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Spiking UP after crossing 116p and going all the way to 121.20p
Intraday chart
http://uk.advfn.com/p.php?pid=staticchart&s=L%5EREDD&width=695&height=400&p=0&t=1&cb=
118.20p +6p
Richard Griffiths managed yesterday to increased his stake to 9.81% from 7.67%, most likely he was happy with the results and more yet with the dividend ....
Name Richard Griffiths and controlled undertakings
5. Date on which the threshold was crossed or 5 September 2019
reacheed of 8. A) (total of 8.B 1 + 8.B 2)
Resulting 4.49% 5.32% 9.81% of 306,706,045
Position of previous notification 3.43% 4.24% 7.67% of 306,706,045
From the "UPS" thread ..........
REED 114.40p +2.10p
Redde alert - By Alex Newman - 5 September 2019 - Investors Chronicle
On the surface, there is much to suggest Redde (REDD) is trading well. Though margins fell in the year to June, the vehicle replacement specialist saw a 9.4 per cent rise in credit hire cases, a decent utilisation rate for its expanding fleet, and increased demand.
Look beneath the bonnet, however, and gremlins that contributed to the sell-off in the group’s shares earlier this year are still there. For one, the working capital strain has worsened, as debtor days climbed to 116, up from an average of 109 in the first half of the year and just 91 in the year to June 2017.
And while current assets rose from 112 to 116 per cent of current liabilities, trade and other receivables continued to climb, from £181m the prior year to £220m at the end of June. Given the group often already discounts claims in return for a supposedly more efficient and faster settlement process, it should be of little surprise that management is now taking a firmer line with insurers who take the discount and then defer payments at their leisure.
“If the group has to sacrifice some debtor days to preserve value, then it will do so,” is Redde’s new position. The decision of one insurer to return to its protocols after life on the outside has, apparently, only added to that conviction.
Consensus forecasts are for earnings of 13.5p per share for the 12 months to June 2020.
REDDE (REDD)
ORD PRICE: 112p MARKET VALUE: £ 342m
TOUCH: 111.2-112p 12-MONTH HIGH: 200p LOW: 82.3p
DIVIDEND YIELD: 10.4% PE RATIO: 10
NET ASSET VALUE: 52.5p* NET DEBT: 22%
Year to 30 Jun Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2015 249 24.3 9.0 8.3
2016 379 31.3 8.7 9.7
2017 472 31.8 8.9 10.6
2018 527 38.8 11.4 11.65
2019 590 41.7 11.3 11.65
% change +12 +7 -1 -
Ex-div: 03 Oct
Payment: 07 Nov
*Includes intangible assets of £99.2m, or 32.3p a share.
IC View
The return of a large insurer newly convinced of the cost-effectiveness of Redde’s claims protocols is an important development. These high-yielding shares look cheap, and tempted investors should now watch for signs that the strain on cash flows is abating. Hold.
Already "AT" 114.40p
Broken from the downtrend chart
https://uk.advfn.com/p.php?pid=chartscreenshot&u=4%2Bai8%2FyIRFpGHvQGJR9XnAS3rg%2FuuAbeF8614ufc9PU%3D
Results much as expected, but they have held the dividend 11.65p and that was over 10% yield, but now just under after share price rise
" Improved revenue and profits in a challenging year
Operational headlines
-- 9.4% growth in credit hire cases
-- Total number of hire days increased by 10.7%
-- 5.2% increase in number of repair cases
-- Year end fleet up 10% to 10,711 (2018: 9,741) - reflecting increased demand
-- Revenue generating fleet utilisation maintained above 80.0% at 81.5% "
Bruce on June 10th 42Trader was incorrectly referencing a previous RNS in May which showed the Woodford holding increasing by 1%.
Woodford dumped 8% yesterday , part of this was taken up by Griffiths.
First RNS yesterday looked like a take-up of nearly 120 million shares... (not a reduction).. the confirmation of a whopping chunk let go from Woodford was the later RNS.
There is an RNS yesterday confirming the reduction. There is another RNS also yesterday giving the reduction from another holder.
Woodford topped up in mid-May to 28%. Can't see any reduction in holdings you refer to.
Sentiment is weighing on Woodford held shares. Redde is held in his income focus fund, representing 4% of that fund. The fund has been frozen from redemptions and holds a high proportion of liquid listed companies (e.g. housebuilders, tobacco).
Correct about Woodford, but not sure its good to top up. Woodford has sold just 1% with another 27% left. Got to wonder if more will be sold and whether that will be the catalyst for others to sell.
I guess this is likely being pulled down due to Woodford dumping his shares; a good time to top up for income
This is not looking good. From 180 to 100.
just been paid 14 days max on a non fault claim at 25 a day,insurance firms clamping down on hire car costs , not good for redd
https://www.investegate.co.uk/redde-plc--redd-/prn/holding-s--in-company/20190507150647P6D07/
Always check elsewhere for released rns.
Another one missed by this site. They showed the Woodford increase holding though!
Canaccord reducing heir holdings.
https://www.investegate.co.uk/redde-plc/prn/holding-s--in-company/20190409130905PA68F/
Almost getting there, 130p soon!
I was more worried about the drop in cash and increase in working capital.
No doubt the SP wont reach 180p any time soon. Profits will be 8.7% lower. Does this warrant a 50% fall in the SP? I personally think not.
A recovery to even 20% below before the announcement would be over 130p. A nice 40% gain for those who chose to buy on the dip.
There is no impact on 2019 working capital versus expectations as nothing has changed. 2020 working capital will now be better than 2020 expectations, which I have assumed will positively impact net debt.
Bad grammar - sorry
"Now, profit warnings can be a good way of getting a share cheap and possible those that bought around 80p-90p have, but from my opinion the share will not be reaching previous heights for many years if at all now. Proof is going to be needed in the form of results for this to properly recover and we already know that forward forecasts for 2020 are going to be at least 18% down."
Everyone seems very positive here and the recent bod purchases are good but I fail to see this doing well for a long time now.
The loss of revenues from that one contract has been said to be 18% of revenues, but that is actually based on 2020 predicted revenues. Based on current revenues it is more like 21% and so the bod have glossed it over a little. What if some of those potential future contracts do not turn up?
Secondly the statement, "The effect on working capital in the financial year ending 30
June 2020 is anticipated to be positive." Is this then meaning that year ending 2019 working capital will not be positive? If so, what will be the effect of this?
Now, profit warnings can be a good way of getting a share cheap and possible those that around 80p-90p have but from my opinion the share will not be reaching previous heights for many years if at all now. Prove is going to be needed in the form of results for this to properly recover and we already know that forward forecasts for 2020 are going to be at least 18% down.
Made my last top up at 109p this morning. I think this will gradually get back to 130p.
SBB1, You are not alone.
i have just bought a small amount here at 113.8 . I am hoping this is a decent buy in price.and will get more if i see it making progress.
Any prediction on what you think this may recover to?
Paid. Cant believe I've got this whole board to myself. Well under the radar!!!!!
111p Anyone with much higher average should maybe think to average down....
Moving back to sensible level of 125 - 130