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Fleccy
wow..thanks...oooof
I read this morning
"we expect a large proportion of our capital spend on fibre roll-out to be eligible for the UK government's super-deduction regime, which allows tax relief for qualifying capital expenditure."
which with the way it is written "suggests" that they haven't claimed anything it and it all has to be submitted and checked for eligibility ..which would then come back on the revenue side whilst now the CAPEX is on the expenditure side ..of the books
Bloomberg see tie up with Discovery as positive news. " it will give access to new Discovery streaming service "
Thanks Deepdive
"with regards the super-tax on the CAPEX to be claimed.....is the situation now that they are paying out for the CAPEX but the tax reclaim is sitting on the books , at the moment ?"
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/967202/Super_deduction_factsheet.pdf
I suspect the tax relief benefit wont be realised until Full Year results, but I'm only guessing
https://bteuropecca.webex.com/webappng/sites/bteuropecca/meeting/register/2d9db8ad0a174f82a18677d3deb2c210?ticket=4832534b0000000533d202dffcf749cbd7326bf5ab392ac5b6c0e950f684a0aca8c96927dea53ad9×tamp=1643879118905
I think there is a call at 10am. From recollection last time we see big price drops but after the call it went back up slightly.
"with regards the super-tax on the CAPEX to be claimed.....is the situation now that they are paying out for the CAPEX but the tax reclaim is sitting on the books , at the moment ?"
https://smallbusiness.co.uk/super-deduction-tax-break-what-is-it-and-how-does-it-work-2552304/?gclid=CjwKCAiAl-6PBhBCEiwAc2GOVBizZeKUx0oxIf__pA5zIBtmFU7XLCjYJykDHRZHOK9VWLSKHtlGNhoCi9YQAvD_BwE
"How the super-deduction works
The super-deduction offers 130 per cent first-year relief on qualifying main rate plant and machinery investments from April 1 2021 until March 31 2023 for companies.
For most business equipment, there will be a super-deduction of 130 per cent of the expenditure incurred. This will mean that on a spend of £100,000, the corporation tax deduction will be £130,000, giving corporation tax relief at 19 per cent on £130,000, which is £24,700.
Normally such expenditure would either fall within a company’s annual investment allowance and produce relief of only £19,000 or alternatively be tax-relieved at 18 per cent of the cost per annum.
For a company with an accounting year to 31 March, the super-deduction calculation is straightforward. That’s also the case for any other year-end providing the year-end falls before April 1 2023 – for example expenditure in the year to December 31 2022.
“But it’s very different for the next accounting year,” said Will Silsby, technical officer at the Association of Taxation Technicians (ATT). “Where that year begins before April 1 2023 but ends after that date, the super-deduction 130 per cent percentage is reduced in order to ensure that a company paying corporation tax at the 25 per cent main rate from that date does not get both the 30 per cent enhancement on its expenditure up to March 31 2023 and tax relief on that expenditure at 25 per cent.”
Silsby adds that in the drafting process, the situation of companies entitled to the SPR appears to have been overlooked. “They still incur the reduction of the super-deduction percentage despite the fact that they will only get tax relief at 19 per cent,” he said.
Taking the example of a company which incurs qualifying expenditure of £20,000 in the first three months of its year to December 31 2023, it will be entitled to the super-deduction but only at 107.4 per cent rather than 130 per cent. So the £20,000 is enhanced to £21,480 (instead of £26,000) and with the SPR rate of 19 per cent, the tax reduction on the expenditure will be £4,081.20 (which is 20.4% of £20,000). If the same expenditure had been incurred in the company’s year to December 31 2022, the tax reduction would have been £4,940 (which is 24.7 per cent of £20,000).
Nigel May, partner at MHA MacIntyre Hudson, said: “Companies looking to use this relief will need to take care when the assets that the expenditure relates to are sold: tax charges may then arise clawing back the relief. It is perhaps worth noting that certain expenditure is excluded, in particular the acquisition of compa
Scad
Even if involved with telecommunications ...if you offer broadband etc then you need customers to use it, and with challenging market conditions..you have to offer a strong competitive package
'BT shouldn't be in the business of sports' They're not. They're in the business of broadcasting Sport which is completely different. The build of a network to broadcast popular sporting activities brings revenue, recognition (brand), and spin off services that domestic customers can enjoy.
"No I think you miss the point. BT shouldn't be in the business of sports, they should be focussing on what they do well and that is telecommunications. Any JV means that BT are going to still be involved in the business of sports."
Once BT sport is embedded within the JV, then BT will have divested of it anyway. There's a lot going on around US media streaming companies, BT must have had good reason to follow the JV route, with Discovery, rather than selling to DAZN. Maybe DAZN tried to squeeze BT, and put too many conditions on the sale; Maybe BT see better value in the JV, with a better price from a sale to Discovery later. I expect BT will probably sell their share in the JV, to Discovery, somewhere down the road.
Fleccy
with regards the super-tax on the CAPEX to be claimed.....is the situation now that they are paying out for the CAPEX but the tax reclaim is sitting on the books , at the moment ?
The DAZN finances situation was not good and now seemed dependent on an IPO ..for which the Billionaire investor would no doubt look to recoup some of the losses of development ....
With the very competitive market for customers ..I personally think the Discovery deal will be attractive to existing and new customers , once it all gets off the ground and moving...
No I think you miss the point. BT shouldn't be in the business of sports, they should be focussing on what they do well and that is telecommunications. Any JV means that BT are going to still be involved in the business of sports. The best thing that they could've done was dump their sports bags on someone else. Turns out that obviously wasnt possible so BT are still involved in the business of sports. Happy freaking days.
Pokerchips - for about two weeks.
Should be looking at the future and the bigger picture here. BTs strategy is strong and we have a good CEO with a great track record.
BUZBY320 - yes, and the recent upgrades suggest you're right on this point.
Yes, fleccy, I spotted that AT&T story yesterday too. I was going to post it here for others to mull over, but then thought "Nah, it won't be relevant by tomorrow.' D'OH!!
"I'm not bothered about daily share price movements, the market will decide this. The bigger picture is that once FTTP is built by year end 2025 BT will be in a very strong position for years to come churning out very good dividends."
I agree, todays fall was primed at the weekend with the usual pre-result speculative articles about VMO2, and I believe this mornings drop would have happened irrespective of the results, and we should have expected it in view of previous price action on results days.
Grats to those who bought in on the drop, already back up ~5p
Wait for the 10am call?
Do you have a link pls - looked on Investoe Relations but cannot see?
I have confidence in our CEO Phillip Jansen, he's doing a very good job to date, and IMO he will do the best thing for BT shareholders. I'm not bothered about daily share price movements, the market will decide this. The bigger picture is that once FTTP is built by year end 2025 BT will be in a very strong position for years to come churning out very good dividends. I'm happy to hold BT for the forseeable future.
Wait for the 10am call, I think it'll bounce back slightly. I care more about their f23 numbers more.
Is this a stop loss raid by the criminals?
This will bounce and tick back up.
"Just to bounce hard the next day. As per last year"
It's all part of the shake out and mop up strategy, the big players use, in my opinion.
£1.85