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given the announced departure of the company's longstanding (12 years) CEO.
I was expecting TPT to rise as the possibility of a no-deal Brexit became more remote, the Pru's selling may explain why TPT didn't participate in the bounce about a week ago.
Best wishes to you, too, Majorboy.
250k share buy at 75.00p.
holding down to zero from 5.06% and the share price is slightly up.
Today's best trade: 615,950 at 69.20p (at 15:17).
Majorboy,
I sincerely hope you don't get your buy-in price, because I'm hoping it has a long way to go, up!
But GL all the same.
And another 737,958.
Looks as if the prospect of a deal with the EU is stimulating buying interest in TPT.
another 1,333,187 at 70.00p in 3 trades.
.
Adjusted revenues(1) for the 52 week period are expected to be in the region of GBP214 million (2018: GBP214.8 million). Like-for-like revenues in the 52 weeks were ahead by 0.6% when compared to the prior year (2018: LFL flat).
Trading over the fourth quarter reflected a more challenging economic backdrop, with uncertainty impacting on consumer sentiment and like-for-like sales decreased by 1.9%.
----
Q4 sales performance not unexpected, given the state of the economy at the present time.
Should the UK ever achieve a satisfactory solution to Brexit (ie, any solution except no-deal), then TPT's share price should enjoy a very healthy recovery.
£ closed yesterday at $1.25018, so the currency market has begun to anticipate a deal with the EU (or, at least, the absence of a no-deal).
UK domestically-orientated stocks (FTSE 250, etc) have a long way to rise should the currency market prove to be right.
I see that Bathstore has been saved by Homebase which has been saved by US private equity outfit Hilco. Many of Bathstores outlets will close however. I doubt if this will benefit TPT however.
At the moment I've no stake in TPT but it is on the radar.
Rumour has it that some more unprofitable stores closures are on the cards. Any confirmation?
PS: in a less depressed market for domestically-orientated stocks, think TPT would merit a multiple of about 15x, to put the share price on about 100p.
Sympathetic Tempus column article in the Times, p44.
Conclusion: "Hold. A resilient retailer whose move into commercial sector is compelling but backdrop to trading is highly uncertain".
"... at 65p yesterday ... trade for an inexpensive 10 times Liberum's forecast earnings for a yield of 4.8 per cent".
"Topps Tiles's strategy is so obviously the right one and is being carefully and well executed, but there feels little in the way of a catalyst to give the shares firm momentum, so no reason to change the recommendation".
the Prudential declares an interest of 5.06% (threshold crossed on 12/07)
Big seller this morning. Woodford out? Could see buyers piling in here if so. Great results on last update.
Woodford below 5%, as of 05/07, last Friday.
+3.8% in like-for-like sales, that's the best in quite some time.
"While this is in part due to a softer trading period in the prior year we are encouraged that the successful execution of our strategy is delivering good trading results."
Neil Woodford?
Topps to trial supplying Bathstore with all of its tiles after BCT went bust, who used to be Bathstores supplier. This could be a massive money spinner for the company with there being 150+ Bathstores across the country.
Topps Tiles (TPT) has doubled its addressable market size by entering the UK commercial tile space and Liberum says it is on the right path to emulating its success in domestic tiling.
Analyst Adam Tomlinson retained his ‘buy’ recommendation and target price of 95p on the shares, which fell a penny to 72p yesterday.
(from Citywire)
He said the move into commercial tiles doubles the addressable market size to over £700 million and ‘the highly fragmented sector offers an attractive opportunity to take share and supports management’s ambition to become the number one player within five years’.
‘The group is augmenting its two acquisitions - Parkside and Strata - by leveraging its existing scale and supplier relationships, while investing to grow the experienced sales teams,’ said Tomlinson.
He added that a tour of the new showroom showed it was ‘already demonstrating the same expertise, strong customer service and high quality, innovative products, which have driven Topps’ success’.
-- Like for like sales over the seven weeks to 18 May 2019
increased by 1.2% (2018: decreased by 0.2%).
CEO's comment:
"The Group has made an encouraging start to the second half, with trading in the period to date continuing the positive trend seen in Q2. While we are retaining a prudent view of market conditions for the remainder of the year, we remain confident in our ability to continue to extend our market leading position."
https://masterinvestor.co.uk/equities/topps-tiles-a-market-leader-aiming-high/
Report on Strata Tiles from the H & L website :
TOPPS TILES BUYS 80% STAKE IN COMMERCIAL TILE SUPPLIER STRATA
(Sharecast News) - Tile specialist Topps Tiles has bought an 80% stake in Strata, which supplies tiles to the commercial market, in a deal worth £5.3m that is expected to be earnings-accretive in the current year and beyond.
The acquisition also involves the grant of put and call options relating to the purchase by the group of the remaining 20% of the issued shares in Strata, which are exercisable in 2021.
Established in 2002 by the vendors, Jonathan Wiles and Paul Wallis, who will remain with the business, Strata will be integrated into Topps' commercial business unit, established following the acquisition of Parkside Tiles in August 2017. The Strata brand will be retained.
Topps said the deal will add scale to its fast-growing commercial business as it seeks to build a leading position in the commercial tile market. In the financial year ended March 2018, Strata reported turnover of £4.8m and pre-tax profit £0.7m.
The consideration will be paid in cash, with £3.3m (plus a £0.4m closing adjustment) being paid on completion of the initial acquisition of the 80% stake. Up to a further £2m will be paid on completion of the acquisition of the remaining 20% stake, subject to performance targets over a two-year period.
Following the payment of the initial cash consideration, the net debt position of the group will be approximately £22m.
Chief executive officer Matthew Williams said: "Our commercial business is already expanding at pace, with sales in the first half growing by around three times year on year. The acquisition of Strata will accelerate this expansion and demonstrates our commitment to building a commercial business of quality and scale.
"Strata is a well-regarded and well-run business with a strong brand; and we look forward to welcoming the Strata team into the Topps Group."
Broker Liberum said this was a very positive step forward in Topps' ambition to grow its share of the UK commercial tile market, which doubles its addressable market to around £700m.
"The acquisition makes sound strategic and financial sense, and looks to have been struck at good value for Topps (an implied EV/EBITDA of 6.5x). At this stage we leave our forecasts unchanged but will revise in due course, noting management's comment that it expects earnings accretion in the current year, although we expect a more material impact thereafter."