Shouldn't that read AL rather than the directors would have the right to issue additional shares. This stinks. Our shares would be diluted, but AL would be issued more to maintain their 75.1%. Seems to me AL pulled a master stroke in buying 75%. It means they have full control, they lend money at high interest rates and they have 100% access to all the great Developement work for their other companies. IMO AL should pay fees for access to all R&D as we own 24.9% of the intellectual rights. Al will never buy the remaining shares as they don't need to. Very clever IMO
There's a flaw in your assumption that the turnover needs to double to double the margin. Most items in the overhead are static or would only rise in small percentages. For example salaried staff wages would stay the same as would the rent etc. also staff wages may not rise in line with turnover as there may have been significant down time if the sales were below forecast. Another example of this is that Jim summer appeared to be forecasting £100m turnover so if the business planned their overhead on this then there would have been significant overspend on overhead. If you recall, sometime ago the company was re-negotiating shift patterns. It would be my guess that the bod knew there was a sales downturn coming. IMO, this company is a £60-£70m turnover company and they should cut their cloth to suit. Any uplift to this should be a bonus.
Gulp. gross profit 7% on turnover equals 5.243m overheads 10.782m needing a turnover of 155m to break even . directors pay up nice one guy's ashok loan higher (3.36) 2012 (5.2)m 2013 @ 8% over the boe interest rate all in all the SP makes more sense ever day .
In the annual report, it says that current order book, ie end July/ start August 2013 is 20.2m. Would anyone care to make an estimate of how many units this represents, please? Report says this was up from 12.2m at end March 2013. Thanks.
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