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I noticed this due to an upgrade from a broker.
While I agree that things are looking more certain the govt is still clarifying policy so the road isn’t at all clear. I keep reminding myself that CEOs are often experts in positive spin, especially when it comes to mining or exploration, as they will need to tap the market for funds in due course and they need us to believe in them.
So I am in the ‘don’t know’ camp but will keep an eye on it until there’s more certainty about the projects , funding and govt involvement.
Hi Primetime
It is frustrating that the 50p is a glass ceiling at present. It's my biggest holding so probably looking to use the div elsewhere rather than reinvest automatically. Too many eggs in this particular basket. We do have the Q1 numbers on 3 May which will be useful to give the SP direction.
LTI
A final div is only a debt due after the scheduled payment date, not at the date it was approved at an AGM.
From LexisNexis
'Once a final dividend is declared (ie approved by the shareholders) it becomes a debt that is immediately due from the company to its shareholders, unless the terms of an approving resolution provide for it to be payable at a future date, in which case it becomes a debt due only on that date. Once a final dividend has become a debt due, its payment can be enforced, meaning that the shareholders have a right to sue for that debt, if the dividend is cancelled.'
I am holding fire on the reinvestment of the divi only because LGEN is a sizeable holding in my portfolio at just under 10% of assets but rather more in terms of divi income. Ditto Lloyds. I do think LGEN has a way to go yet but much will depend on the new CEO having a good reputation and a safe pair of hands.
Verney
I reckon Peel Hunt have got it about right. The cost control measures are making a difference and there is clarity on write- offs for the current year. The mad dash for growth through M+A seems over for the time being while the AI arm of the business looks an exciting prospect. The numbers should be achievable with profits in 2024 as write-offs diminish. Jam tomorrow but I am optimistic.
Generally more cautious than historically when companies were being taken into the firm thick and fast, not always successfully. It's good they have a handle on the numbers and are better managed. Given 'skittish' markets the importance placed on cost controls is welcome as overall revenue gains might be more difficult in 2023. Market estimates have been beaten and along with a conservative view of the top line growth prospects the share price might be underpinned as they are there to be beaten.
It would be a help for confidence if Sorrell gives interviews on the likes of CNBC on results day. That’s what’s happened in the past and would draw a line under the health issue.
As for S4 I am confident medium term though it’s a long road back for the share price after the debacle of the accountancy failures. Good like-for- like performance to beat market expectations would be a helpful start.
The gripe I have with Sorrell was that he felt the need to issue an RNS to tell shareholders he had a health issue but didn't update shareholders when he was back in the saddle. Dropping a random emailer a message to say he OK is not the same at all.
It's all very well Sorrell expressing his ambitions for whoppers but the downside is that failure to achieve publicly stated goals will disappoint and the share price could tumble. It's always better to beat market expectations. I do however detect a more cautious approach since the accountancy failure so provided the results meet targets and the outlook is positive we can hope for a positive reaction in the price. It's a big 'if' though.
Nobody has offered an opinion that I’ve seen. I would think writing it off would be a good idea then any offer will feel better.
This is a can of financial and legal worms and huge losses in revenues and asset values loom.
Thanks all. Most helpful as I hoped.
As it’s not on my account - it’s a bare trust held by son for his non tax paying son so the admin is difficult as I am not in control. I just advise on buying and selling. I’ve coughed up CGT on my own account in the past so suitably clued up in broad terms.
Anyway I’ve managed to avoid the issue by using a calculator to tot up correctly. I was beginning to focus on Essentra which is paying a large special div. and actually I might jump in there if I can find any change from my pension…
Lloyd is my biggest holding by far and I need to spread the risk and haven’t yet decided to re-invest the divi as a result.
As we don't seem on topic a lot here I was hoping someone might help me on CGT. Son sold a share and used the wrong orriginal cost which means I am just over the CGT limit (by £70) - it's minor grandson's money not his. I miscalculated the original cost and wonder if I am right in thinking my best bet is to create a capital loss to get his dad to buy something a day before an ex date and sell the day after. All other things being equal the price should fall by the dividend amount. I say this as he hasn't had to fill in self assessments yet as he is too young and the form- filling for such a small sum it more trouble than it's worth. Any flaws in this idea or any better ones? I was thinking Natwest as their ex date is looming and is a significant sum- 10p a share. Help very much appreciated.
I wondered if we can get on topic. I don't care who voted but the fact is we did. As fleccy says 'The Brexit vote was a vote for change'. Anti- govt vote plague on all your houses principles basically with no obvious consequence. Hence votes for the likes of UKIP in the old Euro elections. We need to move on and make the best of what we have and I say this as a long-standing elected bod locally who voted to remain. Are we all defined by that? Hope not.
Meanwhile did anyone notice there was a bit of press yesterday about Scottish Widows which has lumbered itself with a loan to Home REIT for £180m. Investigations are taking place but the chances of the assets going anywhere near covering the loan are remote. You do have to query the risk management process undertaken here. I expect LLOys will tighten that up now the horse has bolted.