Basis analysis19 Feb 2014 21:47
I am an amateur "investor" and learned my part time trade doing evening classes, but unfortunately after this share purchase. I would have done more homework on this share before I purchased it. Couple of basic observations:
Half year net profits circa £300k for fy13/14 before provisions so full year could be £600k. Broker forecast is £2m. Was a Profit warning around the corner?
Retained earnings for the group is negative £29m. At the current rate of profits this company will not be able to pay dividends for 50 years which is what long term investors look for and who ultimately drive demand and steady consistent growth in share price. It is againt the companys act to pay dividends unless there is positive retained earnings. Unless they get a court approval to do so.
Any thoughts?