funk8 Mar 2013 11:26
Indeed, there was a small spike early 09 after some increased attention was drawn to the company. The sp was over 90p but had sunk gradually during 08 as the effect of the recession impacted on marketing spends. Borrowings were also fairly high as a result of expansion, hindsight would tell us that perhaps expansion had extended the finances to a level of discomfort. Then, the merger of Loyds and HBOS resulted in the sell off by a pension funds as two funds were merged. That was the nadir of the sp, as those fund managers flooded a thin trading market with extra shares. The BoD reorganisation, the funds raised to reduce borrowings, and the emphasis on further reduction in borrowings, set in place the policies that we are now seeing the benefit of. The growth trajectory is rising more steeply, borrowings now at an almost significant level, and the prospect of impending dividend aimed at attracting a new tier of investor. All coming together very nicely, and the aim of reaching a quid per share looks entirely realistic in my view.