Sp13 Jan 2022 06:50
After doing careful research iv concluded the following.
- the company stated they will achieve revenue growth end of 2021. So the statement which they don't usually issue was I belivee issued to update the market in achieving that. Which in theory is big news after so many years
- we already knew travel and events division was hit by covid in the half year report. But the December statement showed to what extent. In addition, they managed to sign new contracts with Thames waters, rspca etc to bolster the revenue in that division. Should covid situation improves then revenue should jump along side new contracts possibly to double digits.
- we preferred debt reduction, however delay in debt reduction is probably due to the timing of receiving payments from disposals. Had they payment was recieved before December statement. Share price I think wouldn't have dropped much. Main thing was debt hasn't increased
- further to the debt, the last cash disposal rns specifically mentioned, the proceed will be use to pay off debt. Not often have I seen them mention that in their rns
- the profit margin has increased and in some division at a glance, I think shows profit increase even after disposals. So again in half yearly report. They started seeing rise in profits.
- having messaged IR. It was said they had no reason why share price dropped the way it did. As they achieved what they set out to achieve. He believes PI were reason for the share price drop as institution wernt selling. Its been near enough a month now and institution are holding firm with the turnaround story.
As a result, iv closed out my position. Shorting is very high risk. Everything above is all in my opinion
Gla
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