London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Can this company survive? I see this eventually ending up in someone's hands, leaving nothing for the personal investor, and this be delisted. Sadly.
They have 40 mil pounds from the capital reduction of share premium. I dont understand what they are waiting for. They had mandate for the share buyback in the AGM. Management is too slow to proceed.
Kotichava
Do you think they got £40,000,000 to actually buy back shares with? They got £3,000,000 or had that amount in cash but that is eaten up completely by debt and with trading deteriorating that cash will evaporate entirely. Leaving them with the option of another fundraise. Not good at these levels to issue more shares. They got a while left though. The brand looks good but it makes no money. Things could get a lot lot worse.
The Capital Reduction creates additional distributable reserves to the value of £40,000,000, which is intended to support the payment of future dividends to shareholders, with any payment being subject always to the financial performance of the Company and relevant law. The Company does not intend to change its dividend policy following the Capital Reduction and the creation of distributable reserves.
They dont have much debt. According to last accounts, · Net debt £3.6m (HY22: net cash £1.3m) with cash and cash equivalents of £3.3m.
Net debt is not much. They don't need to raise. They recently converted capital reduction of 40 mil. They can use that money to pay existing debt.
69% of shares owned by institutional investors. Problem is lack of liquidity. Today 9000 pounds & 108,754 shares transacted, which caused 20.% fall. Once liquidity picks up, it will raise fast like that only.
You need to learn accountancy fast before you loose all of your money. There is no £40 million. They have cancelled this reserve to be able to pay a dividend. It is not money and cannot be used for anything like paying debt.
robizm1001, Go through the reduction of share capital. It is very common . Several companies have done that for share buyback or other use. Only thing is they have limitations of use of capital.
https://www.mondaq.com/uk/shareholders/857790/why-reduce-your-share-capital
I know what it is and it is just an accounting issue. They cannot use that £40 million to pay debt or anything
They can use that pay dividends or share buyback.
AGM resolutions: Resolution 17: Purchase of own shares THAT the Company be generally and unconditionally authorised for the purpose of section 701 of the Companies Act 2006 (the “Act”) to make market purchases (within the meaning of section 693(4) of the Act) of ordinary shares of £0.01 each in the capital of the Company (“Shares”) on such terms and in such manner as the directors may from time to time determine, provided that:
17.1 the maximum aggregate number of Shares which may be purchased is 7,630,211 (being approximately 14.99 percent of the issued ordinary share capital of the Company);
17.2 the minimum price (excluding expenses) which may be paid for each Share is £0.01 (being the nominal amount thereof); and
17.3 the maximum price (excluding expenses) which may be paid for each Share is the higher of:
(a) an amount equal to 105 per cent of the average of the middle market quotations of a Share, as derived from the London Stock Exchange Daily Official List, for the five business days immediately before the day on which
the purchase is made; and
(b) the higher of the price of the last independent trade of a Share and the highest current independent bid for a Share on the trading venue where the purchase is carried out.
The authority conferred by this resolution shall expire (unless previously renewed, varied or revoked by the Company in a general meeting) upon the earlier of the conclusion of the next AGM of the Company and the date which is 15 months from the date of passing of the resolution, save that the Company may, before the expiry of the authority granted by this resolution, enter into a contract to purchase Shares which may be executed wholly or partly after the expiry of such authority,
May be HeresHopin & robizm1001 are shorters or paid to deramp the company. and spread the false information.
Companies do reduction of share premium and keep the money in separate account and can use for the share buyback, dividends or company mergers.
You can see the other company LDG, which have done reduction of share premium.
https://www.lse.co.uk/rns/LDG/synsion-investment-and-intended-further-buyback-zv42lhepbh6odzv.html
Proposed Share Buyback
On 14 January 2022, the Company announced a reduction of capital, change of Investing Policy and share buyback (the "Prior Buyback"). Shareholder approval to complete the Prior Buyback was obtained on 31 January 2022 and, pursuant to the Prior Buyback, the Company acquired 140,441,180 ordinary shares of 1 pence each in the capital of the Company ("Ordinary Shares"), in market trades via its retained broker, at an average price of 15.7 pence per share, between 25 February 2022 and 6 April 2022. Following completion of the Prior Buyback, the Company has made a number of new investments, however, trading in the Company's Ordinary Shares has returned to a level which represents a significant discount to the Company's net asset value (NAV) per Ordinary Share.
If you can search, you will find lots of examples.
As you suggest there is no money, that is called fraud & management will go to prison. Share premium has to be managed on separate account and shown separately in balance sheet.
In the 2021 accounts, share premium was shown separately and Share premium account contains £59,436,003. In the 2022 full year accounts that will be reduced by £40,000,000.
We have to see what management will do that money. They have few options only. Reserve created on such reduction can be treated as a realised profit and, therefore, it may be distributed to shareholders or used to buy back shares.
Hi. Been buying this. As I have commented on other boards, it lacks some of the downside that I typically seek but I think the franchise is a strong one and that the equity will re-rate meaningfully *if* (big if) they get through this cycle without needing to raise fresh capital. Personally, I do think there's a risk that this could delist and so I wouldn't want to hold this in an ISA or with a broker that doesn't allow you to own unlisted shares. (ii do by the way). It's an interesting risk/reward and I have position sized accordingly and I wish everyone the best of luck and look forward to sharing info / discussing updates etc.
Use II Catabrit and thank you for information. Bought small amount as punt just recently knowning might lose it all or multiply it.