21 February 2017 – assets review
Following the previous issues discovered at the group, it has carried out a comprehensive review of its major contracts with the result that assets amounting to £50m will be written off, as will accrued income of some £40m. These provisions will have no cash impact but will serve as part of the cleaning up process being undertaken. We continue to believe that the shares have considerable recovery potential and maintain our recommendation of BUY.