By Steve Moore | Tuesday 14 February 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Following another profit warning earlier this month and now with a single operating subsidiary, Pebble Beach Systems (PEB, the former Vislink plc) has announced the closure of its head office function – including notice being served on Executive Chairman John Hawkins.
The move comes post the latest disposal update and with the head office function considered “no longer appropriate” with the company now comprising a single operating business operating from a stand-alone site.
John Hawkins “has ceased, with immediate effect, to carry out the role of Executive Chairman”, with a present non-executive director, John Varney, to become Non-Executive Chairman, and “notice has also been served on the 6 members of the Head Office team”.
It is added that “following the most recent meeting with the bank on 13 February 2017, the bank remains supportive of the company”, with there having been no change in the situation since the recent profit warning announcement.
That the company is having to rely on the bank remaining supportive is an indictment of Hawkins’ tenure here – as are some disgraceful boardroom remuneration scenes. Good riddance.
However, although this is a cost-reduction start, what happens in the next month or so is of critical importance and with, even if this goes to plan, much still to prove thereafter, I currently continue to consider this a bargepole stock.
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