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until some good contracts from UK Gov land, this share will be stuck.
punt and hold.
Fingers-crossed the UK Gov finally grows a backbone and implements national ID cards.
Totally simple - comes to the same thing.
Company jumps the gun and asks to be let off £20m of contributions, rather than waiting for the trustees to tell them to reduce contributions at periodic review, which is the usual way.
By the way, it's not a pension company, it's the trustees of DLAR's pension scheme that we're talking about.
...possibly taking a short position. Total declared short interest is currently 1.26%.
Unhooked
# No-one mentioned an overpayment
# no-one mentioned a refund
# adjustments would be reflected in future payment contributions +/-
# the pension company has to agreed to the new norm.
It really is that simple, unless you think the company is lying?
Re Pension news by Sly.
A non story.
Markets reacted, nothing to see and moved on.
It seems
# DLAR have an agreement in place to fund a pension deficit.
# After contributing 50mln already, the company has assessed that as the deficit has improved significantly the terms can be reviewed.
#as an agreement is in place, the Trustees have to agree to the change. This is good practice and a normal procedure.
#DLAR after Sly got hold of a whiff of company confidential DLAR info and had no choice but to comment on Sly's info and confirm that the request has been made. DLAR, pointed out, even if rejected it was not a liquidity issue.
#Rather than just accept that, Sly have conflated, it seems, a summary of the recent woes that are unrelated and the release has spooked already skittish holders.
The story could also have been spun as..
Significant improvements in the company's pension deficit in the last 18 months means funding at previous agreed levels is no longer required. The company has notified the pension trustees of their intention as it normal practice. The pension trustees fiduciary duties are to review the request and will respond in due course.
This article gives an interesting perspective re deficits which in reality are best guesstimates.
https://moneyweek.com/merryns-blog/pension-deficits-arent-real-heres-how-to-fix-them
Aldsworth
You may be right. It may take years to determine the outcome.
Seems to be a pre-emptive move; perhaps to allow stashing of cash to cover any Indian penalty.
If DLAR have overpaid with their pension contributions, the pension trustees would in due course return the excess to the company anyway. So, why are DLAR apparently jumping the gun and asking for £20m back (or at least deferred), if not for "liquidity needs"?
And it's all innuendo from 'sources close to the company', no wonder the market's taken fright.
Sky report re pensions - not really news - deferring £20m to utilise in the business - suits me to top up again - it is not a liquidity issue. Perhaps the recovery in pensions has mitigated the need to fund a closing gap.
Why does everyone run to Sly with confidential information?
A source close to the firm told Sky that its pension deficit, like that of many corporate pension schemes, had improved significantly in the last 18 months.
"The pension scheme has had over £50m from the company in the last three years, so this is a natural rebalancing towards investors who have not done as well," the source said.
They insisted that a rejection of the pension deferral request would have "no adverse" effect because the move was not being driven by liquidity needs.
Wow, sudden drop in the share price out of nowhere... now 60p to sell and a big spread. Nasty!
This fell to 40p a few years ago and recovered to over a quid. This time it will fall so low and rise so much.
Very underpriced, stick with Smaller you well get rewarded imo!
Fancy Odey to up his stake at these levels be rude not to…
A takeover here seems very unlikely to me, in the shorter term. Legal proceedings are pending, there is oversupply in the currency field, and DLAR has recently lost more customers than gained. However this still seems underpriced to me.
I hope you're right Chelmo. I still haven't had the courage to hit the Sell button so maybe I will let it ride a bit longer.
Looks like gapped down on the bid as not normally 3/4p spread, then again 400k vol not bad , I’m sticking with and will be picking more up here as I believe cheap and could easily attract an approach at these crazy levels
Unfortunately there is always a sense that some fresh batch of problems is just over the horizon with this company. I expect there will be a negative RNS issued within a few days. I'm thinking that it is time to bite the bullet, take my losses and find a happier place to invest what remains. Good luck to those that choose to hang on.
No news but why today it drop 7% ? There is something cause this dropped as there is nothing change at all .
With no discernible support it just keeps dropping...
Come on trade buyers, get your cheapo offers in and put us all out of our misery!!
...but receives thanks. Should settle in low 50s.
Will wait for 50p, which is the next support level. The whole market is up today and yet this dropped, not a good sign.
Well done…great minds…I paid 65.8 it’s a steal here
Agree about overreaction. And also topped up.
I'm not sure about rallying hard in the near future, but certainly a recovery from here. I paid 65.95p, a ludicrously low price as I see it.
Big overreaction here, topping up my position as it’s a great recovery stock and will rally hard in near future
I rue the day when I bought these great instutional shares
It's amazing how they squandered the lifeline they were given after the Australian contracts win in 2020, I believe, when shares surged. In the fullness of too, shorts were right after all....
All IMHO DYOR
Happy
Kenya plant mothballed, and corruption investigation in India. Carp!