Conviviality has not been Questor’s finest hour. We tipped shares in the Aim-quoted drinks distributor for our Inheritance Tax Portfolio three weeks ago at 288p and a stream of bad news promptly ensued. The upshot is that the shares stand suspended at 101.2p.
A fall of 65pc would be hard to bear in any event but we must be braced for the likelihood that the shares will fall further if and when trading resumes. The group has admitted that it could go bust.
What has gone wrong?
The first bad news came on March 8, when the company said profits (on an “Ebitda” basis) would be 20pc below previous expectations, partly because of “a material error in the financial forecasts”. The shares slumped by 60pc...