Operates commercial and subsidized bus routes for businesses, local authorities, the public and private individuals.
2-Feb-2018 – 57.5p – £26.9m – PER 8.12
Trading Update For The 12 Months To End Novmeber 2017 – In-line, Net Debt still circa £27m. Expects next years revenue to be up but the “Bus Services Act 2017” creates uncertainty.
I looked at this company once before (it’s below my usual Market Cap (£30m) but it was a quiet day news wise so decided to have a look) and my opinion hasn’t changed much. Why is a company with a PBT of about £3m running a £25m+ Net Debt position (the same as it’s Market Cap) and paying a Dividend of 4%+. Why not ditch the Dividend and pay down the Net Debt. If this was a debt free company it would be much more attractive than it is now. It’s on my Avoid list.