26 April 2010 – disposal

This morning’s confirmation that the group has sold its telecoms business for gross consideration of £32.8m is likely to be well-received by the market, as the recent weakness in the share price has largely been due to worries about the level of the group’s borrowings.  Further disposals may also be on the agenda at the group with the loss-making gas business a likely candidate for sale.  This disposal is the first step in the refocusing of the business and we believe that that the shares are a BUY FOR RECOVERY.