RE: Avallux sale10 Mar 2015 20:39
Money time - to be fair I think this was over-bought a little. It's great that the price has recovered following last year, and suspect that the latest wobble is just that. We're trading way below our EV per share value of around £2.00. We need to get the May trading out of the way to ensure a sustained rise, hopefully. If annuity sales show some resilience before the pension changes, then all is good. Their defined benefit successes I think bodes very well.
As for the Avallux sale, I very much doubt that there will be further sales in the short term. The 52% shareholding is important for all sorts of reasons, least of which the amount of work the Group would need to undertake should there be a change in control - ie a fall below 50%. I'm expecting the Group to successfully steer through the pension changes and be able to provide a number of niche products to take advantage of the new rules. I would hope that the share price might be north of £2 in the next 6 months.
Just my views
HOTH