Translating the market lingo

The stock market can be a bewildering place. It is full of conventions that have developed over the years. None more so than in the language brokers and company management use to communicate with shareholders. Never fear! I am here to (slightly cynically) translate the market lingo into plain English for you!

Translating trading updates

Broadly in line = not in line

Expectations moderated = expectations missedBelow expectations = at least a 10% missMaterially below expectations = at least a 20% missRobust performance = sales are down

A focus on margins = sales have plummetedResilient performance = sales have collapsedAdjusted Earnings = Earnings excluding everything that’s gone wrongAdjusted EBITDA = a made-up positive numberAdjusted EBITDAR = things must be really badAdjusted LBITDA = trading is so bad we couldn’t even make up a positive numberStrong Balance Sheet = Weak Balance SheetAs we said in our last… = As we tried to hide in our last…

Providing a solid foundation = surely things can’t go lower, can they?

Unusually strong H2-weighting = it'll take a miracle to avoid a profits warningTranslating company results

IFRS16 = all of our money is going to the landlordIFRS19 = all of our money is going to the elderlyBanking covenant waiver = the bank...