(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. 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. Smith & Nephew shares are down around 6% since then.

Source: The Times October 13, 2024 22:07 UTC