Adjustments in SoftwareOne - fake news

Crayon vs SWON, a dive into "Adjustments"

In our last letter we concluded that SoftwareOne was "not a good company" based on 4 reasons.

Reason nr 3 was "Margins look very strong" (superior to Crayon), but the facts are that adjustments are "fake".

Let's have a look at SWON's adjustment last 5 years vs Crayon.

Do you agree? Is this close to "fake"?

10x the size of adjustments in SoftwareOne vs Crayon leads to a valuation question - right?

Stay tuned, we'll update you more in following letters and we'll go to Switzerland together with others in order to challenge and learn.

Disclaimer:
Hvaler Invest is a significant shareholder so you cannot trust us (or perhaps you can?)

 

All the best,

Sverre and David

Hvaler Invest AS

Lillestrøm, Norway

09.01.25