ANDREW WATSON N+1 SINGER
It’s an encouraging sign they’ve appointed a new chief executive. The rights issue will help reduce the debt position but a more challenging trading environment will continue to provide headwinds. We expect strategy to focus on costs to maximise profits from the current store estate.
OWEN JONES SHORE CAPITAL
We wish Chris Gillespie well in his new role, though we cannot profess to a feeling of envy given the scope of the challenges that will present to him. We maintain our sell recommendation on the shares, a recommendation we have had for some time, given the tough trading conditions.
DUNCAN HALL FINNCAP
The debt situation was always likely to present problems as the gold price turned down. Without the prop from gold buying, assuming trading conditions for the core pawnbroking business hold at current levels, attention to the group’s cost base will be required to ensure ongoing profitability.