Peanuts and food for thought27 Jul 2023 20:54
Looking at Alan Giddins career, a buy short of £200.000 looks like peanuts .
Let's look at some recent cryptic statements:
"We have also reviewed our balance sheet against this more challenging macro-economic backdrop and increased cost of funding. We continue to explore the sale of a limited number of non-core assets on our balance sheet and consider it prudent to reassess the carrying value of certain assets with the expectation that this will result in an impairment charge of c. £10m."
What is wrong with the cost of funding to command the sale of a vague "non-core asset on the balance sheet". Is this prospective sale of asset related to the increased cost of funding - can the company service their debt?
Why "to reassess the carrying value of certain assets on our balance sheet" - whatever this asset is - "with the expectation that this will result in an impairment charge of c. £10m". Are they declaring certain assets on the balance sheet that should not be carried, hence the need to reassess? £10m is not little money.
Add to the above the "exceptional provision for remedial works for legacy properties by an additional £30m to £35m", which is the best and not the worst estimate.
"The strength of our balance sheet and agility of the business allow us to remain proactive in the market." What strength of the balance sheet? The same balance sheet that needs "reviewing"? Add to this a degree of cash outflow. Cash position in Q4 2022 was £110m.
Add to the above the CEO stepping down. Would WJG have done better, had the CEO stirred the company in a better direction? At first glance it looked like the blame was put on the challenging macro economics.
Not hard to believe investors aren't happy with the current, quite vague, update.
The only reassuring factor is the director buy, however is this enough to reassure investors? 2 days on and we don't see the share price recovering significantly.
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