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If the current share price post-consolidation is exactly the same and we assume it's 240p (for my simple maths). Some will be marginally better off and some marginally worse off. It depends on your fractional entitlement which you will lose as it's being given to a food bank charity.
I will lose 0.105 of a share, but be marginally better off. However if you hold, for example, 1000 shares you will lose nearly half a share and be fractionally worse off.
In my case..
Current holding:
15,000 shares @ 240p = £36.000
Post dividend and consolidation:
15 for every 19 shares = 11,842 shares @ 240p = £28,421
plus 15,000 times @ 50.93p dividend = £ 7,639
Value = £36,060.50
Of course all this assumes the share price will be exactly the same after the ex-dividend date.
I'm a long-term holder in TSCO and will continue to hold, but if I didn't hold my shares in an ISA I'd be very tempted to sell now and buy back post-consolidation to avoid all the unnecessary hassle and tax calculations. I think this is why the shares are under-performing peers at the moment, but should hopefully redress the balance if and when people buy back in. Please DYOR.
@ggplyr
Yes that's right. I think I will have to temporarily change my ISA settings to hold income on account instead of paying me out monthly.
Thanks for your reply.
Thanks
When companies accompany a special dividend with a share consolidation they say it's to maintain both the share price and EPS on a comparable basis. Until we know the basis of the consolidation it's hard to know what the impact will be, but it's looking like it will be in the region of 4 new shares for every 5 existing shares held. I think the tax implications for shares outside an ISA are the same as any dividend payment.
However, I do have a question:
All my TSCO shares (15,000) are in an ISA which pays out income on a monthly basis to my bank account. So it looks like if I take the £7,500 or so in cash it will effectively dilute the investments I hold within my ISA wrapper.
Presumably I will have to re-invest the special dividend within the ISA before it's paid to my bank to avoid this?
Hi castleinthesky,
If you are a UK resident then you can't claim back any withholding tax deducted by a foreign country on your dividends (Foreign Tax Credit Relief) if, as you say, you do not pay any UK tax. Please note, I'm not an accountant, so please DYOR.
I didn't use PrimaryBid this time, I used Interactive Investor as I already hold 20k GSF in there. I've heard nothing from them, but thanks to other posters it looks like we're only getting 40% of what we subscribed for. When I have used PrimaryBid for a retail offers in the past, the cash balance for any unallocated shares has always been refunded on the same day as the allocated shares showed up in my nominee account. So anyone using them should hopefully get their cash back before Christmas.
I think it's 7 days before suspension. So if there's no RNS before next Monday, the shares will be suspended then. I might be wrong.
From what I understand... after taking up shares at 10p in the Feb 2019 fundraising, Woodford held 48.83% (121,774,856 of 260,052,484). They offloaded about 40m in July 2019 leaving them with 31.16% (81,113,849 of 260,287,407). In Oct 2019 Woodford sold some more and the residual holding of 51,661,309 (19.81%) was transferred to Link Fund Solutions as the administrator. These shares were finally all offloaded in April this year.
The RNS is out:
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/EUA/14497600.html
Yes Chunky, they got pulled up by the Financial Reporting Council this morning for overstating revenues and understating cost of sales since June 2018.
https://www.investegate.co.uk/financial-repcouncil/rns/frc-findings-in-respect-of-galliford-try-plc/202003120710558961F/
Whilst the dividend is extremely disappointing (suggesting an annualised dividend of no more than 3p), the results aren't too bad in my opinion. But the market doesn't like companies whose accounting cannot be trusted and this is probably why even in this brutal market the shares are badly underperformed today.
I sold half my holding yesterday so my residual holding is all profit. I'd have sold the rest this morning if it wasn't for the fact that I reckon there's probably 30-40p short-term upside one today's close once the Coronavirus panic levels out. That said, there are plenty of better post-Corona plays than Galliford imho.
Good luck to all holders.
It's pretty obvious that the suspension of trading is because AIM became aware (a day or so late) of some **** close to the situation stating that CITIC have already signed a Letter of Engagement with EUA. AIM suspended trading and have asked EUA to clarify that position. If there was no substance, EUA would have said days ago that it's a load of b*llocks and trading would have resumed. Whilst many seem to be determined to pizz on people's fireworks, I've yet to hear a convincing argument that anything other than a deal is on the table and it is currently being negotiated. Only time will tell what the outcome (if any) will be, but it's clear that many posting on here wished they had a few hats in the ring.
I agree Getinthere.
I bought 222.25k EUA in October, but then sold 200k at a decent profit last Friday when the SP ticked down a little. It's looking like a very poor decision as I can't see any other reason for this suspension than an imminent deal. Hopefully an announcement sooner rather than later detailing terms. For me though, as the late Jim Bowen used to say, it's a case of... "Let's have a look at what you could have won!"
Good luck to all that have held on.
I'm pretty encouraged that Spruce have bought some more at these levels and not just cut their losses. Their couple of forays into the UK market haven't been particularly successful according to this:
http://www.investorease.com/tr1.php?epic=MTRO&holder=1065&token=mtroa2b877d44
As a long term investor in MTRO it's hopefully onwards and upwards!!
GLA
http://www.investorease.com/tr1.php?epic=MTRO&holder=1065&token=mtroa2b877d44
Skeletor: I'm in a similar boat. I wish I had of cut my losses this morning. Instead, I bought at 837.8 and then again at 813.4 because everything in the results announcement was already in the public domain. At least it's brought my average down to under 1000p, but I'm lumbered with 9000 of these shares and taken all my disposable cash. Hoping and praying for a bounce in the coming weeks.
Good luck to all holders.
The TR-1 RNS issued by Norges Bank today suggests that yesterday they loaned out an extra 121,182 shares of their disclosable 3.17% holding. They presumably loaned these shares to Samson Rock Capital who are currently shorting Galliford, but I don't know.
Thanks Chunky and Mike for your numbers about the forthcoming interim dividend.
I'm encouraged by these as I have a fairly large holding in GFRD from my inherited 2% holding in Try Group plc many moons ago. I have come to rely on the dividend income especially since there will be no income from my newly-acquired Bovis/Vistry holding until late 2020!!
Good luck to all.