We noted yesterday’s unwelcome news in relation to the receipt of a claim by the JVL’s of the company’s former subsidiary – MRS Guernsey Ltd.

Following discussion with management we believe the line that the claim is without merit and expect this matter to be resolved without litigation relatively quickly. Indeed as MRS Guernsey was a loss making entity (the reason for the liquidation) we struggle to comprehend how the subsidiary could have loaned the parent company $3.6m.

Separately, we were reassured on the current trading front and stand by our estimates for 2018. At the current price the shares trade at less than 4 times EV:EBITDA 2018 estimates – a figure we see as too low.

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