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Buyback tranche must be about done now, 8m shares since end of Nov with pps range 270-320p broadly so assuming a 300p avg maybe £1m ish left to go.
As they are confident on flat PBT and with the weak FCF in H1 it would suggest H2 would have decent cash generation, whilst dividend will eat a chunk, I hope they keep any dividend increase modest in favour of further buybacks at this level.
There is one, they post everyday at 7am, with details on the buyback from the previous working day. So this morning posted Thursdays. A broad estimate I expect we have another couple of weeks at this increased pace. As with an avg price of say £3 a share we would get down to around 468m shares, right now we are still over 470m buying back about 100-150k a day.
As I mentioned this morning before the results of placement, I though this is a real possibility and that I still think the CEO either tries to take private or sells off some/all the company, presumably to Atari potentially? Although they are not a massive company with endless cash to burn.
I agree Atari on paper is a good bit of news, but if the assets/IP are decent but struggling for cash and at depressed pps, when Atari owns what like 7% or something, and CEO stake may increase depending on takeup, they together could see 50%+ and could vote through a takeover deal at prices not ideal for many Tinybuild shreholders.
I am just making guesses.
Yep, I am neither but I follow the story of it as I did research into it but figured not for me due to cash burn, so my only question would be can management do anything meaningful with this $14m? Hope so for all involved but could be a plaster rather than a cure.
They say $14m no? Which is about £11m at 5p a share is 220m no? Sorry I may need some coffee
Am I right this will essentially add another 220m shares? or has my maths/RNS reading failed me this morning?
Great to see the pps still not far from the 300p level during these buybacks, long term these depressed levels are great for a buyback.
Anyone know what distates the volume with which they buyback each day? Some days of lower share price they seemingly bought back much less then others, I know there are maximum rules like x% of daily volume but those low days were well below the volume limits I expect.
In general this is good news, they are doubling down on the strongest and hopefully most profitable brands, and getting rid of some of the excess or less well performing ones. The key is these disposals will impact revenue, but if we get some cash for them and can deploy the cash in better places then great. Now it will be interesting to see when the cash hits the balance sheet where it might go, capex? other m&a? buyback? debt pay down?
Anyone watching as ROVR taken out by Blackstone, and now Musti by a group. They were also taken out at high valuations compared to Pets. Hope we dont get taken out for something measly like 400-450p...
Comment below about cash reducing significantly, this is true but keep in mind about £75m was paid to reduced the (fairly small) debt pile significantly. Seeing as it’s SONIA+1.5% I believe, this is smart. I would say they should still push on withbuyback as it’s ‘only’ £25m but their guidance suggested still will remain highly cash generative now hiccups largely over.