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Just wondering, a nice rise today though so far.
With the cancellation of the divi I would imagine a buy back is on the cards in the very near future.
Circa 5% of the company for the £1m divi costs. Pretty crazy if they don't do it.
Kelso, the main market listed investment company, is pleased to announce its consolidated unaudited interim results for the six months ended 30 June 2023.
Highlights
· Raised £6.0 million in two placings of £3.0 million each at 2.0p and 2.5p
· NAV/share increased by 267% to 2.2p as at 30 June 2023 (0.6p 31 December 2022)
· Significant net investment of £5.0 million at an average cost of 63.1p, in THG plc ("THG"), resulting in a gross realised and unrealised gain on investments of £1.76 million, a return of c.35%
· Net profit, after expenses and accrued tax and MIP costs, of £1.0 million
· Post period end:
o sale of 1.5 million THG shares at a price of 105p, leading to a gross profit of c£0.6 million, as we broaden the portfolio
o investment in TheWorks.co.uk plc ("TheWorks") of 2.9 million shares at an average price of 33.4p. Current price is c.37.25p
They have upped their stake.
None of the board are drawing wages
At 2.3p KLSO looks a cheap investment too.
Kelso, the main market listed investment company, is pleased to announce that it has made its second investment, having purchased 2.0 million ordinary shares in TheWorks (LSE: WRKS) at an average price of 31.3p, representing 3.2% of the issued share capital of TheWorks.
TheWorks is the UK's leading family friendly retailer of value gifts, arts and crafts, toys and books and stationery products with 12 of its own brands, representing c.30% of revenue. It has a clear purpose of inspiring people to read, learn, create and play. Established in 1981, with currently 525 stores across the UK and Ireland, it was floated on the London Stock Market in July 2018 with a valuation of approximately £100 million at 160p per share.
On 30 August 2023, TheWorks reported its preliminary results for the year ended 30 April 2023 with revenue of £280.1 million, Adjusted EBITDA of £9.0 million and Adjusted PBT of £10.1 million. It also reported net cash of £10.2 million. For the year to date, TheWorks reported store like for like sales growth of 3.1% and an Adjusted EBITDA guidance for the current year to April 2024 of £10.0 million. The current share price is c.36.5p resulting in a market capitalisation £22.8 million.
Kelso believes that the business proposition of TheWorks is strong with its focus on affordability and that the valuation is highly attractive at an EV/EBITDA1 of c.1.2x. Kelso is supportive of the current board and has voted for all of the resolutions proposed at the forthcoming general meeting on 4 October 2023, save for the resolution proposing a final dividend of 1.6p per share equating to £1.0 million. Kelso believes that at such valuation levels TheWorks' cash is better served by buying its shares back for cancellation rather than paying dividends.
Kelso believes strongly in the strategy and product range of The Works. Arts and craft, puzzles, games and books have an important place in life especially when focussed at the value end of the product spectrum. We are very excited about our new investment and helping restore the intrinsic valuation of The Works which we believe is significantly higher than the current price.
1Excluding IFRS 16 lease liabilities
Https://otc.financial/list-of-market-maker-signals/?utm_content=cmp-true
12.911Pending News/Press Release On The Way
It's certainly an interesting theory. Definitely interesting if it proves true, hopefully its something blockbuster, however I won't hold my breath.
🤞 10% of Nutrition sold for £500mn in a tie up with Coca Cola and ingenuity doing global dtc for coca products 🤷♂️ that's my pipe dream. I'd be happy with a 3 quid mbo though tbh. Money that I can use as the shares are taken out of my hands, otherwise its tied up for forever as I'll never be able to sell.
I posted about this the other day. I think it was swallowed amongst the 100 fud posts though.
Great news and exposure for MP hopefully. My local range sits pretty much equidistant between the nearest 3 icelands.
Not necessarily directly THG related but an ICELAND opening in a corner of my local "the range" is an
Interesting move.
Hopefully stocking the MP range and increasing exposure.
This actually sits in a central point between 3 Iceland stores in the surrounding area.
https://www.iceland.co.uk/iceland-at-the-range