Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Makes sense Tomglan, did you factor in debt?
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SL to pay 300m dividend
I agree coaster.
If they were thinking of not paying the dividend, it would be communicated as soon as possible.
The business has net cash and it does not lend to the business sector, unlike banks. There is no prudential reason why they will be blocked from paying the dividend nor any cash conservation need.
The price is coming off with the market, no more. Fund managers are a geared play on the market due to the fees on AUM.
Am heartened they are buying shares back at these prices. Am fed up with companies that do buybacks at the highs and when the price slumps, do nothing.
It would be difficult for the Board to justify/ recommend cancelling the forthcoming dividend when they continue the share repurchase scheme.
The setting of the dividend is for the board to decide/recommend and the shareholders to agree (AGM) ... the FCA (and anybody else) can say what they like -- they can only exert pressure, not dictate.
However, if the government were to introduce a change to the Companies Act that would be different.
There's no financial reason for SLA to pull its dividend.
@Sharehunter3 - i think the dividend is fairly safe here. But then, it depends on what the FCA says.
This is a point that that Keith has stated quite often - the existing business is valued at basically nothing. Seen reports which state that the sum of the parts is around 150% of current market capitalisation (and this is public knowledge). When you think about the businesses SLA owns - they own Parmenion, 1825, etc, there's incredible value here.
still hoping to receive dividend as there is now no rns showing saying different
I'm yet to invest here but want to run through some numbers based on the current share price (as of 2nd April 2020) of the public holdings that SLA own. We have 19.97% of Phoenix which is worth £830m, 26.91% of HDFC AM which is worth £1,300m, 14.73% of HDFC Life which is worth £1,360m as well as 50% of an unlisted Chinese pensions company that contributed £17m to profit in 2019. If we simply add up the totals (based on the current share prices i.e. after the COVID haircut) we arrive at £3,480m. If we subtract the £3,480 from the current market cap of SLA we arrive at a figure of less than £1bn for the existing SLA business, having stripped out the public holdings. The existing SLA business made about £300m in adjusted operating profit in 2019. So if SLA were to sell all the public holdings at the current price we'd be left with a business earning around £300m a year with a market cap of £1,000m - that's a 30% earnings yield! Now I understand asset managers will be under pressure for the foreseeable but that price takes a lot of that into account already. As there's so much else on sale at the moment it may be that I don't end up investing here, the financial statements look a bit of a mess to be honest. If anyone has any thoughts on the above I'd appreciate the feedback. Cheers, Tom
Note: I understand SLA recently sold a chunk of HDFC Life but the overall point still stands.