7 June 2011 – capital reorganisation

The company has proposed a capital reorganisation, which will effectively see each share divided into 100, putting the theoretical price of the shares at 40p assuming the scheme is effected.  This will result in the shares being more marketable and in conjunction with the reorganisation small shareholders will be able to sell their shares without paying dealing costs.  The company has over 14,000 shareholders despite having a market capitalisation of just £2.55m and this number should be significantly reduced, slashing administritive costs.  Although there may be volatility over the coming weeks we continue to rate the shares as a BUY.