Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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Actually, just gone through all the options, PR is in fact left with a sizable holding of nearly 300,00 in shares and vested options not yet exercised, (per RNS) plus 187,000 options still to vest (RNS 20.12.22), so just under 500,000 all in. No doubt future options will be awarded too. Therefore, the definitive conclusion is there is no cause for concern.
I too am intrigued what they will do with the share premium account. If it were my decision, about half as a special dividend (35p a share) and perhaps a smallish buyback later on after H1 results if the SP is still sub £20 (with the aim of lifting the SP, rather than boosting eps).
IPC - some did vest in April 2023, and a similar amount vests in April 2024 from the same award. See directors report section. Also, as said, note 24 of the AR lists all the options outstanding. BK has 567,062 to take, once vested there is a wide window in which to claim them. They are not forced to sell them once they're exercised, they could keep them to sell at a later date.
Not sure about the tax treatment. Has someone mentioned CGT? They might in fact be taxed as income at the exercise date? I often see directors selling half the option shares on getting them to cover 50% income tax.
From the Directors' Report -
Of the share options outstanding to executive directors at 31 December 2023:
76,612 for Bobby Kalar and 57,463 for Paul Rawson vested in April 2023 following achievement of certain performance targets.
Such share options are at an exercise price of par value of the shares, being £0.005.
326,617 for Bobby Kalar and 244,463 for Paul Rawson are conditional on achieving certain performance targets linked to the Group’s
share price or profitability. Such performance share options vest to the extent such targets are met and are at an exercise price of the
par value, being £0.005.
7,894 for each of Bobby Kalar and Paul Rawson options are granted under the Group’s 2022 SAYE scheme, at an exercise price of £2.28
per share.
No non-executive director holds share options in the Company.
During the period, the executive directors did not exercise any share options, and were not granted any new options.
@SNN / Sparky - The more I think about the options the more I am happy with what how they have handled the option sale. The options are vested to reward results and share price growth - these were vested if my memory serves me correctly for hitting about £6 in 2023 - do correct me if I am wrong.
With the SP north of £17 it has certainly been a good few years for share holders and I think that if the directors want some good returns then I have no issue with that. The purchase by the treasury is again a useful exercise - as you say covers the next batch of share options as and when they are exercised.
Hopefully this week we will get shareholder approval for the cancellation of the share premium account and can then move on to get court approval in time for early July - will be really interesting to see what they then do.
What I think is interesting, and hopefully confirms the 31/05 as a TU date, is the RNS came out on the 17th - exactly 14 days before a Trading update.....
Sparks - on balance, I think you're right. But nonetheless, will create general uncertainty / anxiety until any TU. IR said to me they are roughly intending to follow last year's pattern - ie a TU is expected 2 - 3 weeks after the AGM. This was not a 100% guarantee there will be a TU, just a generalisation.
Now we are 3 months into the Shell deal, if going well, then a TU shortly and revised broker numbers would be most welcome. Last May's update was quite material, following a detailed management review (per RNS). Hoping for something similar.
Thanks for your views SNN always well thought out. Friday was a great example of how PR at YU is awful and the Achilles heel of the SP.
Investors cannot see the bigger picture and seeing the timing and CFO selling just prior to an AGM and radio silence from the company 5.5 months into the trading years rightly has spooked a few.
I am the complete opposite never a good time for a CFO to sell but if the company comes out with poor numbers his reputation and YUs reputations and BKs fortune will be in absolute tatters and one is a mistake a twice is stupidity.
Therefore numbers will be knocked out of the park as BK would know what is happening with the sales and content the next update will be fantastic.
Thanks for your replies. Hoping for another good update and a corresponding rise in the share price.
Note 24 in the Annual Report details outstanding share options. Looks like they have a lot of discretion as to when to exercise them. Hence, it does raise questions as why now - why not wait until the dividend is locked in, and after the next TU, which if good lifts the SP to a better cash out price. Also, if there is institutional pressure / demand for shares, why not place the shares with an institution and sell them that way?
Also, how / why has the CFO sold 84,000 at £17.64? Who took those and why at a different price. Presumably a pre-arranged off-market deal. Was that to an institution, placed at a premium? If so, then looks to be a promising sign? Likewise, the company buying at £17.00 could be construed as a good deal for the company - using its share buyback to keep the shares in issue the same, good for eps and buying at a cheap price.
Basically, not enough information in the RNS for the market to see what actually just happened! If there was a placing at a premium, then the SP should have lifted to £17.64. Was that the plan? All gone wrong and all really quite weird to me.
Anyways, if all is still going well, then current SP is a bargain, and still trading with the right to the dividend.
Sparky, cannot really disagree with any of that.
SMT1 we all have different views and that’s what makes debate. Do not get me wrong no political party is currently fit to run this country , not one of them in my opinion.
We are in serious trouble in the UK on a lot of things and what puzzles me is where does all the cash go, NHS is a black hole, benefits spiralling out of control , billions spent on immigration yet I can’t drive 200 yards without hitting a pothole and never paid so much council tax and only get my bins emptied twice a month Can labour do better ? Can’t do any worse
And the worst of all Europe is on the brink of war and our armed forces have never been so under equipped and under manned. Shocking.
Thanks Treven, but that meeting is the AGM. Last year the Trading update came 13 days after the AGM, and I am expecting similar this year. The year before, 2022, they did them together. However, the financial calendar is indicating this is not going to happen in 2024.
The next meeting is scheduled on the 23-th of May. See the link below:
https://www.lse.co.uk/news/uk-shareholder-meetings-calendar-next-7-days-vj8eal90adyi63x.html
At the very bottom.
Sparky, we may not have the same political views, but I still owe you a drink or two for helping me make the decision to invest in YU at £1.85 !!!
NewGacky, the current Government did not want to increase the overall tax burden, plus they could not care less about public services !!
Well if that happens UK PLC is finished as no one will invest and take risk when 40% goes to the tax man. UK PLC is already broken and that would be the straw that breaks the camels back.
Waste on the NHS and benefits needs to be tackled as a priority no raising more money to waste on immigrations, people who have never worked and never intend to or NHS tourists and general sick notes
All the rich will leave and the cesspit of the UK will grow and grow.
SMT1, I am sure that a new Labour government will increase CGT to align it to income tax. I am a little surprised that the current government didn't do it when they were looking for extra taxes!! So if you are PR when you are given the option to exercise and sell your options with a guaranteed buyer. Why wouldn't you want to do it before the CGT rate went up?! Let's say he and his partner have £3m profit, pay £600k now or £1.2m in a years time. We must remember he is a cautious accountant. He will still have exposure to £5m at the current share price.
I have used the drop in SP to top up today at 1632p. I am expecting a return to 2000p pretty soon.
Srbenjo, I think we will get a May trading update on Thursday 30th May.
Interesting points. I agree with you about CGT. I have been suggesting to anyone who will listen (not many) that this is the way to raise income to improve public services.
There's an AGM RNS logged for 23 May, in Share News. Previously they gave a T/U on 31 May 2023 so fingers crossed.
I can see why people would be disappointed that the CFO and HR Director have sold their share options! Having had a think about it I have drawn the following conclusions. The company has offered the directors the opportunity to sell option that where set at very low prices and the company has bought 235k out of 254k of the options exercised and sold. The market would have crashed if they had sold them in the open market. So they had to sell now to ensure they didn't cause problems later. It also crosses my mind that the number they sold will be replaced by other options, so they are still retaining their exposure to the company. In the CFO's case he still has around 300k shares (including future options.) This is £5m in the company. Most importantly for an accountant he now has around £3.4m to diversify. He will have to pay CGT at 20% on his profit. If Labour get in at the next election, I am speculating that he will pay CGT at 40% NOT 20%. This is what I think he is thinking about in his decision to sell. If a good % of your pay is coming in options then you can't live off paper profit, you have to keep cashing some of your options in.
The company has today spent £4m cash, buying back shares. I am hoping they will announce they are going to buy back significantly more in the market. Then you will see a very positive share price move!
My opinion is better to do it before any trading update, which I now expect to be a blockbuster. Share price will reach £20 after the update & the sells would have been forgotten.
the directors at yu certainly know how to **** of investors and crash the sp.
Does anybody know when we can expect the next trading update?
Just had another look on the Yu jobsite - they have filled loads of dual meter engineering jobs. There was nearly 70 on there for a fair while and now there is just 14. That's an excellent sign for them moving forward in the remainder of 2024 and 2025, judging by what they have already achieved and their stated target. Very exciting what they can do now.
Understate and then over deliver perhaps...