19 October 2011 – trading statement

A very disappointing trading statement from Cosalt has revealed that the annual results to 31 December are goinfg to be well short of expectations.  Although the company is blaming this on the delayed sale of the Marine division earlier in the year, this is really disappointing.  Questions must be asked of the current management team who do not seem to have sufficient control or understanding of what is really happening at the group.  Although the remaining underlying business may be sound and the group was not in breach of banking covenants at 30 September there remains considerable uncertainty about the future.  Given the low share price it is probably not worth selling at these levels but other investors should AVOID.