Dillistone
As forewarned at the time of their results, Dillistone are out of cash due to restructuring costs. I expected the directors would provide an additional convertible loan notes, but instead they have been able to borrow from their bank over 2 years. The low interest rate of 3.25% over base is a very good sign, although this is now the senior debt.
There is no update on business progress and the risk remains that sooner or later the directors will have to issue further convertible loan notes or shares to themselves and will ultimately take full control of the company.
The share is hideously illiquid. I have managed to sell out and will be avoiding.
CMC Markets
Profit collapse as expected, appears to be a miss on revenue, EPS and especially dividend. Outlook is merely to be “profitable” with no sign of improving trends let alone a bounceback.
I have a profitable position that I will be attempting to sell on the open.
I suspect that the cost base of the spreadbetters is now inappropriately high for the level of ongoing business and some restructuring or even mergers may be on the cards.
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