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Dividend rebased (cut) from 2025 to 4.5c
FY24 total ordinary dividend expected to be maintained at 9.0c per share and ordinary dividend to be rebased to 4.5c per share from FY25 onwards;
Should be a fun one today - happy to see the nettle grasped and perhaps a realistic reset for a brighter future.
The Board has approved the capital return through share buybacks of up to €2.0 billion of proceeds from the sale of Vodafone Spain. This is expected to commence following completion of the sale of Vodafone Spain. The Board anticipates the opportunity for further share buybacks of up to €2.0 billion upon completion of the sale of Vodafone Italy. It is expected that the total return to shareholders for FY25 will be up to €3.1 billion, representing €1.1 billion in ordinary dividend payments and up to €2.0 billion in share buybacks. This represents a 23% increase over the expected total returns to shareholders for FY24 of €2.5 billion
50% divi cut, but share buy backs, always a hot topic buybacks not sure what to think.
Would like to see the shares recover to 100p, at which point, I sell up
Not surprised at dividend cut hopefully sp will climb in the coming months at which point I will exit at the first opportunity...
Just read that as well….
“ FY24 total ordinary dividend expected to be maintained at 9.0c per share and ordinary dividend to be rebased to 4.5c per share from FY25 onwards;”
Better income plays out there now imo. Esp insurers like Phnx that are increasing dive and cheap atm.
Usual caveats
Trek
For once, here's hoping the markets look favourably on this. Await the opening with bated breath!
Up 5% on Tradegate
This could go up 10% or down 10% have held long enough to give up hoping...Think i might head to the fallout shelter for the day....
Certainly radical stuff. Margherita's grabbing the bull by the horns. Buybacks are good at current levels and should significantly reduce share volume and therefore shareprice. Let's hope the market takes a positive view. God knows we need it!
A 5% dive when the share price is quid is the same as a 10% divi at 50p
I thought they said the Capital Allocation review would take place in May? It makes sense what they're doing.
Bad move strategically to announce both news at the same time..
'Capital Allocation review would take place in May'
The detail in the rns says 'option'
The story still reads like growing off a lower base.
It's a flippin pension scheme that just realised it was being commercial all these years.
Who knew?
*wasn't
Oh well no more emotion
A special dividend would have been nice….hope share buyback is beneficial…it has n
been singularly unhelpful with ABDN..except for Stephen Bird’s bonus
Share buyback is a mid term benefit, if earnings growth materialises.... but they need to do it,rather than just hand the cash back to shareholders, as the cash flow now will be lower once Spain and Italy gone , and the BB will assist EPS by H2 FY25
Italy sale is cash flow dilutive
Flec
''I thought they said the Capital Allocation review would take place in May? ''
Yes - they were so excited, that they have slipped it out early - saves specialisation for a couple of months - the split in allocation is what I was anticipating. I am guessing that buybacks would continue beyond the 4 Billion already announced if that was still the best option at the time, re pricing
?
speculation
Selling non performing assets is a plus.
simplifying the business, with concentration on profit making areas is a plus.
Merger with 'three' is a plus.
Buybacks are a plus.
Halving the dividend is a plus.
Debt levels are very manageable at relatively low rates, and the option to reduce the debt levels as they have been doing already is there to do if a benefit.
"Debt levels are very manageable at relatively low rates, and the option to reduce the debt levels as they have been doing already is there to do if a benefit."
They've got a fair amount of Bond debt maturing, or Hybrid Bonds with Next Call dates, due over the next couple of years.
https://docs.google.com/spreadsheets/d/e/2PACX-1vRA1ndHTf_Bz7O_moDxmcbWnEtcusZucUu6lEJvm3O4mGooeH4ErFjRqot3RQHBaVXCgoUED1k2CUVK/pubchart?oid=17624073&format=interactive
https://docs.google.com/spreadsheets/d/e/2PACX-1vRA1ndHTf_Bz7O_moDxmcbWnEtcusZucUu6lEJvm3O4mGooeH4ErFjRqot3RQHBaVXCgoUED1k2CUVK/pubchart?oid=1681133451&format=interactive
If they pay down the debt as it matures, without refinancing, they could reduce their Bond debt significantly over the next two years.
Interesting addendum on Italy sale with the annual maintenance charge of €350m for 5 years (minimum). Not sure why this has not been included in the original announcement - I can see this run and run as mergers at this level are incredibly long winded.
''Not sure why this has not been included in the original announcement''
It has been reported - I knew about it early this morning.
350 million to Vodafone for first year but may reduce after.