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Eurodis Electron - Dresdner issue post-placing note

May 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.

In its first research note since the placing and open offer at 5p in February (which raised Eu57.2m), Dresdner Kleinwort suggests that there are now some encouraging signs of recovery in the ECD sector, with Eurodis expected to show a steady improvement in sales and return to profit in the second half of the year which starts in June. Overall, it is expected to report a loss of £20.4m for the year about to end, reducing to £3.8m for the year starting on 1 June and returning to a £7.4m profit after goodwill (adjusted eps of 0.5p) the following year. Following some recent restructuring, year end debt for May'04 is expected to fall to Eu70.3m (compared to  Eu82.4m at the end of November) but will rise to Eu78.4 ...

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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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