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Ok great, cheers!
Some debt (at least) can be paid off anytime - for example Revolving Credit Facilities can be drawn upon (and paid off) anytime and indeed this represented £40m of the repayment of debt in H1. There is now no remaining money drawn down on this facility so nothing more to pay back on this.
Could debt be called early? that depends on the early redemption clauses the various bonds in question have - note that this debt consists of GBP, USD and EUR debt - presumably each with their own early redemption clauses. Its hard for me to state with any degree of conviction that they can or can't be redeemed early. However, this question is one for 2023 AGM really by which time cash on hand builds up substantially.
Very useful.
I didn't know 'debt can only be reduced as it comes due'... for instance, people pay down their mortgages in advance of the due date (overpay), but this may be different.
GoCPI
Thanks God for NoFear got your ar..ses covered why AimMaster2018 plagued this forum with the same nonsense they've done many times before whilst the majority of you so called 'cpi long' worshippers suck on a lolly as I tried to stay on top of them. Who needs friends to rely on when they're like you.
Hahaha. (^_^)
It's not in the article but in the H1 report. Don't bother with articles they interpret the data the way they want. Better read it straight from Capita
" the full, or majority of, the proceeds of this proposed Pay360 disposal goes towards reducing debt this time." Yes, they will and in particular, pre-IFRS 16 net debt. Debt can only be reduced as it comes due, like the circa £139 million due in November this year and the remainder £294 million repayment is spread over a few years into 2027, with the biggest chunks in 2025 and 2027. The key is for cash on hand to build up on the balance sheet, which it should going forwards, given that the large cash outflow headwinds such as Pension payments and VAT deferall payments are in the rear view.
As I said many times on here, do ignore the noise around IFRS-16 debt levels (net £710 million). Focusing on that is a complete waste of time and amateurish - and that fits the bill for most 'financial newswriters'. Depending on how much Pay360 (and other disposals) realise in cash this year, we could see net debt around £50 million by the end of this year - don't be surprised if this even gets into a positive cash balance. This will open up the doors to dividends and buybacks in 2023 - this is why CPI is such an undervalued play and the focus should be on ignoring daily trading swings and honed in on what 2023 could bring for us.
Thank god that the board is discussing something sensible today versus the boorish BS we've been subjected to over the past few days from NoFear and AimM.
Yes in H1 report they noted that they remain on track to deliver positive free cash flow in 2022 and as well they confirmed they would continue to materially reduce net debt during the course of the year.
Thanks guys, I've got a fuller picture.
Let's hope the full, or majority of, the proceeds of this proposed Pay360 disposal goes towards reducing debt this time.
...should have added that net debt in 2021 reduced by £197m - so over the last 18 months net debt has reduced by £367m - so about half the sale proceeds. The rest has gone on other items like those I listed - plus the £223m this year included about £50m cash passed across as part of the disposals.
Ok, those are indeed plausible Hexam
I didn't see "pre-IFRS 16 net financial debt" getting mentioned in the article eatstocks.
Unhooked.
End of year report covers it but from memory there was over £300m to pay into the pension fund ( now will only need £15/20m each year), £50m from a screwed up update to systems + cash in hand. All these major one offs seem to be finished & all future sales proceeds go directly to reducing debt
That’s why doing research is key - as noted below Pre-IFRS 16 net financial debt1 is £289.3m
Understanding is key to investment and then being able to filter the noise
As well as the £170m only referring to H1 the other, main reason for the gap is that some of the £750m over the last 18 months has been used for things like pension deficit contributions, paying outstanding VAT and restructuring costs. None of these impact 'debt' as included in net debt but all reduce the available cash.
Yes, maybe previous announcements clarify.
It's misleading. They say two things:
Firstly they give the figure for disposals so far this year (£223m).
Secondly they give the figure for disposals in total (more than £750m).
Then they say "Cash from disposals has helped it reduce its debt mountain to £710million, from £880million", but they don't make clear which of the two they are referring to.
Maybe it's deliberately ambiguous, so punters can interpret it as they like, lol! At the very least it's badly written.
What matters is this: "Pre-IFRS 16 net financial debt1 was £289.3m (31 December 2021: £431.4m)."
How is it misleading, it's H1 and covers H1
I guess you have to also read previous announcements too
Ok, but it doesn't read that way. Bit misleading.
That’s the most recent reduction only
What strikes me is what they say at the end of that article. They say total proceeds from the disposal programme has reached more than £750million and yet the net debt (which I thought these proceeds had been allocated to) has reduced by only £170million.
What am I missing here?
II bought 33 million shares not so long ago
They obviously did their research
Bubbles, u make those multiples on aim markets lol ...jg68..not concerned at all, rumours at the most..PI been buying...many PIs stuck at a loss thinking it can't get any lower.. institution on the other hand been offloading in the background hence no real bounce imho
Sharehead, u missed out the key information
'Potential buyers may be eyeing a price LOWER than £200million, partly due to Pay360's exposure to government contracts, which account for around half of its revenue, one source said.'
Also
Sources said it is forecasting around £12million of profits before interest, tax and exceptional costs this year and £15million next.
Yes below 200 m plus selling a business that expected to make 15 million next year
Imho
AimM....? You keep banging on about 'Speculation'. We're fully aware this is a 'Highly Speculative' share. But these are the kind of shares that produce 2×, 3×,5× or even 10× multi-baggers.