Every year the bod put together an incentive plan for the bod to earn free shares, usually it's against set targets but they never set the targets so they can NOT be achieved, every AGM the share holders have the chance to vote against it but that never happens because of the way the wording is always done so it's basically free shares every year. Now they can not give them shares out of a pot so they create new shares to give away, and that's what these new 3m shares are probably going to be used for. It's just dilution every year.
But in previous years they haven't made anything like those cash payments to the fund and had a rights issue - agree management have done a good job overal but with debt interest repayments at 6-7% on 535m and pension payments of 40-50m and investing in marketing there is very little cash left to reduce debt - if top line grows strongly then sure but doesn't leave much scope for a slight downturn
They have attractive assets and debt (and pension deficit free) would be a beautiful and cash cow but without deep pockets it is a bit risky hence low valuation
Japanese Yen appreciating against Sterling over the last few months and still continuing. I personally think this makes it interesting for Nissin to consider PFD. Purely speculating, as this could be far from their intentions, but makes me wonder.
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