Tis been A while24 Mar 2009 19:25
So I thought Id stick my head back in.
Some things too note.
The current downturn in "traffic" is too be expected in the current climate. HRG will not suffer too badly mainly due too the fact that they get their "refferral" and arent reliant on bookings.
HRG have cancelled the divi, which I suggested they should do several months ago and use that too pay back their debts...Good call !
Whilist taking a 5mill hit this year, they expected reduction in head count and everything else involved should mean that the 5-10mill a year they put back on bottom line will mean they can repay their borrowings at current levels AND resume paying a Divi
90% retention rate....cant really be bad can it :)
If this starts too fall, stakeholders will continue too accumulate at the rate they are. Why wouldnt they ? Increasing stake cheaply for these holders makes alot of sense, even if they dont launch a takeover down the line.
All in, HRG have always been a tuck away for a rainy day, these will get bought out eventually, they may come down to 10p levels, but that just offers a decent opportunity too accumulate some more.
The debt is always something too thing of, but providing it is being serviced, as it is, and money continues too be made, and overheads reduced, like all business`s are doing everywhere, then over the longer term it will place HRG well.
Hola OB btw :)