RE: Today’s trading currently appears30 Oct 2020 11:20
The problem is it's just another RNS that demonstrates lack of real tangible progress. There are always mitigating reasons and at times it comes across as yet another excuse. That's been our issue for some time and the market therefore has no confidence. It's almost another false start, although we know it should just be a matter of time before the handover completes.
The H1 financial results were always going to be a bit, how shall I put it, challenging but my view is they are already priced in. It wasn't difficult with the weather and Q2 lockdown to foresee that we would make a decent loss again on operations.
But, what's really changed between the update from 6th October and this morning's RNS in terms of other things? That's three and a half weeks and we're heading into the unknown now as far as weather goes. These delays, for whatever reason, are just making our operational life as a company more complex - we confirmed the ILTL handover in the summer - almost five months ago (first week in June?).
We're not yet building that market confidence back - that's the key and until we get some tangible positives and real numbers, I think we'll just be up and down around this 0.04ish level with an occasional spike, or drop. But I do see that as a positive for those either reducing averages or trading down their paper losses. I can see a nice spike when the news of ILTL handover finally lands, so there's an opportunity at these levels.