18 July 2016 – corporate update

A lengthy statement has been released, covering a corporate update, board changes and an audit update.  The key positive appears to be the fact the target of reducing annualised operating costs by not less than £5m has already been exceeded.  The process is ongoing with further savings identified.  The company has been considering moving to the UK from its Jersey base and with operations now focused on the UK Chief Executive Mike Hall and Chief Financial Officer Donal Duff have stepped down from the Board.  Andrew Cook, who was appointed Group Managing Director ‎on 31 May 2016, has joined the Board as Chief Financial Officer.  Harry Wilson, who joined the Board on 17 May 2016, will become Executive Chairman.

The ongoing restructuring and appointment of new auditors mean that results will be released later than usual.  There are a number of issues which are likely to see the net asset value fall and results from previous years may be restated.  However, much of this is non-cash and clearly the share price slump has factored in a reduced balance sheet.  On balance we keep our HOLD rating for now but it has to be said that there is now scope for considerable recovery in the medium term.