Member Info for Macminchus

Doing another small top up today.

The price seems to rise on very small trading. I’m expecting the results to be very good. ??

I’m starting to build a small position here where possible. This is no longer an estate agency business but a financial services business with an estate agents. They’ve recently made considerable investments into direct life and pension services and owning 100% of the assets of mortgage gym. MAB1 which currently has a P/E ratio of 51 (677m market cap)with approx 1600 advisers. LSL trading on 11 times earnings (330M Market Cap) with approx 2600 advisers. Ignoring all of the estate agency business, surveyors, new build, and Asset management sides of the business either LSL is fundamentally undervalued or MAB1 is substantially over valued. Interested to see what others views are.

Looks like a good trading update to me, better than expected results

Something i was unaware of, thank you.

This may come across as a silly question but i cant really understand why smt even pays a dividend, it’s so small would it not just be more prudent to keep the funds and invest further?

I'm hoping for a rise but we keep on hearing mixed reviews of what is going on, who knows.

Hopefully it will start to trade again soon.

2019 Results Summary:



· The audited 2019 results published today reflect the additional work carried out by Grant Thornton UK LLP, our internal team and our auditor, Deloitte LLP.



· Total revenue for the year was £4,787.2m (2018: £4,828.3m) driven principally by the total 5.0% increase in used car revenue and a total 6.7% increase in aftersales revenue.



· Adjustments identified as relating to 2019 reflect adjustments to previously unpublished results, and adjustments to 2018 and earlier reflect adjustments to previously published and audited results.



· A total of £25.5m of non-cash adjustments are necessary to correct misstatements in PBT over a number of years.



· Adjustments reduce PBT by £10.9m in 2019 and £7.2m in 2018 with the balance cumulatively decreasing PBT by £7.4m in 2017 and earlier.



· Statutory loss before taxation of £45.5m compared with a profit before taxation of £41.9m in the prior year.



· Despite the impact of the adjustments and as previously indicated, 2019 remains profitable at the underlying PBT level £4.2m (2018: £42.8m).



· Net total non-underlying charges for the year totalled £49.7m (2018: £0.9m) reflecting significant restructuring activity, non-cash impairment charges, gain on property disposals and a provision of £10.4m for potential liabilities arising from the ongoing Financial Conduct Authority (FCA) investigation.



· The investigations identified a cash expenses fraud which led to a loss of £327k in a single division and which accumulated over several years.



· As previously announced, no final dividend for 2019 was recommended.



· Continued strong focus on cash management reduced net debt to £59.5m (2018: £85.9m).

2019 Operational Summary:



· Difficult but necessary decisions made to implement the right dealership portfolio and staffing profiles, which led to site closures and the unfortunate redundancy of a number of our colleagues.



· Decisive restructuring activity commenced continuing into the current financial year to reduce costs to sustainable levels.



2020 Trading and Outlook:



· Temporary closure of the Group's dealerships throughout the initial lockdown had a significant impact on financial performance, with the Group expecting to report a material underlying loss before tax in H1.



· Trading in Q3 was better than expected with underlying PBT significantly ahead of last year.



· Q4 will benefit from the full impact of the Group's restructuring activity although the financial performance for the remainder of the year will inevitably be impacted by the closure of our dealerships under the second lockdown in England which commenced on 5 November 2020, and any further regional restrictions.



· The Group's net debt has improved during the year and was £54.4m at the end of October (£59.5m at end December 2019). The Group has recently agreed revised covenants with its banks an

Currently not invested and now there is a trading halt what ever will be will be so don’t want anyone to say I’m ramping or de ramping. I had been invested over the years, but more recently stopped following the company. Was about to get back in but this trading halt has happened. Every time this has happened when I’ve been in the share there has been a capital raise, however, dont really see why they need it. Could this be the announcement of the preferential bidder? Just thinking it seems a bit early but clearly I could be wrong. Interested to see everyone’s thoughts?

Anyone got level 2 to see how it’s opened? It doesn’t looked like it’s moved to me ?

Wish I knew, only got a small holding in here but I’d expect it to jump once it starts to trade again.

No idea where the price will go but given the fact they announced that they had a massive reduction in trade from the b2b market (which was the main market) the share price has hardly moved. What i like about this is consumers are recognising it at the go to mixer, therefore consumers have purchased in a big way making up for some of the revenue reduction in the b2b market. Expansion in America and around the world. Little overheads, no debt. So what they didn’t make as much money as before due to lock down but they are still cash positive.... sounds like a good buy to me, long term this should do very well.

Completely agreed with the fact that pubs were shut during the period and we’ve still ended up in a better financial position than we started. So many companies made losses we’ve actually made money.

Us market performing well.

Remember their profitability is not all down to sales in the estate agents. Financial services and their survey department is becoming more of an important income stream. Compare the mcap of lsl to MAB1 and this looks really undervalued (or mab1 is overvalued depending on your point of view) .

I just didn’t see tosca as that type of business, have they done it before as far as you’re aware (I have very limited knowledge of them so clearly not saying they couldn’t take it private) . They’re at something like 25 percent of the business so they don’t need to buy much more before that have to offer to purchase the rest of the company.

I’ve only held this a month so doing ok from it. What is everyone’s thoughts on what TOSCA are doing owning so much of the company. I can’t see them taking it private?

This is going to fly once the dividend returns, there is not enough stock on the books of estate agents, surveyors are all backed up with work, and you struggling to speak to mortgage advisers these days.

I'm crossing everything that she does lol. This 1 share thing is just a myth but usually when it happens we do end up with an RNS.