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You can't knock the continued profits, but not much use if they fail to ensure a mechanism to distribute such - dividend clarification announcement in November now.
AS ever, patience required.
At last an RNS to clarify. 5p / share reserved for dividend or capital return.
Be more happy with with dividend , but then it does not matter both ways.
Some companies are doing share buyback instead of interim dividends, I’m happy with that if Steppe choose this option.
Have to say bought into today , there are issues with Interim dividends but not so on year end dividends.
This is across the globe to stop company's paying dividends then 4 months latter going bankrupt.
Problem is the legislation for this across the globe is out of synch.
So expecting Full year dividend to be announced at full year accounts.
Pathetic performance by the company, appears to only want to keep its majority shareholders happy.
well they've had several months to navigate it, so one would hope so; doubtless we will find out tommorow.
Announcement this week?
addendum to my last post...
i think the issue is not Kazahkstan but the Netherlands. All the income/profit comes through there to Malaysia - and the Netherlands are a well known postboxer/taxwasher, so at the point it is received in Malaysia, immediately before it has paid zero corporate tax, irrespective of whether the source of generation has paid equivalency taxes.
jakito et al; unless in a 'free trade zone', the Kazakhstan effective rate of tax is equivalent to the Malaysian authorities minimum tax requirement, so don't see a problem, just as i haven't quite understood why Steppe has, and seems to be struggling to navigate.
Whilst rarely a fan, the quick solution here is to launch a share buyback. Those that chased margin on divvy can realise their profit, those that believe in the long term will concentrate their belief, giving time to find a long term solution.
Looks like this was clarified by the Malaysian authorities recently.
Suspect the dividend announcement is incoming.
https://www.thesundaily.my/home/taxation-of-foreign-source-income-the-saga-continues-HH9494786
I bought the Shares in this company cause of generous divi, and last thing we needed was to say they wished they would pay 5P this year only to say well sorry we can’t cause our Malaysian investors will lose money cause of their country tax changes
This is a company with many nations invested in
So to hold everyone hostage cause otherwise the Malaysian investors may get upset is nothing short of typical scam
As I said they can declare the divi pay to everyone else who is not Malaysian and hold the monies for those who are on account till their tax issues are resolved
I got so fed up for lack of news on divi that yesterday I paid myself the 5P profit on 20000 share I had bought 4 months ago at 28.5 sold at 34 and bought Abdn at 162 which pay over 9% divi I suggest everyone to take a look at this option if you are in profit
The short answer is no I did not, I just thought maybe other shareholders may have some news on Divi
I know last year the divi was paid at the end of July but this year we past this date and all we got in the update in full year result was they can’t declare what they wish to pay cause of some Malaysian investors having some tax changes which will affect any foreign earnings
But I find this very strange why should the other holders be held hostage to some Malaysian investors tax problems in their country
This is just an excuse to hold the cash on account where in Kazakhstan they can earn 15% interest on monies put in deposit account
So the whole thing is a scam
DYOR
I did contact the company about this but no response. Was not really expecting much as presumably news would have to be in a RNS. Still if enough query it may encourage early release.
alavib; have you addressed progress on the dividend directly to the Company?
Hi all
Can anyone tell me what is happening with the divi payment for this Share, I had heard a rumor of 3.5p
I know the company had previously stated that they wished to pay 5P, but came up with that unheard of story saying their Malaysian investors have some tax changes in their country so the divi is held till that problem is resolved
What is that got to do with the price of bread!!why can’t the company pay the divi to others who have no tax issues in their countries and hold the Malaysian divi on hold till they have resolved their tax
Any news as to why the company had not issued any update on divi payment will be much appreciated
there hss been 5 large sells today
I see we're down ~10%. I can't see anything officially released about the AGM or dividend payment.
Nice update to day. Static production but sales nigh on 20% higher. Very much business as usual....
Of course the update we are all waiting on is the divvy announcement.
anyone submitted a question for the board!!!! i have
Where do you see the company in 5 years time
thanks jezzahold ; pretty much summed up my views here!
With regard to....."Eventually funds will have to be retained fo capital reinvestment but their success should enable such funds to be acquired at reasonable rates while continuing to give shareholders a return"......
Personally, having been here 3 years and seen their steady progressive stewardship in that time, i'd prefer a combination of reducing/retaining dividends in association with their ongoing investment for any new capital investment.
And yes, the previous divvy postponement, and the current consideration are obviously dictated by the majority holders interests, but the clear open messaging by STCM also shows they are not oblivious to those like me riding their coat tails.
Thanks your thoughts.
Hi damofari
I am an accountant, commercial not tax , and have been invested for 12 months
I looked at Malaysian tax changes and by my reading they have been deferred for 4 years - but I may be wrong
It must be said that the interim dividend was deferred due to changes in Kazakhstan tax rules not any changes in Ma la Malaysian rules which appear to be the possible restriction now.
A look at the principal shareholders on the website indicate why it might be an issue now
Us PI's in the UK,and elsewhere, are a significant minority in this case
The results for the year are excellent, the switch to KZT loans has eliminated a significant Forex loss, and clearly the company is operating in an efficient manner
Like you I don't like buybacks; let the investors decide where their funds are invested. One has to say that the proposed dividend reflects the stability of a well run company.
Eventually funds will have to be retained fo capital reinvestment but their success should enable such funds to be acquired at reasonable rates while continuing to give shareholders a return.
The company has , or at least by all the evidence, to have been well run but clearly the opportunities for the minority are subject to the status of the majority.
Let's wait and see - based on the dividend even with any Kazakhstan risk factors the share is significantly underrated and a great earner for the future
All my own opinion
I'm no tax expert but done a bit of digging today, and have to say i'm a little confused on why the taxation on this dividend is a problem - for this year.
The interim was cancelled to avoid taxation, stating at that time that it was interim as opposed to final divvys that would be subject to tax, hence todays suggestion of exploring alternatives to return profits (buybacks) to avoid such taxation.
A cursory google brings up a number of reports on the revised tax regime on overseas earned income, which highlight amongst other things, an alignment with Singapore on overseas income tax treatment and alignment with EU requirements for tax equality. These same reports, from amongst others the likes of KPMG state that there is a transition moratorium until 2026, namely that there is no tax on overseas income until then.
Not sure what this issue is NOW, and that timeframe gives plenty of opportunity to realign/redomicile etc....
Can any legal eagle tax fax contributors explain where my observations are wrong?
I am NO fan of buybacks - i struggle to think of one that worked - but in this instance if it puts the tax reduction into abeyance whilst a tax free solution is found, i think this could be the exception to the rule, as the boring but predictable, infrastructure like fundamentals of this business will owt, in time, for the patient. Even with any tax deduction, it's kerching.