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Yes a very sad state of affairs. It's enough to keep you awake at Night !
With a sector buzzing with M&A ,you would have thought somebody would be prepared to chance their arm here
Where are all the shakers and movers who should be all over this like a rash ?.
So not only did the BODS manage CWD badly they have also made a complete Horlicks of the exit ,a suicide in instalments
You wouldn't want them to sell your house for you !
Events took a turn for the worse in November 2019 with the "sale" of LSH for £38m gross. Not only did they count their chickens before they hatched they renegotiated their banking arrangements on the strength of it just as things were picking up again on the coalface
So with an abortive sale they entered 2020 effectively in breach of banking covenants and a bagful of abortive costs and immediately on the back foot .Still convinced that the Dane would complete the purchase of LSH they entered into merger talks with LSL .
This all fell apart as still a no show from the Dane and left with yet more millions of abortive costs as LSL pulled out and still at the mercy of their banks now dancing to their tune .
Then the pandemic and I must admit I thought that it might all fall apart then.
However it became clear in May that the lockdown meaures had done CWD a cashflow favour.
First and foremost the expensive wage bill was furloughed and they were allowed to defer HMRC payments
Meanwhile all that momentum in Jan /Feb ,the sales weren't falling apart but delayed so as lockdown opened up in May / June they hit the ground running
Opportunity knocks ,stamp duty relief and definitely a time to join the game and fill your boots Paterson quick to spot but rebuffed by the BODS keen to steamroller the Alchemy deal thru.
However the market continued being robust in early Autumn which the BODS hadn't anticipated whilst the rest of the world had .The Alchemy deal no longer holding any attaction whatsoever
Long had to go and Connells arrive as the cavalry
I reckon if Alchemy had come on the scene a couple of months earlier with just a slightly better offer they might have stolen the show I reckon Long was convinced the deal would happen
At least shareholders can thank Connells for upping the ante. Many shareholders who arrived here in May enjoying a 5/6 bagger
But what about those holding form 3 years ago .Not so rosy!
Shareholders have taken a massive hit. Had hoped to make back some of my losses from buys a few years back. Have held on in the hope, fingers crossed there is still time for another party to join.
This will also hurt some of the staff, acquisitions always have employee fallout especially where there will be crossover in functions .. not a great time to be on the job market