Mike Norris, CEO of Reece Cycles plc, rang today after a Reece rep and quite a few of their customers had jumped to the wrong conclusion following the running of the story at http://www.bikebiz.co.uk/.../article.php3?id=784.
This clearly said the article in the Investors Chronicle was suspect yet when we carried the full article, people have read it as gospel.
The IC article is written purely from the Reece plc side, with no input from Reece Cycles plc. The losses said to be incurred on the cycle side were clearly from Reece plc write-offs and write-downs performed after Mike Norris bought out Reece Cycles plc.
However, as some people took the IC piece verbatim its time to nail this story down. Our piece was headed Investors Chronicle couldve been clearer and was an attempt to show the IC piece to be muddled.
After it was stated that we didnt have much confidence in the wording of the IC article we expected people to read between the lines. Some people took the figures and the amazing losses at face value, hence the call from Mike Norris.
He said the BikeBiz article was fair but because it included the full text of the IC article, some people were walking away with the wrong impression of Reece Cycles plc:
We completely re-structuered the business, Norris told us. Were trading profitably and are well funded by General Motors and the Bank of New York.