On reflection, I think you are right, that the ppix stake is not worth enough to affect the sixh share price. In addition, canot establish a worthwhile market value for the ppix stake because trading in ppix is so illiquid that the dealing spread is 22%.
'With the Laser Division now representing approximately 40% of the Group's profitability, we are pleased to be able to acquire 100% ownership and at the same time align the interests of its Divisional Managing Director, David Grimes, more closely with those of existing shareholders. TYKMA has consistently traded strongly since we acquired it over a year ago and the management team has done well to integrate operations in the UK and US as well as improving manufacturing efficiencies and driving sales growth to gain market share and accelerate profit growth and we are confident this will continue.'
'We're also pleased to report that trading conditions in our Machine Tools Division have improved in the last six weeks with stronger order books in both the US and Europe and some initial success through the new distributors we have established in S.E. Asia. Although it is difficult to anticipate if this will continue given the fragile economic conditions in many of the market we serve, we remain well positioned for growth wherever that may arise.'
The added influence on the sp decline is the warrants, exerciseable at 20p by 2020, which would just about extinguish the long-term debts. Given that 20p looks a long long away, the conclusion is that the company has few short or medium-term drivers of sp increase. In an ideal world the BoD would resign, without compensation, to make way for fresh talent. Sadly we are not in an ideal world.
Disappointing that the BoD blame a declining market. Would be more positive if they had explained how their sales outperformed the market decline. In the absence of such information one can only question the 'added value' which the BoD bring to the party. No doubt they will all take large cuts in their remuneration until the sp recovers (fat chance!)
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