HIBU “little or no value”

HIBU released a chilling RNS today, which has sent the shares down 20% as at writing:

A number of capital structure options are being considered and these are likely to result in little or no value being attributed to the Group’s ordinary shares.

Pretty much as I expected.

EBITDA and PBT is down, although net debt was reduced by 5%. Total digital revenues was down 0.9% (not good!) represents 33% of group total. Then we have this:

The Board concluded that adoption of the going concern basis in preparing the financial statements is appropriate, because the Group is cash generative and the directors believe that the lenders will achieve a higher recovery on their loans by letting the business continue to operate as a going concern rather than by any other course of action. Therefore, the financial information contained herein has been prepared on a going concern basis. Nevertheless, the directors are making full disclosure to indicate the existence of a material uncertainty, which may cast significant doubt about the Group’s ability to continue as a going concern.

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About mcturra2000

Computer programmer living in Scotland.
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One Response to HIBU “little or no value”

  1. Gareth says:

    So why on earth did Bob Wigley say is an RNS only a few months before that shareholders would be protected to the fullest extend.

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