Ann: Consolidation/Split - LON, page-39

“A few posters (one in particular a number of times) have suggested they’re doing it to make it easier for them to raise capital in the future. Frankly I find this pretty unlikely, and have discounted it as just a chance to downram”

Well you may find it unlikely but the company doesn’t :
Mr Robinson also said that having so many shares on issue previously was a handicap in managing the share base and for any future capital raisings should they be required to fund acquisitions.
"It was a nonsense amount."

They don’t have the cashflow to improve the business quickly. They are only going to be able to do this by acquisitions. Hence the share consolidation to make it easier to raise funds.
They will announce a CR and the share price will retreat to that level. If you are in know you have to ask yourself am I better off pulling my money and waiting for the cheaper prices to buy back in. The positive about this is that they must be currently doing due diligence on potential acquisitions. Depending on what’s on offer will depend on whether it is worth it.
But I would be a bit skeptical on a company that puts 1.5 billion shares on offer, then turns around and consolidates within six months because “we have too many shares on offer” and then virtually announced that it is doing this for further capital raises. Real potential that the next raise won’t even allow retail investors to be involved.