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I’ll just write a quick note today, and give a more considered analysis next week.
I bought at around 27p – 29p. (Sold some of my Caledonian Trust to do it at £2.80 – a pity I had to do that but at least they have given a very good return (bought at under a pound))
The one element I thought was a big black hole in my thinking about the current situation at Connect – and Warren would be wagging his finger at me about – was the possibility of a lack of leadership.
So I looked into this. Gary Kennedy, the chair appointed in 2015, together with Mark Whitling, Senior independent director appointed in Sept 2017 and Denise Collis, appointed Dec 2015, are the new team of outsiders to take a hard look at the nature of this business and its strategic direction and strategic mistakes.
I imagine that they have been in discussion with institutional investors, not least 10% holders Aberforth (deep value investors).
As I’ve written before, the proper strategy is clear
(a) no more acquisitions
(b) focus on running the two cash cows well and paying out to shareholders (perhaps after paying down the debt)
(c) sort out quickly or sell Tuffnells
(d) sort out or close down PMP.
Then it becomes a nice, simple, easy to understand and run business.
This plan is what was announced yesterday – I think.
What about executive directors? They still have Jonathan Bunting, who joined News Distribution in the 1990s – lots of experience he can apply, if he gets back to basics. And he still has his team below him.
On Finance, they have a new guy, Tony Grace. So that hole is filled
Thus the organisation can function without
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