Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
Beo1...
Full expensing is a 100% first-year allowance which allows companies to claim a deduction from taxable profits that is equal to 100% of their qualifying expenditure in the year that expenditure is incurred.
Spring Budget 2023 – Full expensing - GOV.UK
GOV.UK
It is NOT
"The only thing "Full Expensing" does is delay the timing of that tax payment, it doesn't stop it. "
Blah, I tend to both buy and sell in tranches, but I'm more disciplined on the buy side. I set targets on shares that have/are falling and if I'm feeling brave add as they fall further (though almost always confined to large-cap, stable earners). when it comes to selling, I invariably sell too soon (see RR, and MKS lately!!). If the situation obtains where I can sell most at a good profit and run the rest "free" I sometimes do.
As a very long-time investor, I am gradually moving my folio to defensive positions, more bonds, pref. shares, gilts, and stable high divi earners. I'm essentially trying to minimize/eliminate risk.
Amidst a spectacular set of results, this
" Although bookings have been a little slower in recent weeks with average load factors currently 1.3ppts down on Winter 2022/23 at the same point,"
is likely to be seized on by the markets and may cause a sharp fall at the open this AM. If so, I will take the opportunity to add to my position in a well-run, company now in a sweet spot as everyone wants a holiday to get away from the constant griping about the UK from the media!
I am confident in the medium-term future here and see some way to go in the SP.
Yeah absolutely true BBD. I sold 70% of my holdings in August at 926 p and the remainder this am at 1102 p. My view remains that I'm happy to have collected a reasonable profit and will redeploy the revenues elsewhere where I think prospects are now better. Good luck to you if you continue to hold.
H
Had a glance at BT's latest AR, relevant data as follows:
Total capex in the year on PPE (property plant and equipment) was £4bill of which Openreach was £2.8billl, consumer (ie EE) was £660 mill therefore if all were subject to expensing that's £3.5 bill X 25% = £875 mill. tax relief. (see page 160 of AR)
Looked at another way (see p 177 of AR)
Openreach's PPE was recorded as £29.1 bill in April 2021,£31.2 bill at Apr 22,£33.7 bill at Apr 23ie additions of £2.1 bill and £2.6 bill in each year. So IF ALL of that capex is expensible we are talking of around £2bill pa or a tax reduction of £500 mill pa
whatever the numbers are, it is a significant impact on BT's bottom line.
See page references above, for anyone who wants to deepen the analysis there is plenty of data to chew on.
Tweedly... I posted this on 12 Nov
"If the Autumn statement does extend expensing then the benefit to BT over the next few years will be significant , from the latest AR Openreach spent £2.5 bill in the year to MAR 23, obviously not all of that expense will qualify BUT a very large chunk, must. Thus, over the next 3/4 years BT's notional tax deduction may well be reduced significantly .
A wet finger in the air: say £1bill (of total exp) pa X 25% for four years =£1bill which will drop through to the bottom line. Given that BT made just shy of £2bill last year, that's equivalent to an uplift of 12% Pa over the period."
Now that we know the details I'll do a more in -depth analysis and post maybe tomorrow.
A very good set of results shows the benefit of Sage's migration of their customer base to automated systems, which held back revenue growth for a year or two. I have held here since late last year and slightly reluctantly, I'm taking my near 100% profit. I still believe that Sage is a well-run company with products that meet their market BUT at a P/E of 50+ that's just too rich for me.
I wish continued holders all the best, but I cannot see significant SP growth from here. As is often the case I think the price has been running ahead of events for a while. In the event of a significant retrace, I'll be back but for now, I take my profits and will invest elsewhere.
GLA
LTI
What is the psychological term for repeating?
Maladaptive behavior that repeats, typically known as repetition compulsion, is one of the primary reasons that people seek psychotherapy. However, even with psychotherapeutic advances it continues to be extremely difficult to treat.
LTI you need to trade in your abacus and get one of those new-fangled calculators. If you do, it will show you that LLOY has paid 7.11 p in divis per share in total, since 2019, which equates to a REAL return of 16.7% over five years. That allied with the fact that the LLOY SP on 2 Jan 2019 was 50.66p at the open, illustrates the actual value of a LLOY holding over that time. Your fantasy estimates are just that, Fantasy.
The possibility of BT buying music magpie is alarming, the fact that they appear at board level to be contemplating it is terrifying! The scale of MM is minuscule, considering a bid will waste time better devoted to almost any other of the issues the board needs to address. I have been buying here lately in the sub 120 area with the expectation that medium-term BT's prospects are improving. If this latest folly is indicative of the board's competence, I am going to have a serious rethink. I'm sure there have been worse ideas floated by major companies but at the mo. I can't think of any
WTF
Big article in the ST over the weekend, marking TE's scorecard broadly positive BUT, there was a hint that he might be planning to dispose of the SMR business. Too speculative, too far in the future, he is an accountant and his plans are purely to drive revenues in the short term.
From the weekend's press.
It looks as though the Boots Walgreen buyout deal will net LGEN in the vicinity of £1bill to take responsibility for a PF which is £63 million in CREDIT at current valuation. I'm struggling to see how this can be anything other than a significant positive for LGEN
The deal is a prerequisite for Walgreens to sell Boots which they paid the equivalent of ~£6bill for in 2014. deal which in retrospect was a stinker. They are currently seeking to unload Boots at a loss of £0.5bill having hawked it around the markets for a couple of years. I suspect with Walgreens as a forced seller LGEN will be getting a good deal in taking on the Boots PF . It fits well with LGEN's current strategy to bulk up its operations in this area. I foresee plenty more similar deals in the next 2/3 years, the recent bounce in gilt yields has made many previously borderline insolvent PF's viable again and companies are queueing up to unload while they can. This is good business for LGEN which I hold and am adding on drops.
Https://www.londonstockexchange.com/news-article/OCDO/ocado-announces-deal-with-mckesson-canada/16211648
this is the RNS and the REALLY significant thing is that McKesson is NOT a grocery retailer, they are a pharma distributor. This opens up the possibility (probability?) of OCDO's technology being used by lots of other companies with goods to distribute. This is IMV a VERY significant development.
Prime time...they've got little choice. One of the many reasons for the long slow drift of the FTSE is that regulators are forcing pension funds (who are among the biggest holders of assets) to shun the risks of stocks and invest in other more stable assets. this has been catastrophically overdone, and the evidence is clear. In most countries where pension funds have more freedom to operate (i.e. Australia and Canada), they have done much better than the UK.
In my working life, the plethora of regulatory authorities was the biggest single barrier to progress, nothing seems to have changed.
Today's news that CPI is down to 4.6% is a further boost to the BT pension funds' long-term viability. It must be assumed that, like me, they have been buying bonds with yields at or above that level. As I have said before on various boards, holding bonds will pay off as/ when inflation and interest rates start to fall, as they certainly will in the future, maybe not immediately but eventually. While the recorded impact on The BTPF will take some time to emerge., it is clear that the problem that has dogged the BT SP for many years is, finally, going away.
As ever the market will take its time to reflect that in the SP, BUT, as one who normally never predicts SPs here's my take. The BT SP WILL be higher over the next couple of years, I will hold, take the divis, and wait.