Summary15 Feb 2025 13:06
- Few points to note before YE results for 2024
YE results is a lagging indicator of past performance, something that has already happened. We have increased margin with total cost saving of £160m by June 2025. We've reduced debt to low levels, lease liability to have reduced by around 10% according the Richard stavely. With these benefits has resulted in drop in revenue through contract losses and being selective in renewal to meet margin target of 6-8%.
The key focus would be forward looking statement for 2025.
The benefit of £250m savings to start come through. With margin level upgraded between 7 -8%. We know outflow of £50m will be in the first half which should be offset by cost savings already implemented. Further reduction in lease liability by 10%. Low debt level maintained. With the hope of FCF starting to be visible. So expecting profit upgrade to show through with the cost saving.
We're now towards the end of February, will the business be a completely different business in 10 months time fundamentally?
The share price has generally rose towards results with MMs offloading their supplies. This time, the MMs is taking the price lower to induce sellers to collect shares to sell at a higher price maybe? Is the wide spread due to lack of liquidity is to stop buyers by charging them premium and frustrate existing PIs to give their shares away 🤔
However the market reacts. At todays price, alot of the LH would have wished they bought in at these levels. Price target by analyst at 17p and above. I think the market just at they did before December 2024, was keen to look forward to debt levels. I expect alot of that excitement to return imho gla
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