The buzz
03 Dec 2014
12.25p Share Buy Back of 21.6% Shares The company is buying out small shareholders first to reduce costs and then larger shareholders. 12.25p must be a new floor to the share price . It must also show confidence in the trading if they can buy back this many shares. I think that the company is being a bit opportunist with the current low share price, but that is the time to buy back shares so it is a sensible decision and gives a floor to the share price. The money is coming from their existing overdraft facilities. 21.6% is a huge chunk of shares, It is expected that the EPS will increase - so the cost of the overdraft must be cheaper than paying a dividend? If the profits develop well, then presumably there will be more share backs in the medium term if he share price stays low.The B
