FT Clarity clarification not enough for Enigmatic

28th Oct 2011 16:34

Enigmatic Investments, a subsidiary of private equity group Better Capital's Becap Fund, has hit out at what it describes as "fundamental factual errors" in a Financial Times article about its bid for software group Clarity Commerce Solutions.Enigmatic takes issue with the article's claim that a pre-tax profit of £1.4m at Clarity would equate to earnings per share of more than 5p. "In fact a profit after tax of £1.4 million (i.e. assuming no tax charge) would equate to earnings of 3.38 pence a share, or 2.53 pence a share after a 25% tax rate is applied (for illustrative purposes)," Enigmatic said.It continues: "Furthermore, whilst Enigmatic Investments is aware that the reference to a pre-tax profit of £1.4m was one of opinion expressed by the journalist, Enigmatic wishes to draw attention to the fact that in the most recent financial period ended 31 March 2011, Clarity reported a loss before taxation of £1.435m."Enigmatic's point about how earnings per share had in fact been acknowledged by the FT in a clarification, which stated that: "Earnings per share in 2009-10 would have been 3.4p if tax credits had been excluded, not more than 5p as implied in the Small Talk column on October 27."Yet today's statement by Enigmatic points to "fundamental factual errors" contained within the article and the clarication.Clarity provides software services to retailers and leisure groups including the department store Debenhams and the gym Fitspace.