Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Couple of 1m buys just after ten and some meaty ones after that.
The bad weather the country has been having will always get people needing diy products,therefore Wix should benefit.
There might be. Obviously depends on how they see best interest, and their visibility on forward cash.
Whatever happens, there’s good opportunity for capital growth alongside returns. I believe.
Culpepper my first buy was £1.55 but brought 4 times as many at £1.29 so into the blue. You know I'm really bullish on this one.
Cash position at 31st Dec will be interesting. I think there could be a case for a special.
Even without it with inflation at 3.9% and falling the yield looks good.
I'm holding
It’s a slow process, but that’s alright. Geared only at increasing eps. More shares cancelled, more earnings for each of those remaining.
As per RNS.
We had conversation about that earlier on this page. I can’t add to that.
They are making enough to invest in the future, tech, new and upgraded stores, as well as making returns to shareholders through normal dividend. And now additional returns.
I see that continuing. And I guess by future buy-back programmes, having satisfied dividend.
Shares will prove to be cheap as economy improves. Buying them back now is efficient and effective.
How long do management allow share buybacks to continue.
Https://www.moreaboutadvertising.com/2023/12/st-lukes-wins-diy-and-kitchens-retailer-wickes/
And they’ll benefit from the divi too, with greater ongoing yield having bought low, and returns to shareholders being slowly helped by buy-back. Assuming we all don’t go to hell in a handcart, no DIY and building work required, dwhich hasn’t so far proved to be the case.
I think the blurb indicates they’re thinking longer term UK equity. Buying in anticipation of reversal whilst prices are depressed.
One has to remember that Wickes is principally a retailer which means that if they are carefully watching their margins, they will be adding to their cash balance day after day. They do have some borrowings but it looks as though they are steadily reducing that as well as doing the buy backs. With good management this business will look a whole lot healthier in another 2 - 3 years IMO, which could be the reason for Chelverton's interest.
Chelverton UK Dividend Trust PLC adding Wickes. Contains their general take on buybacks, takeovers, household spending power and confidence in their portfolio over time.
https://www.investegate.co.uk/announcement/rns/chelverton-uk-dividend-trust--sdv/half-year-report/7907567
My understanding is Chelverton Asset Management already holds 4.5%.
When I started I made a quick £17k. Took it, bought back in later.
It’s very mixed. Frankly, I was too early into it as an investment. I have traded some, averaged down, etc., etc.
But I’m on the losing side with it now.
Have to be content with dividend, which is doing sufficient of a job for me whilst we all wait for an upturn in the UK economy. That’s OK for me.
At the beginning, nobody was posting on this as I recall. So I decided to. In posting, I have picked on just one or two of several to post on. Bit of a useless pastime really, but something I do to keep the marbles rolling.
Culpepper - if you dont mind me asking. What's the story behind your investment ? You've been here for a while. I'm sold on the fundamentals but have called a lot wrong. Let's hope I'm not a jinx
Thank Culpepper - the authority is until 1st Feb so would expect this to be fully completed.
So after £12.5m has been spent, I expect to see a RNS before moving on with the remainder of the current programme.
They call the first tranche for £12.5m of the £25m buyback programme, the ‘initial programme.’
It appears that the intention was to issue a further RNS to announce when they go beyond that.
https://www.investegate.co.uk/announcement/rns/wickes-group--wix/share-buyback-programme/7661768
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.