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I had always understood that insolvent companies were prohibited from paying dividends. Anyone know differently?
Looks positive here going into 2023 and beyond. 10% dividend supported by better than expected results and profits forecast to be up despite a small fall in revenue.
Smiths News: Better FY22 than expected; 10% dividend yield
Smiths News’ FY22 results were strong, with revenue and profit ahead of market expectations. Continuing adjusted PBT increased by 0.6% to £31.1m as financing costs reduced and net debt fell to £14.2m. Management was successful in mitigating inflation and controlling costs within budget. FY23 has started well, with uplifts in one-shot revenues and ancillary income. However, we have upgraded our forecasts, and an increase in the discount rate has driven a decrease in our DCF valuation from 94p to 89p. Smiths News trades on an FY23e P/E of 3.8x with a 10% yield, which we believe is attractive for a company with such cash-generative characteristics.
added a few more to my ore holding a few weeks back. I sense the company is under a good management strategy. and there appears to be a resurgence in magazine and news sales around the country. Healthy dividend to come so I am now in for the medium to long term.
Just finished watching the Investor Presentation. All looks good to me so I've taken the opportunity to buy a few more. Probably made some simple mistake but I make the Yield north of 10% for a steady as you go business.
Management seem sensible, hopefully they don't get carried away with the cash they're generating and opt for another Tuffnels.
https://www.edisongroup.com/publication/stronger-balance-sheet-leads-to-big-dividend-hike
"The Board confirms its intention to maintain payment of the planned interim dividend of 1.4p per share, as announced as part of the Company's interim financial results on 4 May 2022. Beyond the impact of the McColl's administration, underlying trading continues to be in line with expectations and, given the Company's on-going cash generation and strong net debt reduction, the Board continues to expect to be in a position to recommend a final dividend for FY2022 up to the full distribution permissible under the Company's current banking facilities (£10m per financial year), for payment in February 2023."
248m shares in issue, planning to pay out £10m in dividends for the full year. 4p per share. Interim divi set at 1.4p, record date coming up, expect final divi to be 2.6p. If I'm right that's a whopping 12% return on today's SP for holding for the next 7 months. 4% nailed on for holding until 9th June. Sustainable? No. Short term gamble? Worth the risk. Opportunistic buy now, take the profit if it rises beyond 40p.
I think 50p , plus a Divi are well within reach in 2021, dyor let's see how we go
Very encouraging analysis issued this morning. Gives me the confidence to hold. I have a core amount (held for some years!) and topped up earlier this year. Dividend potential is also promising. If the research note is correct I may see a modest return on my hold and recent buy!
Sixtynine,
I hesitate to say you do not work for Smith News given your all posts about them.
If you do not work for them why are you so worried about their infrastructure maintenance?.
You would also, according to your posts, seem to not trust their business model.
It does not leave much to persuade one to invest in them.
You point investors towards Trust pilot, which, one has to admit is not good.
What's left to make one invest??
I have now convinced myself that you are an employee with an axe to grind.
As for your last paragraph, it smacks of the brown stuff mate.
Hi Mald, good short term share price increase,
this should continue bearing in mind 85-100 million per annum carriage charge.
No I don’t work for Smiths News,so don’t concern yourself with my mental health.
I am happily divorced,have a younger fit blonde girlfriend,live in a very large house,and drive a Porsche.
Heres hoping your mental health is as good as mine!
these are looking good value on a PER of 4ish..... looking for them to move higher if not be bought out as they are cheap , ultimately there model has to change or they have to pick up something other than paper distribution...... any industries need mass morning deliveries???????
Further to the earlier release relating to improved interims then it seems appropriate to say "satisfactory progress"
The Connect experience failed and the restructuring to Smiths echoes of back to basics - maybe there is still a future in paper and magazine reading.
I will continue to hold especially so with the imminent dividend payment nudging me back to "blue"
Sixtynine,
Why not find a more satisfyingly job with an employer you respect??
I worry for your mental health working for someone you obviously hold in contempt.
Every day must be purgatory for you working for this particular employer. Go on, find a more satisfying job.
Just wondering how many shares you hold if any.
Not been in touch for a few weeks , hopefully a responsible person at smiths news can make this an acceptable work place after years of neglect
RNS Number : 3077C (extract)
"Following guidance within the Company's interim financial results published on 5 May 2021, the Board today announces the declaration of an interim dividend for FY2021 of 0.5p per ordinary share, which will be paid on 30 July 2021 to shareholders on the register at the close of business on 2 July 2021. The ex-dividend date will be 1 July 2021.!
Positive!
Sixtynine, thank you for sharing your thoughts on this matter. I would be very interested to learn of any other wants of repair etc that you may be aware of at Smiths Stoke depot. Have any of repair works you mention been remedied? I would expect a full repairing & insuring lease to be in place for each and every depot across the country.
I should say also they were Connect Group when I got in, with ambitions beyond news delivery. Failed miserably & went back to the core business.
I figured on the regular dividend payment compensating for the falling share price a bit longer than it did. Old industry looking after it's investors by not dropping the divi when they should have done, looked like they were going to maintain it at a 10% level for a while. I got in when it dropped, thought I could trade it for a while & profit, got distracted with family issues, took my eye off the ball for a while, still got a bit left in, not much, recovery to mid 50s will see me in profit on the whole venture here.
divihunter u seem to be a savvy invester why are u in smiths,i lost a bundle here.
divihunter u seem to be a savvy invester why are u in smiths,i lost a bundle here.
I see 'ole sixtynine, the disgruntled employee still keeps [de]ramping on regardless of share price improvement.
Can only assume he is not a share holder. [why would he be].
If he does not like the company why not find another job that is more fulfilling for him.?
Bet he's a bundle of fun to work with.
No assets left, just a large delivery charge, and hundreds of thousands of tonnes of waste paper and magazines a week!!!!
Save the planet please, send out the product customers want .
Not a forced supply, creating huuuuuuge waste!
Terminal decline eh? Nobody told the share price! If anybody listened to investor meet this morning then maybe they'll agree with me that this has still got much further to run.
It's more than possible to make a heckavalotta money in so called declining industries.
Think of the fantastic run big tobacco has had since the 1990s/
You just need a monopoly and decent management...
Same. Looking for a 30% rise from here before I exit, wish me luck!
positive financial numbers and figures usually end up reflected in an improving sp the future prospect of a reinstated dividend is also very positive. I will continue to hold for the next set of figures (unless the sp jumps higher and I realise some profits.