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Ambient - Plans to demerge Moneybox in Spring

November 2003

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.

Results for the six months to 31 July were, as Sharewatch readers had expected,  overshadowed by a  decision to demerge Moneybox, which will take place in the spring. Moneybox is the prime reason we recommended the shares last October, a crown jewel in what isotherwise a ragbag mix of investments.   Results for thesix months on a continuing basis were up 14% to £18.4m. Operatinglosses reduced from £4.25m to £3.0m.  Clearly, the decision tofloat Moneybox, where Ambient currently has a 60.1% stake, as a newbusiness rather than reversing it into Ambient where it would bemarred by losses of the other businesses is the correct way to proceed. Of the total sales, Moneybox accounted for £14.1m,up fro ...

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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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