I think in spite of the half year results being good the price is feeling a bit of a lag from the issue of the additional equity, effectively leveraging down the business, and the upfront cost of the additional investment.

On the investment side, my estimate is that there would be £100k cost for the additional staff (6 months of £400k over 2 years), plus an unknown amount for investment in systems (cash outflow, P&L depreciation).

I don’t necessarily see the investment holding the earnings growth back substantially, but I think the combination of the equity issue, and the up-front investment, has led to investors taking a “wait and see” approach.