ALEX JARVIS | PEEL HUNT
We have made provisional revisions to the current year and substantially reduced full-year 2012 and 2013 forecasts as evidently it will need to be rebased. We provisionally value the company on two times full-year 2011 revised sales, implying a 135p target price, assuming £8m net cash.
GEORGE O'CONNOR | PANMURE GORDON
There are no encouraging signs in this, but the latest warning will only raise calls for the company to be sold from a murmur to a cresendo. Yet with the business looking like it is stuck in a hole, buyers are more likely to be cheeky bids from financial buyers. This is very disappointing.
JULIAN YATES | INVESTEC
We interpret this as revenues around £2m lower (at £37m) and costs £2m higher, which will reduce earnings to virtually zero. With numbers not finalised, questions will be raised about budget discipline and we expect this uncertainty to impact the stock today.