This highly-leveraged company has similarities with last week’s short selling idea, Speedy Hire.
It has a network of 139 showrooms, giving it high operational gearing, and with £125m of net borrowings against shareholders’ funds of £111.5m it has high financial gearing.
In October last year it acquired the 31 outlet Dutton Forshaw motor retail group from Lloyds TSB for £28m in cash plus taking on £32m in debt, a deal which it would probably now prefer not to have done.
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