Quite a long term outlook30 Mar 2006 18:31
PTY. The re-organised finances is not a particularly bad pacckage, but it relies on its implementation of members. But judging by the volumes bought today at 1.75p that is in the bag. Individual shareholders were not willing to buy up the shares, the trades went through in large packets. However, existing shareholders will have less of a say !5% in fact, but the major shareholders will have a large slice of this by them buying stock today, as well as having a greater slice of the open offer (16Mns shares) the placing has been fully underwritten by bookrunner Arbuthnot & underwritten to the tune of 16Mns raising £14.7Mns, proceeds to be used to cut borrowings bolstering Balance sheet and directly improving bottom line profits as a result of reduced interest charges. Although the heavy discounted (79%) offering does not appear to have put off buyers today. There will be a raft of institutional "substantial" holdings to follow. I can understand the cautious approach, but hey ho if Arbuthnot are taking full risk I'm in.