The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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In the interims it stated; "The final maturity date for tranche 'A' of the term loans is 31 January 2024, and accordingly the earliest that dividend payments will be considered is during the FY25 financial year."
The key point being that the finals tomorrow will be 'during' the FY25 financial year.
The annual report said;
"the current restrictions on payment of dividends whilst CLBILS facilities and Term Loan A remain in place (to be repaid by 31 January 2024)"
Again, these restrictions should now be removed if these loans have been repaid as planned
As usual with investing, semantics / the words used in an RNS often matter more than the numbers...
Yep I’m with you on the fact that they have hit their requirements in terms of debt paid a leverage ratio also achieved… I just kind of thought they were restricted from paying dividends for anything FY 24 related … hopefully I’m wrong
Sorry BHAVEEN ignore me, I am trying to do several things at once and I am rubbish at multi-tasking!
I was right the first time and we are in FY25 now, because the results due tomorrow are for FY24 .
The only 2 financial conditions that were stopping dividend payment were that the CBILS loan had to be repaid which was done last year, plus the tranche A term loan which only had £4.4m remaining at HY24 in September and which will have been fully paid off by now.
I beg your pardon, we are actually only in FY24, but they are allowed to consider divs once the 2 stated finance and debt issues were addressed which both have been.
We are in FY25 now
How can they announce a dividend if they have already said they won’t consider them till FY25 as they aren’t allowed for FY24?
Agreed Smiler.
Expectations have already been set in the Jan trading announcement that the results will be near top end of projections, so I believe the only remaining thing needing to fall into place that would cause a re-rate of the SP will be recommencement of the dividend.
I can't believe they will not announce recommencement of the div given the business progress over the past 12 months, and given their previous dividend profile an ex-div date could be in May, with payment as early as June.
My hope/expectation is that an initial div of at least 3-4p might be announced although that is purely my speculation.
Good luck all LTH
On the eve of tomorrow's preliminary results you have to say that expectations appear to be somewhat mooted.
So will be get an SP boost on publication tomorrow or will we get a drop? Place your bets.
I have been invested here for 4 years now and I suspect patience is starting to run out with some/many shareholders. The language and tone of the RNS will be of particular importance tomorrow.
Just took advantage of the crazy price drop today to buy some more at 98.5p.
It shows how strange (fixed?) the markets are when the share can jump close to 10% one day on 7 times normal volume, then tick back down to the current SP then yo-yo between 98p and 102p and back on far lower volumes.
CARD is clearly an unloved share in the FTSE where most focus is on banking, Tech and Industrials sectors.
We are probably suffering because CARD is classed as a retail share by brokers and analysts who, as we know, treat Retail sector shares as 2nd class citizens.
Roll on the results and an announcement on dividend recommencement which should help provide an underpin to the SP that will hopefully counter some of these shenanigans.
4% down when markets are flying, on a profitable cash generative stock says it all about the utter idiots in the City
Let's hope they do a 'spell check' on the RNS before release. It can be the best results ever, but they'll probably find something for it not to be!
The trades amounts are too low and numerous for it to be a leak… think people just think the drop to 90p as we’ve seen so many times is on its way.
Re the dividend post my concern is that we won’t see anything till end of FY25
I sold all of my MOON and put it all into CARD after buying birthday cards at CARD online.
CARD online has really improved Quality and the personalisation is equally as good as MOON and the prices are at least 50% less !
CARD told us in the January Trading Update that Results will be at the high side of market expectations. £62M
The restriction on Dividends was probably lifted in January and I expect a return to a small Dividend later in the year.
Tuesday 30th April should be a Good day !
If you want to be cynical then the 4m volume last Friday & resultant 10% jump looks a lot more meaningful than a subsequent 5% pullback
Or there's a leak and they're not much cop.
Classic behaviour to shake out weak hands ahead of Tuesday's results IMO.
Worth flagging the Capital Market's Day slides from last May; https://www.cardfactoryinvestors.com/media/sl0nstlz/cardfactory_capitalmarketsday_final-slides.pdf
Slide 94 is the key one
"Restrictions on payment of dividends continue to apply until CLBILs and certain term loans are repaid, these
restrictions are expected to be lifted after January 2024."
"Board intends to maintain a leverage ratio of between 0.5 and 1.5 times1. Provided leverage remains within this
range it is the Boards intention to pay annual dividends based on a targeted dividend cover of between 2 and 3 times
the groups consolidated post-tax profits."
Leverage at the HY results was only 0.6x, so there is clear headroom, particularly when they are trading at the top end of expectations.
Income funds & investors returning to the register should provide a significant boost.
We'll soon find out. That would be a moist dream Monday night, if they ploughed it into CARD instead!
City snobs are obsessed with Tech. If they actually went out into the real world outside of London they might actually notice things like CARD, take it in, look around, observe.
A third if not half the inside of the stores are gifts and other celebration items now with higher margins and growing basket price. I actually thing their 'Brand Name' doesn't do it justice anymore. Suggests just 'cards'
However with a growing online presence as well the future is very bright. I wouldn't even class MOON as a serious competitor, they have an online ceiling IMO.
Over a 1000 stores, with a virtually integrate production and distribution, and growing online presence, it's no wonder the big boys dumped £25m of MOON shares yesterday.
Well I wish it had some positive effect for us… this lack of movement upwards is ridiculous… feels like people have been through the ups and downs from previous announcements and now they just can’t be bothered with the headache
Yes rns out cardy smashing it
Largest holder dumped a third of their shares they know …
£25m share sell off. Thought there must have been a RNS or something, but no?
That’s better, a fair few big guys going through at the end of the day.
Someone had enough of the moon
Card smashing them
As Stach will tell you, those pesky mms!
And the reason for todays retrace is?
It has never followed the main indices up (or it would be substantially higher), or down so it won't be that one.
At this rate is will be 92p tomorrow !