Six and a half years12 Aug 2019 22:55
Between 01/07/12 and 31/12/18 according to my reading of the accounts, shareholders have received £332 million in dividends and contributed £340m + £250m = £590 million via two rights issues.
During that time the company has declared tax payable via the income statement, of £33 million on reported actual profits of £167 million and tax that could have been payable of £111 million on underlying profits of £626 million - so it appears to effectively claim that circa 82% of its profits over the period were obliterated by unfortunate matters.
Six and a half years ago borrowings were £95 million (gross) and at 31/12/18 they were £639 million - the current asset ratio has been reasonably consistent throughout however.
Some time in 2014 I believe the company acquired May Gurney paying £38 million cash and the bulk in shares -being approximately 17 million shares at what ever the sp was back then (circa £14 each ??)... (messed my numbers up a bit this may be out a tad???)
On 02/06/15 the company did a 5 for 7 rights issue at £8.58 raising the £340 million mentioned earlier - the share price seemed to drop from £14 to £12 via a dip to £9.30 ish in the following year.
On 05/12/18 the company raised the other £250 million via a 33 for 50 rights issue at £4.09 the TERP is given in the rights issue prospectus as £7.52 approximately. The reason for this rights issue is also given in the prospectus - i didnt understand it other than taking it as meaning - financial difficulty - need cash now - Libor did spike around the time so the interest rate risk outlook may have seemed quite pressing??
*** Comment ***
Circa 162 million shares exist now.
The proceeds from the last rights issue "went somewhere" and presumably "did something".
Is the company still a basket case and why did previous shareholders like it enough to pay £14 a share and contribute to those rights issues?
I think there could still be circa £50m - £100m damage in transit, but my research was rather weak on that front so not sure?
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