The problems with PUG are easy to see.
1. They haven't met forecasts.
2. Lot of debt. More of a problem because of 1.
3. Therefore they have to issue shares instead of cash for some of the deferred payments causing more problems for 1.
It would seem to me it would be worth paying cash for some of these deferred shares rather than equity at these levels. They have got rid of £4m in a nice deal with Granville Baird which in effect lost GB £3m.
The problems I see as essentially short term. The public sector is always going to be short of people and they cannot organise it themselves on the sort of margins that PUG work on. There was an article in the Times which wil be good news;
There is a lot of confusion at the moment regarding trading, debt and equity, but once the dust clears it will be seen to be very cheap at these levels IMHO.
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