RE: This is new for me..2 Mar 2022 18:03
I am going to have another go at this because I see no benefit to me as the shareholder with regards to
'The return of funds to the shareholder' on the given day. As you say if you have 100 shares you get £100
However you now only have 75 shares ( as a result of consolidation ) Lets assume that pre / post consolidation SP is £4 )
The reduction of your holding by 25 shares @ £4 is equivalent to the £100 'return of funds to shareholder so you have gained nothing.
Furthermore let's add in the annual divi . Prior to consolidation FY22 would have had 100 shares x 31.5p but now you have 75 shares ( post consol) x 31.5p. And finally . As suggested, by some dyor etc, with that £100 in cash that you have in exchange for the 25 shares you had to give up you could repurchase some more shares . The only problem is the shares have now gone up and you have to pay charges on top . Lose lose?