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Eurodis - Slight inprovement in Europe ECD market

March 2004

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.

At the same time as  reporting first half results for the six months to 30 November, Eurodis has announced the long awaited  placing and  2-for-1 open offer at 5p to raise £35.3m net and which secures its future. Clearly, the £17m raised last September was insufficient and this had meant that despite a small pickup in market conditions during the first half, Eurodis had been in no position to avail of it. Its suppliers had reduced the credit terms available to it  and with lower levels of stock, service levels went down; meanwhile  lenders had tightened their inventory financing facilities. Sales for the six months to 30 November therefore declined by 25% to £117m and the loss before restructuri ...

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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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