RNS to me more like moving deck chairs. Until there is firm news on improved sales and margins, with a reduction in debt, and a clear plan to grow the business this will continue to stagnate or drift lower.. 13p then 12. Current leadership may have “saved” the business to fight another day, but not sure they have either experience or a track record in growth. Fewer international markets than 3 years ago! In the meantime Babyshop growing v fast in Middle East and beyond.
With global clothing sales down due to CoVid restrictions etc one could assume that franchisees may be sitting on lots of stock, orders for upcoming seasons may therefore be lower which in turn may put pressure on the viability of suppliers with lower production runs, or higher costs to produce the lower volume. It may be a year till the picture becomes clearer. If Boots tho flies then maybe a different story?.. Takeover unlikely due to Pension.. “treading water” stock in short term?..
Unless something materially positive eg new CEO or new franchise partners I guess we have to wait till next trading update which will still have CoVid impact so my guess is a gradual downward drift to around 13p until new news. Had hoped to be mid 20’s by now. If Middle East and Boots kick in we will be ok..
Agree would be nice to know, maybe current team doing ok without a CEO, big call to get right person and still a potential takeover target in my view so who would want it?.. sales update will be interesting
How likely is it that MTC get taken over in the next few months? Rumours aside, this brand surely has some international potential, no presence in South America, Africa, not sure what is the potential in China?.. Needs to offload pension and get some cash injection?.. a bid of what could secure a deal?.. 30p??