Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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And share price returns to above 100p......
PP expect OP profits of c. £450-465m for '17. PP are less exposed to any drastic reduction in fobs spin stakes indeed the outgoing CEO has been highly critical of these machines and has called for a max £10 spin. A new CEO will have to deal with this in Jan as BC is off to pastures new. Elsewhere the Western Australian Govt has slapped a 15% tax on bet revenue costing PP c. £7m pa.
Trading update 6/11...
Could be...but will take the gloss of the offer price if bidders had factored in the SC not overturning prev rulings. I'd say 140 well out of the window now.
Drop unjustified in my opinion. Didn't win the claim for the compound interest (for the VAT claim which they did win). Suspect this will close above the 100 mark
Good opportunity for a tree shake, pick up some shares cheaply and push back up over 100p. Let's see where it closes ! LOL
Win one lose one....I guess!
SC rules in favour of HMRC on interest / vat re Littlewoods.
SPO didn't get compound interest on VAT repaid. Assume this explains drop. Nice to see traders know before RNS posted....
A bit of selling and the Barrow boys take fright...not worth bothering about if your waiting for an offer. It ain't written in stone we'll get one!
Share price holding steady till 10 minutes ago, then drops 7%. Why?
A recent study found in 2014 that £13bn had been wagered on the one armed bandits by the poorest 25% of the population, racking up over £400m losses. Most of the squandering took place in the country's most deprived boroughs which contain 2691 betting shops. Scince the relaxation of the Gambling Act (2005) an additional 2m people have been identified as at risk of problem gambling. The proliferation of tv ads on sport channels imploring one to bet on the next corner, goal scorer or whose down the pub is symptomatic of the lax attitude to gambling. Most of the current legislation was watered down under G.Brown's chancellorship (he bottled the super casino network) he used the gambling revenue to fund his grandiose state ambitions. Remember this was the man who sold a chunk of our gold reserves at rock bottom prices. Mistakes of the past are not been heeded (so far) and Parliamentarians look set to fail yet again to learn lessons from history. The Govt had a great opportunity to act on the Fobs they passed the parcel back to the bookies for more useless chin wagging and reviews on the last review. No wonder sfa gets done these days.
Discipline, discipline and more discipline is needed if your a gambler at any form of betting. We often hear gamble only what you can afford to lose which is plainly sensible if you like a punt be it the ponies or shares. Else you will be broke and on the borrow and a life of misery. I always figured the odds were stacked against me and feeding these one armed bandits never appealed. I suppose if your stupid enough to lose hundreds of pounds on the spin of a wheel you deserve all you get. Unfortunately it's the fall out from problem gamblers that cause concern in terms of crime and family breakdowns. Tinkering with the problem achieves nothing. Regretably the Govt want their cake which will trump any social concerns. From personal experience I drink in a pub that has lots of gambling activities and some serious punters. Of ten I know of three play the machines exclusively. Guess which ones are permanently broke and on the cadge. When the fun stops....stop. Yea right!
Some considerations up for discussion.. stakes reduced to max £50-30-20-10-02. Spin speed currently 20sec slowed to 30sec a spin. Currently it's possible to lose £18000 (£100 a spin every 20secs) in an hour if your chasing losses. Average losses per punter per machine is £9 according to the bookies. If that is the case, surely they wouldn't mind a big reduction in spin stakes? Govt figs say there are 35.000 high stakes (fobs) in the UK which provide the huge cash flow to betting companies. A £2 spin would mean a max win of £36 that's at roulette hardly what an addicted punter would consider worth bothering with. So be it.
Bookies happy at open...
.....or say should be at least halved! Thanks for that..
Could be a classic fudge coming up....kick it down the road for further discussions / consultation periods. These reviews are meant to happen every three years so by the time this one has had numerous talks and then implementation it will be time for the next review. Talk of options...a choice of £2, £10 £50 per spin won't cure the problem just add to the confusion. With all the opposition parties in favour of a max £2 spin that's another headache the Govt can do without. When in doubt. ..do nowt.
Pressure to change is overwhelming not that ethical funds will be much bothered but other iis might be seriously worried that dividends will be impacted from reduced machine turnover which provide nearly 50% of bookie revs. How much of this is already priced in to falling bookie sp's (Sads & WH having a bad year) im not sure but if its anywhere near £10 a spin or a rduction in the nos of machines per shop.......expect further falls. We might know more details today. One thing I'm fairly certain of is someone who needs the thrill of £100 or £10 a spin bet won't turn to a Handicap race to get his kick and will probably move elsewhere. I guess a plus from a crack down will be a big reduction in Sads fixed cost estate. While driving punters to mob betting makes sense many of the old stagers will abandon betting altogether or seek out a rivals shop. Attempts to 'blood' a new generation of young punters is already being frowned on though imo they are far more interested in video gaming than the 4.00 o'clock at Kelso.
Face a tough week as the Gov prepare to slash the £100 spin to possibly 20p. Those close to the action think its likely to be £20 a spin max on the 'fobs'. £2 a spin would crucify the betting shops profits, turnover and jobs which would reduce the Gov take so imo such a drastic action is a non starter. Its been est that Sads eps would fall by 25% at £10 a spin. Elsewhere Betting companies that to contribute to efforts to tackle problem gambling will be named and shamed. Gamble Aware the charity said it fell £5m short if it's £13m industry contribution target last year. Kate Lampard, chairman said she was shocked and found it inexplicable. It is a huge risk to the industry. There is no legal requirement to donate though the recommendation is 0.1% of total staked in effect 10p in every £100. Data from the Gambling Commission earlier this year showed more than 2m people in the UK were deemed at risk. Spo are a risk free bet should co's dependent on machine monies seek new revenue streams.
Part of the "pass the parcel"of shares is Hemmings reducing from c.28% to under 3% as the old guard sell out of long held stakes. It's always been a mystery to me what Hemmings actually brought to the party once his brokering of the Rodime deal was completed. Whatever Spo is a completely different co now and looks headed to subsumed as a division of a larger outfit which would not want Hemmings as a substantial holder.
As part of the "offer" Spo has been granted a waiver on disclosure of naming any interested parties or prices offered for the company. Can't see any compelling reason for them to do this as the city would be pretty sure to know who is throwing their 'hat' into the ring.
Changes to the register on a daily basis....RG adds. Noone as yet has made an offer. Might be 4 companies interested. Of the majors I'd think WH over Sads, Betfred with the Tote connection, RG and private equity could be others.....outsiders could be some US leisure/gaming interests. If you clamber aboard at c.105 you'd be hoping for an offer of 120+. If no offers reach the consensus price this could retrace very quickly. Holders are best advised to wait and see what transpires. I wouldn't be betting on 140 because the interest/vat case yet to be determined could be a longtime in getting paid. Spo can afford to wait. Can any of the bidders? I don't rule out a knockout bid to care off the others.....
You could look at it this way our current mrkt cap is c. £191m less cash on hand of c. £76 m leaves a £115m valuation for the R&D/Venues divisions. If they produce £3m that's c.1.60pps....check the p/e on that! The vat interest could be worth anywhere between £40-100m ( figs I have seen bandied about) so working on the lowest no that could mean c.20 pps more giving a total c.22 pps for Spo and a more realistic 8x net earnings. For sure lots has to go right so it's possible this is priced about right given the take out earnings multiple of the pools. A bidder would have to be fairly confident of receiving cash from the overpayment of vat interest and Spo of not giving the Co away to a low ball bid a la the one from those Canadians. Richard Griffiths might put his hat into the ring taking Spo private and Betfred will be interested as they are unquoted. Adding Spo's spread of businesses and licences to their bookmaking operations would make them a force if they wanted to list. The iis now own over 90% of Spo so there could be fun and games ahead. Tops would be 120-140 with the vat imo but you never know should a bidding war break out.
We netted £83m post pools sale giving up £12-15m in p/tax profits. Our mrkt cap has barely budged. Ask yourself why anyone would want to pay in excess of £200m for c £3m in profits and £76m of cash? Best way that equates to c.45pps. Granted there are other attractions, we are dominant in race course technology, an expanding venues business and a worldwide spread of interests, all to the good. However is that worth c.55pps a share? A larger outfit might use Spo as a cash cow but some of the larger UK outfits carry large lumps of debt so hardly a consideration. A US bidder would be preferable imo so we shall have to wait and see.
Be interesting to see who makes the first move for a Co currently valued at c £188m with forecast profits of £3m! That's a crazy 60+x earnings even being debt free and a healthy bank balance it's too sweet for me but family holding pending further moves. Market was pretty underwhelmed. I doubt there's much left in the price, perhaps 110 could be a take out blow. Be ready to sell quick if no interest is shown....