This morning the Regulator of Social Housing @RSHEngland placed Falcon Housing Association CIC (Falcon) on its gradings under review list. Falcon is the 2nd largest tenant to Civitas Social Housing (Civitas) at c. 20% of the rent roll. ShadowFall is short Civitas. #CSH (1/4)

https://twitter.com/shadowfallcr/status/1440679867431800841

The announcement from the RSH follows the Regulatory Notice against Auckland Home Solutions published in early August. If Falcon were to be found non-compliant with Governance and Financial viability standards then c. 44% of rent in FY21 would be deemed non-compliant! (2/4)

ShadowFall is short Kerry Group ($KYG).
We found @theOntake note compelling, with it echoing several concerns we raised a while back. We view Kerry’s financial statements to be opaque and sometimes unreliable. Having read the latest findings, we’re more convinced of this. 1/6 To those that say this is old news, the truth is still the truth regardless of time. What we find interesting is that a fresh set of eyes has similar observations to us, with more recent information strengthening our view. 2/6

ShadowFall is short Network International $NETW
Burkhard Ley (former Wirecard CFO): “I read through the 101-page [Zatarra] report . . . page by page. After that I knew that not a single allegation was correct.”
For us, the NETW response is reminiscent of the Ley defence. 1/6 Like dear Burkhard’s response in 2016, we believe NETW’s response doesn’t do investors justice after promising a full response. Despite saying not a single allegation was correct, Burkhard couldn’t provide one example to back up this claim. 2/6

ShadowFall is short Temenos, $TEMN.
We’ve been short some time, it’s always surprised us that while the company spends significant amounts on R&D, it seems to us to be behind other technology companies on the transition to SaaS. 1/4 Whilst we’re on R&D, it’s never been clear to us where this goes. TEMN expensed USD 270m on R&D in FY19 & capitalised USD 65m. Presumably this is focused on India, since Temenos says R&D is conducted in India and its Indian employees broadly follow employees in R&D. 2/4

ShadowFall is short Network International ($NETW). Report available to download from: shadowfall.com/researchservic…
Some of the Wirecard connections to NETW’s intended acquisition, DPO, are already known. However, we have found numerous links…. 1/7 Yes, DPO bought Acona from Dietmar Knöchelmann, who was subsequently convicted for money laundering & fraud. However, we also find that DPO has been audited by a former co-director to Knöchelmann. 2/7

ShadowFall is short Blue Prism ($PRSM). shadowfall.com/researchservic…
We believe PRSM is being left behind by its peers in the highly competitive & commoditised RPA market. In our view, PRSM’s prospect of ever reaching meaningful profitability is low. 1/4 Meanwhile, PRSM’s key metrics appear to be worsening, such as revenue per average customer, the quality of its receivables, upsell rates, customer churn, while significant board churn and what we view as lack of appropriate independence we find also of concern. 2/4

ShadowFall is short Boohoo (£BOO).
Below are several questions that we believe should be put to Boohoo’s management: 1. Of the £89.8m in EBITDA for 1H20, what percentage of this do you estimate was driven from unintentionally benefiting from the exploitation of Leicester factory workers due to their low pay and poor working conditions in the supply chain?

ShadowFall Fund is short Boohoo (£BOO)
We believe that Iain Dale’s @LBC show from yesterday was enlightening. In particular an extended interview with @ABridgen: lbc.co.uk/radio/presente… 1/4 Mr Bridgen MP makes reference to two buildings, the Dunlop Building and the Imperial Typewriter Factory. In the former reference, we believe that he meant the Dunlop Business Centre (DBC). According to Land Registry details, the DBC is owned by JAK Property Jersey Limited. 2/4

shadowfall.com/researchservic…
ShadowFall Fund is short BooHoo Plc (£BOO).
Since 2014, we believe that BOO has provided a misleading impression of its cumulative Free Cash Flow (FCF) by 67%. Most recently, in FY20, we believe BOO’s FCF was misrepresented by 65%. 1/5 Two weeks ago, BOO made a £198m cash call. We see a risk that BOO doesn’t use this for M&A, but instead combines it with its considerable £241m net cash, just to be paid to BOO’s Chairman’s son, through material dividends and a potential PrettyLittleThing (PLT) NCI buy-out. 2/5

ShadowFall Fund is short Future Plc
Future (£FUTR) is valued at 6.8x 2019 sales. We calculate 79% of this was bought at 1.9x. Upon review, we believe that Future is a collection of generally low quality, often distinct & shrinking assets.

shadowfall.com/researchservic… We calculate Future’s FY19 organic sales growth was 1% (reported at 11%). Regarding EBITDA, we question the benefits from Future’s strategy, such as “Growth from Platform Effect”. Our view is that a greater proportion of FY19 EBITDA growth stems from businesses being acquired.

ShadowFall Fund is short Burford Capital, $BUR

Incredible scenes at Burford. Company reporting “record interim results”!

shadowfall.com/social-media-d… One mention of cash in its RNS.

ShadowFall Fund is short Eurofins Scientific SE
TALK ABOUT CLOSENESS? - ShadowFall Research shadowfall.com/blog/2019/07/0… ShadowFall Fund is short Eurofins Scientific SE . A month later and still no response from the Belgian auditor we wrote to.
Maybe he’s busy auditing ERF’s Luxembourg subsidiary accounts, which in recent years have been filed by May?