Member Info for JG68

NewbieInvest

Yeah thought I did well getting 74 Thursday, then again this morning when my next sub 70 buy order filled. Bought twice more this afternoon, last one 64 8.

Been trying to catch falling knives here and EZJ today.

The way I see it in very simplistic terms, if Playtech were willing to pay 156 recently and assuming they took on the debt, good enough for me. The market is being brutal again lately.

They still hold over 4% see below

https://igamingbusiness.com/finance/fs-gaming-888-stake/

JW

Re the debt they have 450 notes due 28, 580 due 27, and 350 due in 26.

So they have at least 2 years to integrate all the savings, close unprofitable shops, and grow as per their med term plan.

Although the debt is high they have some time.

MCG slightly different in so much the hybrid bond call date is Nov next year, so the pressure more on them than here I feel.

Be interested to see if K Alexander et al add to their position

Volume seems to have dried up, slipping couple % each day now, annoying on such a strong market day

There must be value here given recent interest from playtech and previously Kenny Alexander and Co buying stakes.

Does anyone know what the previous actual EBITDA guidance was for 24 before the recent profit warning? Thanks

Will we not see a " further to recent media speculation" RNS ?

Who in their right mind would participate in the open offer when in all likelihood this will be in the 6s on Monday, and sub 6.5 is more likely than not ?

I'm amazed the market hasn't caught wind of thus if its true.

Gocpi

From the exchange that I had with IR earlier this week, I get the feeling that 80 million of the debt due next year could well be repaid, as you say we will find out soon. And yes the balance sheet looks much healthier, and given the overall operating profit last year which was 106.5 before the adjustments, there is a profitable business underneath even before the cost savings and new contracts renewed/ agreed on better terms.

In fact I would suggest that with all the monies due as you point out, there is scope for an interim measure of shareholder returns via a buyback, just until the FCF is sustainable and dividends can be restarted. Probably wishful thinking but quite feasible I think, but what do I know.

When you look at the presentation slides 15, they also show what cashflow would be rebased without the one offs.

So starting at 115.5 outflow ( excluding the business exits which what I think you're trying to say), 6.1 went towards the cost savings, 30 to pension deficit, 20.1 cyber hack and 4.9 furlough repayment, which would have resulted in negative FCF of 54.4 for last year.

So I guess what I'm trying to say is firstly after the cost savings fully show through, based on last year we would actually be generating positive Free cash flow, and secondly they could potentially use some of that 207 this year to absorb some of costs / one offs which will result in outflows of 70-90 to actually end the year neutral ir with positive cashflow, therefore bringing forward the turnaround if they choose to.

If that makes any sense.

Hexam if you look at note 2.9 annual report that box states reported FCF 154.9 including business exits then they deduct 23.1 business exits and 16.3 pension deficit triggered by business exits resulting in 115.9 excluding business exits.

So they seem to report FCF with and without the business exits, no?

So if this year they decided to use some of the 207 coming in, for say further business exit costs, pension deficit payments, costs associated with the savings program, that would impact on the reported FCF / outflow figure at year end wouldn't it ?

If you take out the business exits costs the cash outflow last year was 115 mill, then take out other one offs such as cyber, pension deficit and few others the outflow would have been 55 mill last year.

Fast forward next year, add on the cost savings and that should result in positive FCF and an overall profit.

The actual operating profit last year was 106 million, we headlined a loss because of the one offs etc.

The market can't see that yet as its working on outflows for this year too, and guidance is a bit wooly for this year.

Surely they're taking the pee with this comment

Hasn't the company just demonstrated the sum of the parts is multiples of current sp.

We rework our sum of the parts, which increases our target price to 22p to reflect the disposal proceeds, along with a recent re-rating of peers, e.g. TEP and SRP," it said.

Spot on Trisor, token upgrade as if to say " we're still right"

Well unfortunately for us UK PIs, I can envisage a while longer of market turbulence given the marginal miss on CPI today, especially because if the BOE doesn't lower rates in August, it begs the question well when then?

The reason I say this is because inflation is forecast to very moderately tick up again over the next few months, so what do they do, lower rates after CPI has ticked up again? Cant see that behind the curve idiot Bailey and his bunch if FED wannabes doing anything remotely constructive.

So Capita will basically move on company specific news, or the mood of mms.

Nofear

Cpi is getting shafted by mms today, it's not following the FTSE, nor the Dow, nor the buy volume. It's just being played

Could be a rough afternoon if US futures are anything to go by.

Can't see the gambling reform bill

Nofear

Think you were spot on earlier.

They're switching the algos like turning a tap on/off.

It's like watching England play football.

Trisor I really don't think dividends are possible until they generate free cashflow.

All I'm saying is that depending on what they use the cash for, a small buyback is similar to dividends because it's just using a different mechanism to return capital to shareholders, and would be welcomed by the market imo.