RE: RNS5 Mar 2024 10:02
Apparently it is not possible to use LSE's historical SP figures due to this:
Trotsky gave a good explanation which is worth repeating:
"
AoC, the 285p figure I quoted is not my figure; it's LSE's. Check the historical chart.
I've checked some AV purchases I made in Aug/Sep 2020 and they agree with the prices quoted on the historical chart, so I think it's safe to assume that LSE has not adjusted the older share prices to take account of the capital reduction in April 2022 when we each received 76 new shares for every 100 old shares held. So, I would asssume that your (sarcastic) "think about it?" comment would be in reference to multiplying LSE's figure of c285p by 100/76 (which would give your figure of c368p, allowing for some rounding differences).
Hmm, so far so good, but what about the c102p per old share (or c134p per new share) we received as part of the capital reduction? For a proper like-for-like comparison, you'd need to either add the c134p to today's price i.e. 368p vs c551p or deduct it from the adjusted July 2020 share price i.e. 234p vs 417p. You can't simply ignore the capital return or discount it as if it was a normal dividend return (it wasn't paid out of AV's current year profits and is non-recurring) simply because it's convenient for your argument.
For example, if (say) you'd originally bought 1,000 old shares at 284.5pps (LSE's quoted closing price) on 6 July 2020 they'd have cost you £2,845. Today, you'd own 760 new shares which, at 417pps, would be worth c£3,169. However, you'd have also received c£1,018 as part of the capital reduction. QED if you'd bought 1,000 old shares for £2,845 on 6 July 2020 and sold your 760 new shares today at c417p you'd have generated a total capital return of c£4,187 plus annual dividends of c£793 i.e. a capital return of c47% and/or an overall return of c75%. Not that bad when you consider Covid, war in Ukraine, Truss-enomics, rampant inflation, near zero growth etc. LGEN (run by a man) doesn't even bear comparison (unfortunately)."
Nor can I use my broker's figures for the same reason.
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