The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
If Schroder are averaging at 69p then a takeover seems like a pipe dream unless they are willing to accept a loss. Who's going to offer 5x current SP on a inefficient business like this. 3bn turnover is pure vanity when profits are none existent.
Adolfos plan needs to kick in... Unfortunately that's our best hope.
Too much has been made of the cyber attacks. 25m on 3bn is laughable it's spare change. Raising the lowest earners wages by 22% is beyond ludacris.
Priorities are wrong here, shareholders are way down the list along with margins and Profitability. Next opportunity to exit and I'm gone, regret not going in December it's cost me 20k.
Bare minimum but could easily triple his stake by the time he steps down. Doubt it will do much to settle investor confidence in the short term.
Cost saving measures don't go far enough, other industries are openly trimming staff - no mention of that here. 42000 employees over 3 billion turnover is heavy especially compared to Serco's 50000/4.8 billion (98k turnover per head)!
These institutions are never ran in the interests of the shareholder. The long and short of it is they need to shed staff but with them effectively being a government agency they can't say it. When margins are this lean they need to run a tight ship and it's anything but. Disappointing, opening down and probably staying down imo!