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Can only see Smiths going down further. High Street footfall down 40% in July. Many travel stores still shut or seeing a fraction of the footfall, Smiths is too exposed to the travel downturn. Set to make a £75m loss for the year to August. I don't see things improving in the next 6 months. Have added to my short position. Long term investors I would advise against topping up now, wait until this hits 650ish in November wait until redundancies & store closures have begun.
Amz, you are right and wrong. In theory the company will have £1b extra free cash, meaning the company should be worth £1b more, there will be more shares. investors who don't take up the offer will be diluted but the company worth £1b more. In practice share price might drop on the news because investors are being asked to invest more (the £1b) and some will opt to sell driving the value of the business down, therefore investors who don't take up the offer will get diluted and the company be worth the same or even less (or not go up in line with the £1b either) they will be net losers on the deal.
Rights issue is 26th May - 9th June.
Yes and no. £1b is for temporary cash flow & growth opportunities in Germany. Premier Inn plan was acquisitions in Germany they want to accelerate that post CV19 as property prices fall & independent hotels look to sell. Premier Inn did this in the UK between 2008-2012 increasing rooms by 28%, in a period of weak demand. The medium term aim is 50k extra rooms in Germany (as well as he 9k rooms they had committed to). Premier Inns growth opportunity in German is massive and its a much bigger market than the UK.
Sold in the buyback and have re-bought today at almost 2 for 1 on shares basically doubled my holding!
Also O2 were the first partner to pull out of Phones4U leading to the others following suit very quickly.
I called this back in Oct (see comments below). O2 is probably 3rd biggest partner behind. Writing was on the wall in August 19 when DC sued O2 for not getting the deals they were promised and loss of earnings.
Out with the traditional retail guy and in with the digital retail replacement. What alarms me most is the lack of top level Mobile experience in the management
What effect do we think an announcement of 250 standalone CPW stores to close over next 12 months could have on SP? My gut makes me think a positive spike on announcement.
Wow 155, hopefully can finish the day above 147
Agree too many stores, but i think since the last round of closures they have looked harder at store estate. I believe they arent keen on store closers until the old legacy contracts with high volume targets with the mobile providers expire (which we were told 6m ago have up to 18m left) which is why it is 1 more year of pain for mobile! I think then we will see the standalone store estate halve pretty quickly after that. Maybe even some scope for a small 3in1 format stores in some of the larger standalones.
Think the results are strong & business on track. New 24m postpay provider Virgin Mobile along with new mobile propositions next FY. Electrics sales flat in a -3% market, also when you factor in a period of a very weak Pound, this shows great stability. Can see this creeping slowly up to 150-160 by May. Biggest risk to this is a Tory majority & Brexit end of Jan & the GBP dropping to record lows. Labour/SNP then 150 by Jan.
Could O2 be the first network to pull out of CPW when the legacy contract expires in the next 12 - 18 months?
DC update tomorrow after trading. Hummm 2nd round of store closures? Last year they were announced about a month before Finance result, which are not due to 20th June.
Hearing £310m. Half year estimate 300-330m. DC stated when the news of the fine broke they said they would still make £300m. But hearing 310m
Anyone know what time we would expect to hear?
When is the announcement of the special dividend?
So do we think there will be a little bump/correction in the morning, like a 2—4% rise?
3.9 billion from sale. Company has 900m of debts, plus pensions plus wants to fund expansions. I'm going to say that 1.9 billion will be returned to shareholders. There are 183million shares so that's about £10 per share. Share price is £49 per share atm so doubt we will get £50 back
Isnt it? Like for like growth in every category, except UK mobile (-4%, attributed to closing 90 stores).