Member Info for Alansugareatyour

”Madchatter Knowing Tescos i expect they may have been more like 60 days on credit terms but having said that ESL must now be in the driving seat "

There would be no reason for esl to change the payment terms would there, Tesco are huge and business is booming, why poke the bear and annoy them. These market conditions won't last forever and Tesco will still be a huge customer after.

"Do you think Alan they might use a combination of gov loans and forward paying loans with vat cash (bearing in mind tesco might be on 30 days credit terms etc) to pay off 18% loans earlier. Then use bumper tesco cash to make vat bill?"

I don't know the terms of the current 18% loan and any early payment clauses. But there is government supported funding, very low interest rates and vet deferral none of which can be remotely bad for the company and I am sure the board will be considering. Throw on top of that an increased turnover and it's looking decent with regard to options.

The only short term downside I see is keeping your workforce healthy which I am sure is less of an issue for an HGV driver due to enforces isolation for most of the working day.

I agree that it will not affect the shareprice but it a useful amount to have available for a few month as a contingency.

50m would likely seem reasonable for a quarter, they do not need to take up the deferral but I assume most businesses would defer an element even if to just put into an interest bearing holding account or to offset overdraft interest.

As a lot of people don't follow that it's just a deferral (still great news for businesses)

VAT payments
The next quarter of VAT payments will be deferred, meaning businesses will not need to make VAT payments until the end of June 2020. Businesses will then have until the end of the 2020-21 tax year to settle any liabilities that have accumulated during the deferral period.

The deferral applies automatically and businesses do not need to apply for it. VAT refunds and reclaims will be paid by the government as normal.

"Bouncer would that 50 mil become direct profit?"

It has no bearing on the profit an loss, if they choose to defer it helps cashflow until the payment is due at the end of the financial year. An interest free short term loan essentially.

"ESL have just had a £50 million boost with no VAT over next 3 months...
Bigger than mcap itself"

Remember bouncer they still have to pay that £50m just later in the year, it's just an interest free deferral

https://www.icaew.com/insights/coronavirus/uk-practical-business-advice-covid-19

A good little summary of various things if interested. Not specifically esl related but useful none the less.

If any people or family members etc in difficulty, the 3 month mortgage holiday is something they should likely look into to ease the pressure.

May get a little selling pressure from rainbow chasers going to ncyt on Monday, subject to no news here is suspect.

"I believe it is a deferred of vat for a quarter, you still have to pay it but a quarter later"

I was slightly wrong here, the vat deferred is paid at the end of the financial year, so essentially an interest free <12m loan given by HMRC.

Decent, I know a lot of businesses will take them up on that to ease cashflow at this tricky time.

Have a good one bladey, they hopefully a good week or two on here. Another one like this and I'll be delighted

"Alan, you’ve got this habit for bringing negativity on any positives.
Sold too soon I guess"

Just trying to bring some reality to the posts.

Still in an loving it, great recovery week, love to see 13-16p next week.

Roll on a good week.

But just on this point, they still have to pay their vat but I believe it's a deferment.

I believe it is a deferred of vat for a quarter, you still have to pay it but a quarter later

Much more than a 50% increase, was near 5p start of the week

Yes 7.53, we are talking about percentage, see post I replied too

7.53 but bouncing

We will get a bit of a sell off later when the Friday people leave

Tink would Joe as not an II, thats why I didn't think he was selling uet

Don't think you'd get a tr1 for AXA as they were already under the reportable 5% on their last tr1

Someone mentioned 50m yesterday, but no supporting link