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Moniman, they had the green light for buybacks after the dividend resolution wasn't passed at the AGM and with II's urging them to buy back their own shares instead.
It may well have started today and they have the £1M dividend monies to spend on any such buy back.
they need to get their fingers out of their ****nal's, and get the buyback resolution passed whilst the sp is at these levels...
But I have to say I could probably have conveyed all the gist of the same update written differently and with far less of a hit to the share price.
In actual fact they have more than the 6 weeks to Xmas as they also have the Festive sales period thereafter and through to Jan 18th. Not totally unredeemable imo.
I do wonder however if it was written that way to maximise the number of shares they get to buy back for the £1 Million that was being substituted for the dividend.
Possibly having started this a.m. Somebody looks as if they are buying from 27p.
Topped up my holding this morning.
Big negative sp reaction to news, but BoD actually reported an increase in sales: "In the first half of FY24....total sales growth of 3.4% and a total LFL sales increase of 1.6%" and still £6m adj. EBITDA for FY24. MCap now £18m.
Plenty (£17.5m) of headroom in borrowings, as they are only dipping £2.5m into facility. They ain't going bust.
No mention of the share buy back? Perhaps they will wait a week and then announce whether they it is going ahead or they are holding onto cash for now. Hopefully they can buy a few shares at today's prices or better.
It was shown in the news section for when divs were paid.
There has still been no news on when/if the share buy backs are happening has there?
No dividend Brewman91 but a share buyback program to come instead @WRKS. Buy back the stock and cancel it. Less shares there for others to purchase. Nice to see Killik and Co hopping onboard also and taking another 3% plus out the market.
I think you're might be mixing up all the respective holdings Kelso have.
They pick up a decent dividend in NCC at the end of this month (I believe 30th Nov?) and nice to see things returning to normal over there yesterday with what appears to be a recent seller having cleared.
Fresh TR1 RNS
The shareholders voted against the dividend at the AGM. Company is consulting major shareholders on alternative i.e. share buy back. We await an update...
Am I reading that right that there will be a dividend on the 2nd of Nov?
We want our management teams and boards to be adequately and appropriately rewarded for delivering a good result. Not everyone can be a leader at this level and to get the best in the companies we invest in we need to attract the best. A share price of £1 and good EPS growth will do nicely.
Lol, so the directors get a huge reward at nil cost just for getting the SP back to 60% of what it was 5 years ago...talk about money for nothing, yet more reward for failure, you couldn't make it up...
Well done Kelso...resolution 2 defeated.
".....With respect to Resolution 2, subsequent to the final dividend being proposed in our preliminary results announcement on 30 August 2023, the Company received a variety of views from shareholders on the proposed dividend. Some significant shareholders expressed a preference for share buybacks over dividends and have since voted against this resolution. The Board will now consult further with shareholders regarding alternative capital distributions, including consideration of share buybacks, which form part of the Company's recently updated capital distribution policy......"
You can 'buy a whole store' for less than £50k including stock, fittings, cash (no borrowings) and fully staffed at today's SP.
Just wondering, a nice rise today though so far.
With the cancellation of the divi I would imagine a buy back is on the cards in the very near future.
Circa 5% of the company for the £1m divi costs. Pretty crazy if they don't do it.
Easiest way to improve Earnings per Share in any company is take circa 5% off the table through Share buybacks. Should you would think be good for the share price also with less available to buy.
Now that's some swift work on Kelso's part if they only announced their new investment into The Works on the 25th September with a second purchase and at the time mentioned Buybacks over dividend
"Kelso believes that the business proposition of TheWorks is strong with its focus on affordability and that the valuation is highly attractive at an EV/EBITDA1 of c.1.2x. Kelso is supportive of the current board and has voted for all of the resolutions proposed at the forthcoming general meeting on 4 October 2023, save for the resolution proposing a final dividend of 1.6p per share equating to £1.0 million. Kelso believes that at such valuation levels TheWorks' cash is better served by buying its shares back for cancellation rather than paying dividends."
Research all the Individuals involved in Kelso and the Levers that they have at their disposal to use and you may be able to understand things a bit better. Definite bonus having them onboard imvho.
Cheers , I hadn't seen that RNS .
".........Based on the current proxy votes cast, Resolution 2 is not expected to pass at the AGM......."
A common sense decision, they could cancel 5% of the shares with £1 million buy back.
Read the RNS, jedclampit:
"As of 9.00am on Monday 2 October 2023, votes over a total of 23,366,016 (c.68.97% of total votes cast) Ordinary Shares had been cast by proxy against Resolution 2, the proposed Final Dividend of 1.6 pence per share"
Says who, the AGM is on Wednesday and not voted on yet with regards to the Divi, OK kelso say they do not agree with that divi but they only hold about 2% so shouldn't make any difference.
If The works gives way to someone who only holds 2% then it must be a very weak bod's.
Https://www.lse.co.uk/rns/KLSO/new-investment-theworkscouk-plc-0l51tx2gt1mj8ac.html
It looks like Kelso have got their way in getting the dividend cancelled..very good result as it would be far better to buy back shares with the money as it would yield a better return for shareholders...
Good morning NoSweat, just like you I have been following these for months and thought at this price they are a dead cert . I will buy at 29p-30p get the divi and sell quick to buy back in, but sod's law kicked in again and I am still out.
So this week I thought I will buy back in to GNC such a great price now and what happens they have gone down.
You would think after 40+ years we could get something right. just now and again !!!!!!!!
Here we are as I have commented previously, The Works is doing well and the price is rising it will be 65p/75p in a matter of time.
Wilko used to sell some good stationary and packaging materials. It is a shame Wilko went under but the top and bottom of it is you could buy their products cheaper elswhere, even with the closing down sale prices.
But I always bought Brown packaging tape from there and other of their stationary range. A lot of students buy their stationary from Wilko.
So it would be wise that The Works concentrated on the stationary side to pick up on the Wilko product range and see where they might capitalise on this niche in the market, and maybe some other products that they sell/used to sell.
GL
At 30p I thought about buying in WRKS but concluded that once the dividend was issued the price would drop back below what I'd bought at and so negate any gain from divs. I might have got this wrong!