Founder
Mark Hiley was quoted in The Telegraph discussing why there is short interest
in the British industrials corporation.
Boatman
Capital Research recently published a report on Babcock claiming that the
business was in serious jeopardy of losing its biggest customer, the UK
Ministry of Defense, as well as alleging the Chairman Mike Turner has misled
investors. The Telegraph spoke to The Analyst founder Mark Hiley for some more
background on Babcock and what this could mean for the future of the company.
The article is available online here.
The
report had a significant impact on the share price, and the company’s valuation
fell £130m in one day. However, investors are still left wondering how
seriously to take Boatman’s claims. The main issue is that the organization has
so far remained anonymous, and the report is lacking in substantial financial
analysis.
In
speaking to The Telegraph, Mark Hiley stated: ‘We understand why Babcock has a
short interest – it’s got the same warning signs in the accounts of the sort
that we’ve seen in other companies which hit trouble such as poor cash
conversion, issues with receivables, slowing organic growth, and political
risk.’
