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Is this a new subsidiary owned by PFD?
I don't recall pfd being involved in making pizza bases.
Agreed but I think they mean operating cash flow minus ( pension contributions + interest on debt). They then talk about free cash flow being used to reduce debt and maybe some dividends . They seem to think profits will fall back this coming year
depends on which way this is looked at. There are additional costs that would reduce free cash flow this year i.e. cash to reduce debt, couple examples below
1. £12m refinancing cost ( this includes £4.8m early redemption of existing fixed notes), but hoping this is lower due to better ratings.
2. £11m dividends ( includes 2.5m pension contribution)
I don't understand how they come to a free cash flow of "between 30 and 40 million gbp after pension contributions" for the next year
Good morning Kall, yes alll very interesting and very positive but now lets see the SP go up to where it should. £1.30- £1.50.
Thanks for the explanation Kallumama
From what you said it would be better for PFD to off-load the pensions to a third-party pension accumulator like Phoenix Group which may even pay PFD to take it off its hands, that would be result!
If the combined fund is in surplus, then why do we make extended contribution ?
From this years statement
Total pension contributions in the period were GBP47.0m (2019/20: GBP44.7m), due to previously agreed planned increases in deficit contribution payments to the Premier Foods pension scheme. Of this, pension deficit contribution payments were GBP39.1m and administration costs including pension levy costs were GBP7.9m.
The IAS 19 pension schemes valuation reported a surplus for the combined RHM and Premier Foods' pension schemes at 3 April 2021 of GBP539.9m, GBP690.5m lower than 28 March 2020. Net of deferred tax, the combined surplus at 3 April 2021 was GBP437.3m. A deferred tax rate of 19.0% is deducted from the IAS19 retirement benefit valuation of the Group's schemes to reflect the fact that pension deficit contributions made to the Group's pension schemes are allowable for tax.
No, a broken clock is right twice a day
3mil shares brought yday at close of business and another 2mil. Great to see new investors getting in at these levels. Should provide good support.
Just got back home and seen the latest rns, great news now let's see some very good up-grades from many brokers.
£1.30- £1.50 must now be on the cards.
I think many on this board are conscious of the progress PFD has made recently but I'm sure that the wider world hasn't fully grasped this yet. I've been looking at the company's results going back 3 years. Don't necessarily trust my figures without doing your own research, but for me the highlights are,
* Tidier corporate structure: Hovis disposal, pensions merger addresses iceberg of high Premier Foods pension scheme deficit.
* Combined pension scheme setup now sustainable
* Debt down to 1.9x EBITDA at 3.5% from 3.56x and 6.5%
* Better execution; focus on branded vs. unbranded so better profit margins
* No longer struggling to stay above water so able to invest in e.g. marketing when needed; also in a stronger position when negotiating pricing with retailers.
I recognise that there's a temporary boost from the pandemic for PFD's products but I feel the company has used that boost very prudently with paying down debt and the latest refinancing to go alongside the pensions merger benefits: It's no longer a debt pile and pension liability pulling a company along - notice the combined effect of having lower debt and lower interest on that debt, so the total interest is now less than a third of what it was 3+ years ago (and PFD has stated that it has a medium-term goal of getting that debt down to 1.5x, it won't take it long given it's current momentum).
So at some point when the pandemic boost has passed I'd expect to revert to trading at levels closer to historic sales, but without being hobbled by high debt and a high pension scheme deficit: This will be Premier showing its potential.
looking forward to reading about this in the Sunday newspapers. From "Zombie" to "Star Performer"
Another 1p dividend added per year without doing anything.
Only see broker upgrades and increase in SP
guess Pernix needs more time to know how the market works, perhaps another 40 years needed
£8M saved per year
Pernix 70pence !?
It’s going up again !!
Even a broken clock is more accurate than you !
Just popped in for a moment
And wow a real heavy weight contest going on :)
In the end we all make our own choices...noone here is stupid...and thanks for all the informative contributions everyone
Dartford
Your comment below sums up my feelings just before the spike...and to be fair I don't think anyone outside of the board room really knows why the SP is where it is...my thinking is that when the 'Paulson sell off' stops...things will level out at start to move up again
I'm watching with interest
Kind regards for now
The Jimbo Jimster
I'm sure we all know that info was referring to interest/dividend yield
Kallumama. You obviously didn't read my next post quoting "yield".
No need to lecture me on basic finance thanks
Kallumama: You just don’t get it. No one investor influences share prices unless they are big players. Every investor takes a view whether shares go up or down. So I can buy whatever shares I want at whatever price. What do you care.
Yield
Info. Let's not forget that many will have an average significantly lower than 100p so could have ROC of up to 4%.
Kallumama: We all know Premier Foods shares will go up in the long term, maybe a couple of years. You are no Investor sage in claiming that & who wants to buy your house anyway? I am talking about to the short /medium term share price. That’s going down.
The chances are that Paulson is continuing to reduce its holding and this, as in the recent past, is placing a ceiling on the share price. But hopefully as each week passes we get closer to the end of Paulson's sales, and hence the removal of the tap. Sooner or later I suspect Oasis will want to reduce its holding to a more normal portfolio holding, say 5%, but with luck, not at these prices. I agree with Kall that this is one for patience. Meanwhile we have the interesting and positive refinancing news to come.