..as despite EU leaders trying to tell Greek voters that a No vote would be a No to the Euro here we are again with another last chance to do a deal by this weekend, although supposedly they have a plan B which allows for a Grexit. I guess we'll have to wait and see again. Or it could be Georgehog day as we have another budget today from George Osborne.
Meanwhile in the UK stock market all the on going concerns over Greece forced the FTSE down into the support zone between 6200 and 6400 that I suggested recently. We also had an in line update from Interserve (IRV) who saw a slow down in construction in the UK but did flag some big orders they have won recently. There was a slightly better than expected updated from Connect (CNCT) bolstered by their acquisition last year. Both look good value but weak finances somewhat detract from the bull case and may help to explain the low ratings.
The other more interesting announcement yesterday came from S&U (SUS) who revealed an unsolicited approach for their home credit business from the new business Non-Standard Finance which was set up by the former Chairman of Provident Financial and back by Woodford Asset management among others. This is quite a big move for S&U as this has been the core of their business for years and their plan is to reinvest some of the proceeds into their more recently established and rapidly growing car finance business. The other effect will be to leave them with cash on the balance sheet and once they have worked out their capital requirements and investment plans they say they will consider a return of capital to shareholders after consulting with them.
This was quite well received with the share up a few percentage points in a soggy market yesterday. However, they did suggest that it will dilute their earning in the second half so it will be interesting to see if it can sustain a re-rating on the back of this given the higher growth and returns that they get from the car finance business. I just hope they are not going nap on it just as the latest UK consumer debt fuelled boom gets back into top gear again and car sales hit record highs.