Investor's Champion Blog
Provides refreshingly forthright, independent comment on predominantly small cap companies and specialist investment funds. Informed opinion, based on first-hand research, but pulls no punches in exposing management weaknesses.

DOBBIES GARDEN CENTRES – a profit warning, but who cares

So Dobbies Garden Centres, soon to be part of the Tesco’s empire, has announced that as a result of the poor weather over the key summer months it’s going to miss sales targets-not exactly a surprise!

Apparently sales of garden furniture, plants and core gardening products have fallen short of expectations-no amazing!.

However, the recent batch of advisory fees incurred really are impressive. Total fees payable by Dobbies in connection with the offer by Tesco Holdings and related corporate activity are expected to be approximately £2.8m-wow!

I really can’t see the relevance given the current deal situation. Dobbies’ stratospheric share price has nothing to do with trading and is simply a reflection of the efforts of the Hunter and the grocery (ok, they do sell other things) boys from Hertfordshire.

Surely those shareholders with their heads firmly attached will be lapping up the 1500p offer.

 

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