JONATHAN IMLAH | COLLINS STEWART
The company needs to focus on execution, and turning around the European business, which has underperformed. I don’t think it will be looking to do anything revolutionary. Aside from this, there’s not much it can do about pressures from outside, for example a board change or takeover approach.
ARUN GEORGE | ALTIUM
The statement derails what’s left of the investment thesis. It offers a list of reasons that contributed to the lowered margin expansion, none of which seems to be credible in our view. Pace now faces an uphill task in rebuilding confidence and we believe needs a refresh of the leadership team.
ERIC BURNS |
Today’s statement raises as many questions as it provides answers, not least why what appears to have been in part a first-quarter issue was not announced until May and why management are so confident second-half margins will bounce back. Although sales to date have held up well our cynical disposition makes us speculate that this might be the next metric to go into reverse.