The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Buy back should hit 2% of shares by end of today.
Pace really accelerating so 176k of shares Friday - highest ive seen.
At that rate its potentially another 2% by Jan 24 trading update (total 4%)
Assuming £1.40 average (it will be lower) thats £14m of £25m gone. WIX will need to top up the buy back fund.
You will maybe have gathered I’m relatively cautious on here. Not too much in the way of outward expressions of greater things.
So your enthusiasm is decent balance, as these boards go.
The buy-backs were under way so I assume expenditure on that was taken into account at that time.
I’m open to all eventualities, and we seem in a stable position, from the tone of what is being said. A good position. If they have excess cash, they have undertaken to return it.
On the buy-backs, it is slow, but they were keen to point out is is solely to increase eps. Cheaper they pay, better for us.
Thanks. for ideas and conversation.
Looks good Culpepper. I wonder about your post re slightly higher than £99m. Key is what they assumed for buy backs in that calculation ? and whilst increasing they are slow. For me they are probably generating more cash over and above the capital return threshold than they can spend on buy backs. This raises prospect of special dividend the question is how much ?
Volume is low on Wickes, but I’m somewhat pleased that those trading have not seen fit so far to mark it down on a read-across of KGF basic headlines, which can often be the case.
Perhaps rather the opposite at present with greater understanding of Wickes fundamentals, steadily preparing for a slow sometime improvement in UK economy when purse-strings can be loosened.
And in the meantime before capital appreciation, we have significant returns to shareholders.
If it transpires, though Wickes has already said they anticipated some at least of IT spend to be expensed, it will be helpful to the bottom line.
‘The Financial Times said the plans to make the ‘full expensing’ capital allowance regime permanent will form the centre point of Hunt's statement.
The scheme, which was due to expire in 2026, allows a company to immediately deduct all of its spending on IT equipment, plant or machinery from taxable profits. Extending it was a crucial demand of business groups.
Extending it was a crucial demand of business groups and officials claim Hunt’s permanent extension would give the UK one of the world’s most generous capital allowance regimes, the FT said.’
They expected at half year, to end the year with ‘slightly higher’ than the £99.5 m reported last year after cash outflow in second half. If that is so, there may not be the headroom you anticipate for distribution, whilst paying dividend and continuing buyback, alongside other capital spend?
We shall be even better off as things improve.
Incidentally Kingfisher ( B and Q and Screwfix updated today. Pulled down by the French, but “Underlying retail and trade consumer trends resilient in the UK”
Culpepper go back to my 5th Nov post.
They had £26m more at June 23 than June 22.
They had £100m at 31st Dec 22.
Like for like They should land this year end at £126m. Less £5m buy backs so £20m for special or £10m special £10m extension of buy back. Fantastic value at £1.32. I think with buy backs normal 10.9p and special we will be pushing a 20% return next year.
25/3/22 and may have been mentioned since.
“Where the business generates cash in excess of that needed to maintain a strong balance sheet, fund investment for growth and once the ordinary dividend has been met, the Board may conclude that it has surplus cash. Were this to arise, there is currently a preference to return this surplus cash to shareholders via share buybacks or special dividends.”
Picking up pace
1.7% of company brought back for around £5m .
The £25m set aside should last at least a year and circa 9% of the company back.
New capital allocation policy re cash I beleive will also result in a special dividend as they can't buy back shares quickly.
Everything turning good inflation energy prices interest rates and insulated against a down turn. Brought more and my top tip for 2024.
We don’t know his personal circumstances, his wealth being managed. I understand there are tax advantages, and can only guess equiniti on his behalf managed to just squeeze in a top up.
I think there’s £1500 worth of shares or so a year they can deal with in that sort of way without paying tax on that part of the divi.
He shown as holding 300k plus shares.
Why has he only invested a £5 [ his interim dividend) on 4 shares in the DRIP.
Makes little sense
Yes Mick they had a price of £3.20 only 18 months ago. Not sure I trust what they say.
Key defining metric is now cash. See my earlier post. Its nailed on for a special dividend.
At this level return is 10.9p dividend 3p buy backs [£8m a year] minimum 5p special so 18.9p. So 15% per annum which is IMO easily the new base with growth likely.
If this ends the year at this range it is my number one tip for 2024.
Also think at £2 - £2.25 a number of companies will be running the ruler over this and best to strike when SP is very subdued.
Deutsche Bank cuts Wickes price target to 145 (160) pence - 'hold'
Following this thread, another one opened.
https://www.insightdiy.co.uk/news/wickes-opens-new-store-in-torquay/13010.htm
Is as set out in the update
https://www.wickesplc.co.uk/media/vergkjqx/q2-slide-deck-final.pdf
The more I look at this the more I think it's an superb buy.
Effectively recession proof re core sales.
We had a worry about utility prices. £10m extra but that's now dissipated.
No debt - leases irrelevant.
Capital allocation policy is £50m cash at seasonal low of 31st December. They had £99.5m Dec 22.
That's despite paying 10.9p dividend ( cost £27m ).
Buys backs equivalent to a year's dividend £25m but painfully slow £4m spent as of Friday.
This is the bit I most like £190m cash at 30th June 23 ( £26m higher than June 22).
Implication we hit Dec with cash of circa £125m !!
and a policy to only have £50m.
Buy backs are out - too slow and allready funded.
I think there will be a move to a special dividend with surplus capital. My guess is 10p.
Superb looking opportunity to me and will buy more.
That was a great time to buy, Sp recovered, Leeds branch was very quiet other week these high interest must be having a effect though, taken dividends cash...atb
Dividend pay date today. At current price 8.3% pa I think.
Trading update confirms resilience and growth in difficult market. They continue to refit and add new stores to the portfolio…145p not far away base on profit forecast of £48m pre tax…
Good update in a tough market, shares very cheap
Based on trading to the end of October, we remain comfortable with current market consensus for FY2023 adjusted PBT of £45.3-49.0m on a post-IAS38 basis.
https://www.lse.co.uk/rns/WIX/q3-trading-statement-zs7vtkdnl6g5ll9.html
Storms must = customers