Looking at ADVFN, I noticed a mention of a dividend cut. Sure enough, in the prelims issued on 10.4.2015 (http://is.gd/KkGhmN) they announced that the total dividend for the year would be 2.0p, down from 3.5p last year. So ADVFN has its uses.
The RNS mentioned that they had £27.8m in cash. However, there was a purchase of a property subsequently, which drew massive investor concern. I had previously written about this in June (http://is.gd/DspE0w)
Do you want to know what I think? I think the directors are using cashflows from the retail side to bankroll a property empire in Malaysia/Singapore. The directors have past association with property development. Don’t be surprised if there is more of the same. Watch to see if they take on debt to fuel an expansion of their property portfolio. Then there will be no doubt.
The directors can go to the bank and reassure them that their income stream isn’t wholly dependent on rentals, and is therefore a safe bet. Makes sense, right?