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A quick review of reporting season


A quick review of reporting season

If we look at the overall market, the ASX200 Index is up close to 3% in the first two weeks of February, so across the overall market, the news so far appears to be pretty good. In this video Portfolio Manager Tim Kelley discusses a few stocks held in The Montgomery Fund.

Tim joined Montgomery as Head of Research and Portfolio Manager of The Montgomery Fund in July 2012. Prior to this, Tim was an Executive Director in the corporate advisory division of Gresham Partners, where he worked for 17 years. Before joining Gresham Partners, Tim worked for McKinsey & Company for four years, where he was involved in strategic consulting in both Australia and Denmark.


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This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564) and may contain general financial advice that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking advice from a financial advisor if necessary.


  1. Hello Tim,
    I would appreciate it if you would explain generally how Executive share options are reconciled, if there is a quick answer that doesn’t take up your time. For instance reviewing Dominoes’ Annual Report for 2016; Share Capital increased by $41.4m due to stock options.
    Assets = Liabilities + Equity, what Asset is increased or Liability decreased on the balance sheet to account for the increase in Equity from the stock option, unless I’m mistaken I don’t see it in reserves nor anywhere else on the balance sheet.

    • Hi Steven. I haven’t studied DMP’s accounts (we couldn’t make sense of the valuation), but I would expect that on issue of the options, their fair value at the time would be expensed, resulting in lower NPAT and therefore lower retained earnings (so no overall change to Equity). Subsequent exercise of the options should result in receipt of cash and an increase to current assets.

      Readers with more insight into the 2016 accounts may be able to add some additional colour.

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