ANITE TO ROCKET ON RESULTS

Okay - Now read the YE report.
Sold off its IT staffing business.
Bodyshop profits grew to 73.2m and gave 8.8m to Profits.
Good. Concentrating on its core products.
Telecom
Travel
Public Sector
Finance
Program of selling off its non-core businesses. V.Good.
Sold IT Personal at 2.2m loss
Grants execisable options to staff. Bad - Dilutes shareholder value.

Made a lot of Aquisitions in Bodyshopping.
Bought DataVance - French e-bodyshop - £51.4m - £2.2m to profits.
German Banking company BIV has margin of 13%.
GMQ EPR operation has been restructured - will it make a profit?
Q&R consultancy -
A string of purchases to complement it's core operations.
Good.

The key driver of growth is not the consultancy business itself, but the selling of Industry product solutions and then intergration. The consultancy comes after this process.
The products - I don't understand them. Bad.
But they seem to be generating market share and growth and profits.
So the core businesses seem good, and to be able to generate cash and growth.
But where is it going? £4m has to go into R&D to keep competitive.
These aquisitions may/should expand sales to provide the growth needed.

From reading the Financial summary:
RED FLAG!
Worringly the company has granted about 11m options @ 145-180p as part of its executive perks scheme, and has applied to the IR to open the printing presses to print more. When a company grants an option its really 'stealing' money from existing shareholders as the total amount of shares increase. This makes each share worth less. It also reduces earnings per share. It certainly not in the shareholders interest. The damage that this will cause to the existing shareholders is not contained as there is no upper limit on the options.
In this year alone about £176 million in share options has been granted to be exercised in 3 years.
As of 2001 total shareholder funds are listed as £148.8m.

The core businesses seems very good - high growth niche market products. But this is not enough. The mangement has to act in the best interest of the shareholders. The management have turned on the printing press to line their pockets and will sell piles of paper when the share price creeps upto 160. They will print as much of this as they want. Thats without the worries that you may have about the impact of the recession. Also the rosy growth picture - it hasn't translated into profits.
STAY AWAY!!!!!