Member Info for Culpepper

Excessive? Compared to what similar outfit?

Whatever Blackrock are or were up to, they held 2.2% at 31st. January.

Sig (Shi ) - insulation - also reported favourably yesterday. Something of a correlation in Wickes last published outlook.
“Looking ahead, we expect to continue outperforming the market and are well-placed to capitalise on the ongoing requirement for home improvement - namely an ageing housing stock, favourable consumer trends, and the increased focus on insulating and retrofitting homes. While we recognise the pressure that consumers will be facing in 2022, we have the right model, a strong pipeline and order book, and remain confident of making further progress in the current year driven by a material increase in DIFM revenues."

And I wonder if you have read the update thoroughly. It is made very plain.

“The overall impact of inflation is estimated to have added c19% to Group growth over the period, albeit the levels have varied across the different operating companies. This reflects the annualisation of input cost inflation experienced in the second half of 2021, as well as further increases in early 2022 as our suppliers have passed on steeply increasing energy costs in manufacturing. There remain some constraints in supply across the business, but these are continuing to abate, as previously reported.

Input cost inflation is currently higher than previously anticipated, as noted above, and expected to remain elevated in the near term. We expect that the resulting increase in revenue will more than offset any localised market softening.”

It is a natural enough inflationary consequence with price rises being passed on., as companies report. There is a perspective on that in Shares Mag, and comparison with Travis Perkins.
https://www.sharesmagazine.co.uk/news/shares/rampant-inflation-drives-faster-than-expected-growth-in-building-materials-sales
It is to be hoped that Sig’s continuing recovery will encompass further market share gains.
And on debt, it has refinanced early and will get to a position this year oftrading cash positive, at least 6 months earlier than planned.
No negatives there for me.

insulation

“Demand for our sustainable construction offerings remain strong”
More effective must surely rank highly in any building project in today’s environment.

Getting traction “post Covid” as it happens. It was pretty much a failing company before. Everything’s changed since CD and R cornerstoned the recapitalisation - and the arrangements to turn it around are starting to bear fruit with profitability increasingly in sight. Still a relatively early stage recovery company, coming a long way faster than expected.

Behind for reasons previously given, revised programme.
Revised targets for 2021 met, and suggestion of catch up activities.
For the record.
https://www.lse.co.uk/rns/AEXG/2021-full-year-financial-results-and-update-c4afzoz4hs0vvvl.html

Likely to provoke some analyst/commentator positive reporting.

For the record
https://www.lse.co.uk/rns/SHI/trading-update-g1c4odqe6amjj85.html

Kitchen suppliers, report a good start to the year.
https://www.lse.co.uk/news/HWDN/top-news-howden-joinery-backs-outlook-after-strong-start-to-2022-buxo5myjaq3ia7x.html

And there’s that, as an optimistic thought.
“Where the business generates cash in excess of that needed to maintain a strong balance sheet, fund investment for growth and once the ordinary dividend has been met, the Board may conclude that it has surplus cash. Were this to arise, there is currently a preference to return this surplus cash to shareholders via share buybacks or special dividends.”

Nothing to add except Wickes operates a progressive dividend policy, based on eps. Wickes originally intended to start with a dividend of 30% of adjusted profit after tax for the last full year, but as per the results the payout ratio was enhanced to 40%.

AGM is 12th May. Last year trading update was about a week prior to AGM. Last outlook -

· Trading well in 2022 to date, and ahead of plan
· Supply challenges being managed
· Confidence in 3% Group operating profit margin for FY23, and in the Group's medium-term path towards 5%
· Cash generation expected in H2; full year cash neutral.

To coincide with AGM.

Scheduled for 26th. May.

Although Wickes is currently up today, as most will know, the price has been adjusted down today to take account of the dividend.

It remains cheap - so today is likely as any a good day to buy an equivalent amount to what I shall get in dividend. A trading update may not be far off.

And what about a bit of consultation with the people subscribing to the loan note open offer?
https://www.lse.co.uk/rns/IDE/result-of-open-offer-to-subscribe-for-loan-notes-vjqukgko9rikr3q.html