Nearly bought21 Mar 2007 11:43
Down from 500p+ in the Autumn to 72.5p now, a disaster indeed. I nearly bought at 82p this morning, thinking there'd be a bounce on onverselling. Glad I didn't hit that buy button though as another 11% down since then. Brokers suggesting this co is all but dead, that seems to be an exageration to me. The problem is of course that in this new, fit, antifat world, cakes are no longer what we are all into. Personally, I luv 'em, but I tend to bake my own rather than buying over sugared off the shelf varieties.
So where to now for Interlink? Well the problem is that if you take out intangibles they are all but insolvent, fixed assets, stocks etc pretty much equal debtors, meaning net debts of over £30m (that being tied up in plant and real estate).
However, they had a turnover £130m in 2006, pretty good for a company now valued at a lowly £8.5m. If they can cost cut to bring themselves back to profit then their survival should be secured. I can't help but wonder if one of the larger food companies might want to snap them up though...