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Avalon Telematics Ltd
No ratingHigh
FY2026
Fiscal 2026 write-down empties equity and multiplies the accumulated deficit
Revenue was flat while the operating result turned deeply negative, the accumulated deficit multiplied and carrying intangibles fell to the floor of the peer population in the same year. The rows describe a write-down of carrying value, not a collapse in trading.
Indicators: Intangible AssetsRetained Earnings
Reads Intangible Assets · Retained EarningsIndicator analysisCost capitalisation policyconfidence high
High
FY2026
North America carrying value survives only on assumptions management concedes could move
The closing filing states that the unit carrying the acquired goodwill has limited headroom and that a one-point change in the discount rate would take the recoverable amount below the carrying amount.
“The recoverable amount of the North America unit exceeds its carrying amount by a limited margin, and a reasonably possible change of one percentage point in the discount rate would reduce the recoverable amount below the carrying amount.”
Line items: Intangible AssetsChange in Goodwill
Document reviewCost capitalisation policyconfidence high
High
FY2024, FY2025
Acquired goodwill carried in the wrong currency since 2022, prior periods restated
The group identified an error under which goodwill and other acquired intangibles from the acquisition had been recorded in the parent's currency rather than each unit's functional currency, and restated every affected prior-period line item.
“During the year the group identified an error under which goodwill and other acquired intangible assets arising on the acquisition of the North America business had been recorded in the parent's currency rather than in the functional currency of each unit, in the financial statements since 2022.”
Indicators: Change in Goodwill
Restatement comparisonRestatementconfidence high
High
FY2025
Auditor warns headroom may sit below management's calculation
The prior year's audit report names impairment testing a key audit matter and states that the headroom may be lower than the amount management calculated. The charge followed in the next year.
“The headroom in the impairment assessment of the North America unit may be lower than the amount management has calculated”
Line items: Intangible Assets
Document reviewCost capitalisation policyconfidence moderate
Medium
FY2026
Impairment indicators recorded for five years before the charge was taken
Net assets have exceeded market capitalisation at every balance date since 2021, which the filings themselves name an indicator of impairment; the charge was taken in the closing year.
“Net assets have exceeded the group's market capitalisation at each balance date since 2021, which is an indicator of impairment”
Line items: Intangible AssetsTotal Assets
Document reviewCost capitalisation policyconfidence high
Medium
FY2026
Impairment charge held outside the segment earnings used internally
The impairment is excluded from the measure reported to management, so the segment table shows earnings the group result does not.
“Segment earnings exclude the impairment of goodwill and intangible assets of 134.7 million”
Line items: Operating Income
Document reviewCompany-defined measureconfidence moderate
Medium
FY2024, FY2025, FY2026
Allowance against receivables sits at the peer ceiling in every computed year
The allowance held against receivables is higher, relative to the balance, than any company in the population in each year it could be computed.
Indicators: Provision for Bad Debt Relative to Trade Receivables
Reads Provision for Bad Debt Relative to Trade ReceivablesIndicator analysisProvision or reserve judgementconfidence moderate
Medium
FY2023, FY2024
Contract costs moved between operating and investing, comparatives re-presented twice
Capitalised contract acquisition costs were reclassified from operating to investing cash flows and the comparative re-presented, in two successive years.
“Capitalised contract acquisition costs have been reclassified from operating to investing cash flows, and the comparative amounts have been re-presented for the second successive year.”
Line items: Operating Cash FlowNet Cash from Investing
Restatement comparisonCash flow classificationconfidence moderate
Low
FY2026
Banking facilities amended and extended against a working capital deficit
The closing audit report draws attention to facilities maturing within twelve months and to a net working capital deficit at the balance date.
“We draw attention to the amendment and extension of the banking facilities, which mature within twelve months of the date of this report, and to the net working capital deficit at the balance date.”
Line items: Current LiabilitiesCurrent Assets
Document reviewGoing-concern statementconfidence high
Low
FY2024, FY2025, FY2026
Digit conformity is unremarkable in every year and best at the close
The distribution of leading digits across the filed figures matches the expected distribution; the closing year is the closest fit in the series.
Line items: Digit Distribution Deviation Score
Reads Digit Distribution Deviation ScoreIndicator analysisGovernanceconfidence low
Low
FY2025
Allowance rate on receivables eased in the prior year
The allowance fell by half a point of the balance in the prior year, which is the only movement in the series.
“The allowance held against trade receivables is 6.4 per cent of the balance, against 6.9 per cent in the prior year.”
Line items: Accounts Receivable
Identity checkProvision or reserve judgementconfidence low
Low
FY2024
Contract costs are capitalised and amortised over the contract term
The policy is disclosed in the filings and is unchanged across the years read.
“Contract acquisition costs are capitalised and amortised over the term of the contract they were incurred to obtain.”
Line items: Operating Cash Flow
Document reviewconfidence moderate
Showing 12 of 12 · a finding rests on figures this study published, a quoted passage, or bothTypologies: Cost capitalisation policy · Provision or reserve judgement · Cash flow classification · Company-defined measure · Going-concern statement · Governance · Restatement