2 April 2012 – strategic review update

The company has taken the market by surprise with a concerning update on its strategic review.  This review was undertaken to address the steep discount of the share price to the net asset value and we were expecting some action to help boost the share price.  Unfortunately, a very ambiguous statement has had the opposite effect and the share price is down 45% on the day. 

The dividend is under review and this, along with fears over refinancing, has clearly spooked some investors.  Notice has been given to terminate the Asset Management Agreement with RP&C International.  Final results are due to be released later in the month.  Until then, in the absence of further news, we rate the shares as a HOLD.