RM2 International: another cash guzzling Woodford failure
The suspension of trading in the shares of pallet maker RM2 International is yet another embarrassment for Neil Woodford. While the failure of this business has looked inevitable for some time, don’t be misled by its current small size, over the years this business burned through a great deal of Woodford’s clients’ money.
AIM-quoted RM2 International (LON: RM2), specialises in the development and manufacture of innovative pallets. The company sought to disrupt the market for ubiquitous wooden pallets by replacing them in select supply chains with its unique track and traceable, ecologically friendly RM2 ELIoT smart pallets. Unfortunately, things haven’t worked out as originally intended.
RM2 arrived on AIM in January 2014 with a market capitalisation of £278m, raising £137m of new money at the time. Invesco funds, then managed by Neil Woodford and his team, were the largest shareholders, owning 40%, having invested a further £72m at IPO. The issued share capital post…
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