Pretty much summed up my thoughts re conversion at the moment.
PGC needs scale (given its rather lowish margins) - and they need the big government contracts to give them the big revenue uplifts. They have a pretty good track record at securing some big tenders, so it comes down to whether you believe the directors that this is just a short term slow down in government health spending.
Even if there is a pick up, its not going to be reflected until the FY13 accounts which is a fair way away...so a fair bit of risk, in the short term at least.
I'm thinking I will be comfortable with probably converting half of my options, which, given the risk, will not over expose me in terms of my portfolio weighting