      "kind": "paragraph",
      "text": "BLC has a clear conflict between its cash accounting policy and its actual cash accounting. While the delta in this case was only ~£1.1 million, this type of confusion is unnecessary.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "41c26d1b-42fa-4d34-9a1a-54a506ce541a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.09
      },
      "kind": "paragraph",
      "text": "given that the reporting of cash accounts seems intended to obscure (or inflate) real cash. In the case of BLC, the cash accounting seems to have recently gone awry. This could be the tip of the iceberg.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4960294e-e19d-4247-8c87-3044426f07cd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.78,
        "x": 0.11,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "BLC's financials illustrate our concern that Eurofins' cash accounts could contain material errors due to the – deliberately imposed – complexity of its structure and accounting.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "afc502a3-7ed6-4176-b2f0-0d6c09e0a493",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "In other words, BLC's real cash is only £124,000 out of £1.2 million.",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-3f3d-76db-b334-df3abf994cdb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.45,
        "x": 0.11,
        "y": 0.89
      },
      "kind": "source-note",
      "text": "26 Eurofins BLC Leather Technology Limited Financial Statements 2022.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b995ab2d-41d1-4313-9ffe-612285cb1fd5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.28,
        "w": 0.54,
        "x": 0.23,
        "y": 0.48
      },
      "kind": "table",
      "text": "BLC's 2022 Balance Sheet showing Cash of £1.2 million",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "644b7d1b-2625-4c93-820d-c888a7ce1b8a",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "iceberg-model",
      "slug": null,
      "matchId": "4fd95cd4-52a3-4026-9f15-c589e2ba2b47",
      "evidence": "The text explicitly mentions 'This could be the tip of the iceberg' to describe the accounting discrepancy.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 30,
      "from": 3,
      "beatId": "3d510a0f-6fd9-45d2-879c-09a0eaf3d1a5",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The research note presents various contradictions in Eurofins Scientific's financial reporting and disclosures.",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}