Have tanked south today and the fact that it hasn't is imo clearly a sign of some confidence from the market. As has been said, if we'd of had this kind of an RNS a few months ago it would have been mayhem on here.
I absolutely agree it is better to have an RNS that tells the truth than one which is "relentlessly positive" (but full of half-truths) as we were fed in the past. But notwithstanding that this statement does leave a lot of questions unanswered, and raises a few more besides. Clearly the new Board have taken on a sisyphean task in wading through the issues, however having had PwC on side for several months, the well paid Rose and Sutcliffe for several months (though I suspect AO has taken up some of Rose's time recently) it is disappointing that they couldn't, at least, put to bed the accounting issues/ cash position, by now.
Seems there is a bit of divided opinion on today's update! My take is that it has plenty of good news and says just what it needs to say given background of ongoing negotiations of a major sale.
The strategy review has clearly made some major progress. The company will be teased out into 2 distinct opersting divisions. And what does'nt fit into either of them - the non core stuff will be sold off. Nice and neat. The RNS states that no conclusions yet drawn on the company's revenue recognition policies. From a formal PwC perspective this is no doubt true, but S&G will no doubt have drawn their own conclusions and it has'nt feterref them from their bid. Although there was no explicit reference to cash flow I think it is reasonable to infer that it is at least of no immediate concern from the statement "...The Consultants have noted the quality of people, operations and prospects of the Professional Services Division...". In other words there is a strong healthy business there and that is what S&G want to get their hands on. Also great to see that Rose and Sutcliffe are heavily involved so any outcome of strategic decisions will have their full buy-in.
All in all a smart positive rns containing just enough info to confirm company moving in right direction and to hopefully keep shorters on their toes!All imho. GLA.
Look guys no one will fund s&g 700 million without seeing the exact findings of the PWC report .. The report is what will secure the funding .. It's like a bank will not give you a mortgage on a house that is falling down .. The report will be irrelevant soon .. 700 will just be for qls and qls only .. There will still be allot left with the tech side of the Buisiness .. This morning rns is quite clearly telling you that.. There is still a big Buisiness left after qls is gone and it is that Buisiness that is left which has the biggest potential to grow
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