Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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I am very glad that the company have announced an intended substantial dividend dividend payout if approved. The announcement will help to remove the shackles from the shares as investors will realise the company is no longer in a moribund state and I am quite prepared to now say that the company vision can only be bright. Yes! it has been a long time coming.
Cash in bank will be the highlight and what they propose to do with the money. How much of the pools nos will appear I'm not sure but c 5-6 months at a guess. Whatever this is a new beginning for Spo a chance to build a new business with huge opportunities longterm. We just need to see the board having a vision whether by organic growth or via acquistion(s). We cannot stand still.
Interims announced shortly prob end Aug...
Spo wins contract to supply all betting technologies to Denmark... Shares certain to go lower...oh yea they did. Good news always sends your share value lower as does bad news.... fact of the corrupt Lse. I guess ignore the....day to day...the month to month...year to year...jeez why does one bother?
The Littlewoods case v HMRC has concluded (6/7) and a decision will be given after the summer recess. Possibly kicked down the road to the ECJ for an EU ruling as to how vat interest is paid. Littlewoods has already re'cd a chunk of cash but contend it's way short of the £1.2bn comp interest due. This has all the hallmarks of fudge....should the ECJ get involved we could be years away from any restitution so don't hold your breath.
True! So let's hope our American venture will be different and we have a number of possible aquisitions lined up. I think it's a long shot that we will be taken over that time was when we had the cash flows of the Pools business and they came to nought. Zero debt, a healthy bank balance and an excellent spread of businesses worldwide could prove attractive to a nos of US companies looking to expand into the Racing & Venues sectors. India, if they could ever overcome the illegal betting which is rife could be a real money spinner. Yet legal operators are hamstrung by Indian bureaucracy and the court system of obtaining licenses. Partnering Playwin has achieved little to date and news is very thin on the ground re our progress there. Now if we could get our tote system into the HK Jockey Club........
Agree with you but to date Sportech has a very poor record of producing money spinners from companies acquired as the only time the market got excited was when they were Rodime and announced they were changing the format. If I remember correctly the shares jumped to 42 pence and it so proved that then was the ideal time to sell. Just maybe we are about to receive a second chance and I for one will be crossing my fingers.
Of course your quite right Able companies with excess cash often return cash to holders via divs or share repurchases when available rates of return are unattractive. Improving eps is just one byproduct of share buybacks. Apple have a policy of buybacks and increasing div policy which has worked well for them. The ratio of dividends to buybacks is a whole new chapter but at the end of the day while we have a decent lump of cash I'd be disappointed if the board could not find an attractive home for the cash. Failing that we have options.
Firstly there has been many a company that have returned cash to their shareholders due to market conditions and still remained viable and profitable, secondly the pools have always been in decline and still is by taking a current cost accounting approach and is the reason undoubtedly for the disposal, as a forward thinking company must experience increased growth to be successful. To suggest the company is a basket case is ridiculous as most companies in the gambling sector are out of favour right now and any poor decision by the BOD can be rectified by the calling of an EGM. To expand upon my comment of a cash return, the BOD are in a unique position of being able to invest invest in a company that has been poorly run but with potential or to continue with their current investment programme. Personally I see dark clouds forming in the business environment and I believe this to be a wonderful opportunity to hand back some cash to long suffering shareholders. Hence my bold prediction as things should end up heads you win and tails you win which ever side wins, it should mean either we get cash back or to sell our shares for a acceptable return and not a bit like that senseless so called special dividend or, am I dreaming?
When a Co cannot think of what to do with a cash pile of c £80m+ other than to return to shareholders then your in trouble. Able I think that's a long, very long shot indeed that monies will he returned to holders. I take it you mean a substantial payment and not a lousy 1p dividend! They may as well shut up shop. That won't happen. I take it we will have c 6 months of Pools / spb monies in this half's numbers when we need to know the bods intentions, hell they have had long enough to decide where the vat cash is going and we need to fill the cash flow/ revenue & profit hole of the Pools offload, anytime like yesterday!
The main feature of Sportech now is what will they do with the cash? Will they invest in a future growth business or will they return cash to shareholders. As they have never paid a dividend since the days of Rodime and they have constantly reminded shareholders that when conditions permit they look forward to dividend payment. Due to the economic environment my money says they will return cash to shareholders and so I look forward to the financial results in August.
Late August normally H/Y results reported when we may get some clarification on the L/Woods case and the status of our appeal. Incidentally any proceeds will be taxed at 45%! You win but you lose plenty!
Looks like Hemmings has been off loading more stock as the co's roots to Liverpool have been severed he sees little point in holding shares in Spo mrk ii. Decision on the comp int claim by Looks might get a result in Nov but where in the queue Spo are I don't know.
Been back in a few days, well prior to completion of Pools sale. Felt I needed an interest now that we are cash rich if asset poor....ish. Hope plans are well advanced to increase shareholder value and of course the compound interest case re L/Woods which will impact here sometime in the future. Might get v.v. Lucky twice! That would be a first!
Not only driving price down, but also relating disclosure of buys! Good old MM tricks. Got to be a buy at this price IMO
"Fed up" selling taking the price down. I'm now out selling last of my holding...needed elsewhere. GLA.
Spo was a much better bet with the pools division as a take over target. Without the pools div Spo has lots to prove even with such a healthy bank balance. We have lost a 40%+ GP earner with great cash flow for a step into the beyond and uncertain about how we are going to spend our winnings. So what makes us so attractive without our main bread winner and what price could we command? If you pencil in c £12-13m ebita that would equate to c 6-7pps or 15x earnings. Add our cash reserves and that might be us fully valued atm as we don't know where we are going to find the c £45m+ revs provided by the pools. While we wait for the sale to complete are we near to making a significant acquisition?
Shares Mag speculate that SPO could be a take over target...good grief! Cant access full article as I won't subscribe to on line publications. The day they stopped printing the physical copy was it for me. How long before the IC follow suit and lose another reader?
I note a bit of 'window dressing' has taken place at Spo board level. Good appointment of the ex GVC GFD...maybe he can impart some of the GVC gold dust here but as a NED and chair of the audit committee? I would have liked to see some US appointments for after all that's where 99% of our business will come from. Obtaining licenses in the UK can take ages but feel sure we will soon have the all clear. Wonder if Penrose is enjoying his £630k 'Brucie bonus'?
Recent Spo announcement: sale of Pools conditional on acquirer obtaining relevant licenses.....a given surely? Let's hope the process is a lot quicker than the tortuous vat discussions.
Barclays says Sads could take a £450m hit to revenues if the Govt limit FOBTS to £2 a spin. PP would suffer a £55m sales hit. The Associated of British Bookmakers has claimed 2500 shops could close nationally by 2020 if extreme measures were implemented. No doubt the bookies are seeking to eke out every last penny from those few lost souls who trudge down to feed the machines but the writing has been on the wall for a long time now, it's on line or die, take your choice.
Having sold our main asset and a lot of uncertainty ahead I'm not sure what the City would be anticipating. We are debt free and cash rich so that has its attractions for a predator, but ex the Pools? I doubt it. I'm not factoring in the compound interest situation as this is unsettled and contingent on the courts ruling in Littlewoods favour. So best left out of one's reckoning. I think we are overdue news on the Pools sale which is probably holding up our US strategy. Whatever we cannot hang about with x millions in the bank not earning their keep! That money has to be used to improve shareholder returns which has been dire these last 20 years. The old guard have had their run its time to move aside and let a new management team take the Co forward. Hendersons / Hemmings were abject in this respect preferring the status quo. With Hemmings reducing and a new large investor on board I hope they will agitate for change but mostly they (iis) are a conservative bunch not much taken to the 'risk' side of business. Of course Odier might herald a new broom at the top we shall have to see but carrying on as per usual....that will not do!
Lombard Odier Asset Managers picked up 25.41% balancing Hendersons sells.
Hendersons cash in most of their chips selling down to below 5% from 27%. Shares unmoved on the announcement.
Holders might be pleased they were scaled back as one can now sell at above tender price. Looks like the mrkt likes Spo holding chunks of cash.....that surprises me. We shall have to see how investors react when that cash pile disappears up a gum tree!