Answer:
Based on the information you provided, it seems that buying shares in RMX plc when they were first sold could have been a good decision. The demand for RMX’s shares was high when it was privatised, and the share price immediately rose after trading began. The company’s profits between April and September 2022 were almost double what they were in the same period the year before, and its sales rose by 9% from July to September 2022. Additionally, RMX reduced its loans by 20% and improved its cashflow position, which should enable it to pay high dividends. After the publication of these accounts, the company’s share price rose again to £5.60 per share.
However, there are also some potential risks to consider. There is ongoing conflict between RMX and its employees, with the Communication Workers Union (CWU) demanding higher pay rises, greater job security, and protection of pension schemes for RMX employees. Analysts also claim that the business needs more investment to continue modernising and changes to its management style to achieve greater productivity.
Ultimately, whether buying shares in RMX plc when they were first sold was a good decision would depend on an individual’s investment goals and risk tolerance. It is important to carefully evaluate all available information and consider both the potential rewards and risks before making any investment decisions.
Explanation: