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MSB - Poised for market recovery

November 2002

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Following its August trading statement, results when they were released contained no new surprises. Sales for the six months to 31 July were down 43% to £47.6m on the first half a year ago, or down 23% on the second half of last year. This is a much higher drop than Spring(see page 7) largely as a result of a higher element of spot basis workwhich, albeit higher margin, is more volatile than preferred supplier agreements (PSAs).   On the positive side, the loweractivity levels resulted in unwinding working capital which meant netdebt of £3.4m in January has now been converted to net cash of £2.7m.However, unless turnover declines even further, this cash improvementlooks about it for the moment.  There was a furth ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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