The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
For what most will perceive as a redundant AGM (insofar as we learnt very little), the net inflows have been decent and SP is up WoW. Worth flagging that big buy yesterday. No smoke without fire- either people are believing the ship has been turned, which didn’t seem the case to me in terms of all the cost cutting measures have not yet materially cut net debt OR there is positive movement on the takeover front. I believe the latter. By remaining in takeover period the LT are unable to buy shares at a basement price. And we know Mr Oliver has the £££ after him and Mr Gleeson got a £22M payout from the IPO. By staying in takeover period it has also been keeping SP depressed which obviously affects liquidity when they have debt and tight covenants. JMO but knowing the business as I do I can’t see them being in takeover period without a realistic chance of it landing. Soon!
Anyway of viewing online?? It’s not available via investormeetcompany?
Anyone know if it’s possible to watch the Agm online & how to get the link please?
AGM next Wednesday. Thoughts on whether we will get an update on the takeover talks?
I largely agree with you Mike12345 but I’m left somewhat confused by the assumption that MMAGs Leadership team advised by Shore would be remaining in the offer period when they know the uncertainty is tanking the SP? Ie what possible rationale is there staying in the offer period unless something was potentially on the table? Also by staying in the offer period it means the directors can’t buy shares at this basement price - which makes no sense? Especially as they know they are righting the ship through the cost savings & moving away from rental.
Agree with your points Josey- why do you think they are staying in offer period? What possible reason could the LT (guided by Shore )have to remain in what most on here believe to be an implausible stasis? Which they know is the main reason for the collapse in confidence? I don’t buy incompetent leadership as a reason. Unless there is a lowball offer on the table which they are waiting for a positive quarter of trading to help bump the offer up? Puzzling times!
It’s crazy! mCap is less than the value of the inventory held end FY23-24 (£7.4M). Will the AGM stop the sp decline?
I very much agree. Why RNS at EOP on a Friday though? What’s the possible rationale?
You ok Rob?
Or too early to tell? 400k bought to 65k sold. Praying this was the nadir.
Also massive opportunity to tap into the vinyl renaissance if they can sort the p&p dilemma.
Agree. Huge arbitrage opportunity, tech in the states is not only far more abundant (obviously) but is much cheaper to buy out there and why I think other buyers (other than just BT) will be sniffing around. Combine that with a network operators ability to network unlock devices in a cost efficient manner and you can see the appeal of MMAG. Just need deep(er) pockets to build the brand out there.
Really positive results, particularly bearing in mind the economic climate. Very happy to see the pragmatic debt management and growth of profit. The proportion of debt that is not tied to inventory is minuscule compared to the revenues and scale of the business. Plus the shift to consumer tech is being handled brilliantly which is setting the business up for the long term future. Well done magpies.
Since 2021 by my calculations the directors have bought over 3.6m shares at a price of £0.21 so I’d like to think they wouldn’t want to sell out for any less than that plus they have grant of options at £0.45 so I’d like to think that plays into any decision making!
What’s going on with the three single share purchases today? Is that a requirement to generate an RNS or something?
That’s natural seasonality for the trade side (Jan is a peak month as people trade in to get rid of old presents and it’s naturally the poorest month of the year) and you are using estimated data (I’m guessing from similarweb or SEMrush). Would query your intentions flagging this.