RE: Positive Outlook: Exercise Prudence14 Sep 2023 16:55
The issue here is that in mid 2022 this share was trading at the £3 level. Any holder from then has seen the value of their holding collapse by >80%. Disastrous management decisions have destroyed shareholder value here. Now to get them out of their mess they expect holders to invest more funds than the existing investment is worth, and the debt ratio will still be 3.5-4x. No explanation how they will get it to under 2x other than management speak of cost management and asset sales. Very unlikely to be achievable in my opinion.
For PI's who were invested since mid 2022 or earlier you have to ask yourselves will the value of this company really grow by 6x or more. That's how much it needs to grow to recover the losses if you were invested at that point.
Hard truths are difficult to accept...