RE: Shorts reduced3 Jul 2024 10:45
Garat certainly inherited a poor situation from Covid recovery, inflation, driver shortages, German Rail contract errors, urgent need to raise cash to cover opex and refinance term loans. It ain’t been easy that’s for sure.
However he has been responsible for and presided over several missteps including the dividend fiasco, multiple misguidances and a lack of urgency to deal with some of the issues such as asset sales. The argument he waited for a better time/price was a failed gamble and one that others didn’t make (First Bus being a good example).
Lastly for me and the most important is the failure to communicate and the lack of PR. Just radio silence whilst the SP plummets. No efforts to push a positive narrative. For example US and European contract wins aren’t shared in the group site (or rarely).
There is further highlighted by arrogance or ignorance over the Grupo Bus deal. No explanation, no information either before or after. Spending what we think is £80m in cash (we think because we don’t know - obviously we aren’t important enough to be told how a large chunk of precious cash was spent) strapped times under a management narrative of the priority to reduce debt just doesn’t make sense and concerns me more than anything.
Ultimately as Poker says we made are bed. However I made my bed with the information provided at the time. That information turned out to be misleading and inaccurate, therefore MAVS comments are pretty much justified in my view.
They don’t show any signs of changing their ways in terms of communication and are clearly dancing to the tune of Cosmens or otherwise they would be gone and would certainly not have been investigated to continue with. CHeap share options.
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