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It would be good to get a timetable for the Annual Report, the AGM and the dividend.
RNS is clear. HL often get it wrong.
This was an award of shares to the director according to hl.
And no let up in the company's own purchases: a further 200k and 100k shares in the last week alone.
A final div of .5p would give a yield of 7% which is very acceptable
Good to see a chunky purchase even at these relatively high levels. When coupled with the company’s own purchases at these levels, it adds up to a very big vote of confidence in the company. Patience will be rewarded, eventually.
"With its shares trading at just 14.25p, the group, with three profitable and cash generative subsidiaries, is capitalised at only £12m, yet it will end the year with some £7.5m cash and making £1.1m [should be £1.27m, btw] pre-tax profits on some £11.7m of group sales.
That is totally the wrong price and eventually the market will realise the value of its shares.
Still time to get aboard while others are dithering.
I consider that there is easily 25% in the shares in the very short-term."
I agree (or maybe that should be, he agrees with me!).
Impressive presentation by Joe Grimmond last night.
EPS for 20/21 was shown as 0.83p (I'd guesstimated conservatively 0.75p) and for 21/22 it's forecast to be 1.27p. Applying a PER of 20 gives SP of 25p.
In addition, after the sale of Haydock, the cash balance will be over £7m, or 8p per share, and no debt.
There is no logical reason why this won't soon re-rate to 20p+ . Even 30p could then be on the horizon...
Indeed excellent update. Profitable and cash is strong. 25p+ should be achieved on result.
Excellent result as expected. Earnings from continuing operations - which I would guesstimate at around 0.75p per share - alone are sufficient to buttress the current SP, assuming PER of 20 (MACF is around 18). But when you add in the cash on the balance sheet of around 5p per share, this suggests a rerating to nearer 20p.
So it was a buy back, a relatively big one this time. A trading statement covering the year ended 30/4/21 is due possibly in the next few weeks – the company must be confident this will be well received.
...done at the mid-price, so could have been sell or buy. As usual, the other side of the deal is not shown, maybe it'll show up tomorrow.
Just over 1%, so there won't necessarily be an RNS, unless it's another buyback, for example, this time from a major shareholder. We'll see.
Shares have gone ex dividend today.
0.5p drop today to be expected therefore.
Dividend’s back, well done Joe.
Smart move, instigated perhaps by their new broker. Investing in its own undervalued shares is a lot better than having the cash sitting idle. Small beer in absolute terms, but significant relative to average trading volume. This purchase, and the prospect of further purchases, should at last inject some life into the SP.
Bottom line is that we're both confused!
The CBIL is a coronavirus loan of £1 million from Barclays. This is disclosed in the last annual accounts. I assume this is the term loan shown in the proforma.I don't know why there is also a CBIL asset in the proforma, unless these are funds on lent to the sold businesses and to be repaid by them
Tyma - the proforma balance sheet does show an asset of £444k for a CBIL, but a CBIL is a liability, so there must be an element of the CBIL elsewhere in the balance sheet - though it's not clear to me where - the net of the two being the CBIL liability of £933k presumably (because a recent RNS said they'd repaid £500k, with £433k remaining outstanding).
Lombard haven't sold any shares. Their % holding dropped below 5% purely as a result of the increase in the number of CRU's issued shares from 83m to 86m, following the acquisition of CPL for a mix of cash and shares.
There seems to be about 6p per share they could distribute unless they have more ideas on spending the cash. They could then do a share consolidation.Hard to be sure since the proforma balance sheet shows an asset of £444000 for a CBIL loan advance yet they seem to be planning to repay the whole loan.
Yes, they may well declare a dividend, and it would make sense at the same time to clarify the group's current strategy. They'll certainly be anxious to get the cash pile working in some way or another.
At some stage we will hear about a distribution which might act as a catalyst for a rerating.
Shareholders funds at completion of disposals per pro-forma balance sheet at 31/10/20 were £13.6m.
Freehold property was in at £2.5m, but is to be revalued upwards, to say £3m.
Earnings of the sold companies in the 4 months from 31/10/20 to completion, based on annual revenue of £18m, would be at least £0.3m. The retained companies will similarly have earned maybe £0.2m.
There is still £1.5m of goodwill, but I’m assuming that properly reflects the additional value of all the other assets were they to be sold as part of a going concern (as was the case for the sold companies, where the associated goodwill was in effect sold at a profit).
The upshot is an estimated asset backing of £14.6m, or with 86m shares now in issue, c17pps.
With the SP stuck at 11.5p, it looks like the only way is up, but only when the market is good and ready…which might not be till the next RNS (prelims in July?), unless in the meantime the new NOMAD puts out a bullish broker note.
Shares probably issued to conserve precious cash & motivate the vendors,assuming they are remaining for a while , to have a vested interest in the continued success of their business & as we see from todays RNS, large amounts of cash can be applied wisely very quickly.I am sure it wasnt difficult to present the case to the vendor that CRU will be a debt free, profitable company paying a better dividend than any bank & with prospects of , realistically, modest capital growth.
Ah, yes - I should have read the RNS properly! So the shares - or a maximum of 3.3M of the 4.9m total in the RNS - weren't bought on the market, they were consideration shares issued as part of the acquisition. Maybe they bought at least 1.6m in the market therefore? If so, not much effect on the SP!
I wonder why CRU issued shares, rather than paying from its now plentiful cash resources? To finesse the vendors' tax position, I suppose. But it also means the vendors' are well-incentivised, through both the earn-out and their ownership of CRU shares.