A section of Tom's view @ t1ps.com31 Aug 2007 19:16
Folks, the reality is that if the disposal plans get shareholder approval, the turnover of the company will be approximately halved, but its ongoing losses almost entirely eliminated. Whilst the remaining business of the company will be smaller, sales across all major brands are growing, which coupled with a significantly reduced and tightly monitored cost base will lead to a markedly improved bottom line. Crucially, the business will be left with no significant debt and the ability to achieve profitability within an acceptable timescale. i.e., the relative short term. It is already profitable at an operating level
Today's news was accompanied by the resignation of the finance director, Tony Murphy - pretty irrelevant in light of these latest developments. Thus at 3.625p, the shares are a fraction of their highs, but also a fraction of what they could be once the sale gets the green light. Blavod has proven to be a thorough disappointment, however there is no point selling now as the refocusing on the profitable UK operations should bring at the very least, limited success for Blavod's reluctantly patient shareholders.