UK 15:42 Monday, 26 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Citi Link went tits up on Christmas Eve. In this podcast I examine how management behaves when on the precipice and then suggest that there will be a raft more administrations in the coming weeks. Finally I suggest that this shows the perils of blindly following celebrity investors.
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Comments
Chris Standing
Tom, not really a big suprise, there’s a pretty strong hint here, of major problems
City Link has progressively deviated from its monthly profit budget during its current year to 31 December 2014 driving the conclusion that its current structure is unsustainable in the long term. This is largely a result of excess (and increasing) capacity in the sector, made worse by customers developing their own delivery capabilities. There are several routes to a better position that are being pursued with a greatly expanded Better Capital team working to support City Link. A 50 per cent. write-down, calculated based on net realisable value, reflects the issues.Page 40
http://www.bettercapital.gg/pdf/Better-Capital-PCC-Limited-30-Sept-2014.pdf