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Scotty Group is consolidating its shares.
If it is passed by shareholders at the general meeting on 11 September, the 50-for-one consolidation should happen soon after.
The consolidation has been timed to coincide with a strong trading performance by the video telecoms equipment developer. Operating profits in the year to July 2008 will be higher than the £600,000 originally forecast.
One of the problems for companies when they consolidate shares is that the consolidated price can drift back down. Carrying out the consolidation at a time when the business is trading well will help to keep the share price up.
Scotty used to be known as Motion Media. It transferred from the Main Market to Aim on 2 January 2003. At that time the share price was 3.5p – so the consolidated equivalent is 175p.
At 1.78p a share, Scotty is valued at £17.9m.
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