Member Info for cta100

The uog share price has gone up recently because the rkh overhang has cleared, so it is not an issue of judgement but rather effect. And Rkh need the cash, i think it is as simple as that.

Q1 update no longer on the financial calendar on the company's website. Not sure if due today or not.

Think in for a moderate drop. With not much change in the numbers, but the review in April hinting to a cut in the ordinary div.

I read it as given up another 10% for i) getting another partner on board ii) a short term coverage of costs whilst deal completed iii) the existing carry amount still exists but any RKH development / cash commitment beyond that to be covered by interest free loan and repaid out of production income, with the exception of licence fees and tax which will bear 15% interest.

It isn't expressly clear in the RNS depending on how interpret the term funding, but ripping up the initial carry would in my mind require a clear statement, and also invalidate the consideration of the initial deal.

Most likely so, the LFLs were a concern on the previous updates, with sales growth only coming from adding new stores, but that is now slightly positive again. And the new stores are mainly in Ireland, so not at risk of just saturating / taking sales away from existing footprint. The company would argue that the debt is managed to a desired level of gearing (which is true to an extent, given all the prior special divs), but the market disagrees with that level, and if do bang on about how cash generative the business is for years an increasing debt load does run contrary to that thesis given current environment. I think this is one of the high street survivors but is out of favour with market on debt levels. The failing of getting personal isn't news. The current drop today could though just be Woodford selling into results for a bit more liquidity despite the numbers being better than usual / expected, but I don't follow those things closely enough anymore to comment on specifically.