Member Info for Rumpel

Terry - can’t speak for the detail of the refinancing and do look forward to Asp’s future hedging post. However, “General corporate purposes” - my take on this is that this is a catch all description but not necessarily the main purpose. For example, say existing debt (illustrative figures only, not meant to bear any relation to what has happened) is 98m. New debt is 100m so the loan agreement has to state what the 100m will be used for so will be expressed to repay existing debt (and will detail the actual debt instrument to be repaid) and then “general corporate purposes” to mop up the balance. And what that can include is very wide - ie anything a business may want to do. If the lender specifically wants to prohibit it for being used for specific reasons (eg acquisitions) then that will be captured elsewhere in the document but if the new loan does not provide much surplus cash, then would be no point having those other protections (to the lender) built in.

Hope I have understood the purpose of your original comment.

Last comment didn’t age well! Ryan’s departure could well be just a case of moving on having been passed over for the CEO role (assuming he wanted it).

Never been a noisy board…guess it’ll be quiet until the H1 trading update in mid April and hopefully the company news (positive on sales, margins and cash generation) will give investors some cheer!

Worth mentioning that some ISAs are flexible so you can withdraw and re-deposit during the tax year upto a net total of the £20k max allowance whereas some would count the re-deposit as being new money. Hopefully, all the answers have helped and the OP feels much more knowledgeable.

Big…are you saying you save more tax on interest in a cash ISA rather than sheltering dividends and capital gains in a S&S ISA? Guess it all depends on how much you have and whether the PSA, dividend allowance and CGT allowance are sufficient for how you have split your savings / investments.

From JohnHenry on the HEX board:

“ 3littlebirds the 350k was IG Spreadbet crossing @ MID.

350k of spreadbet trades where bought or sold throughout the day

If you ever see a trade placed between 17: 05. 17:10 its Spredbets throughout the day not a delayed trade”

Got no idea if this is accurate but thought I would throw it into the discussion given the 1707 timestamp quoted. Guess FF03 may be able to give a definitive answer.

Thank you to Fleccy and others for the recent discussion on LEOs etc. It’s good to read from technically informed posters about topics relevant to an investment whether it is in telecoms or other sectors (for the avoidance of doubt, said discussions need to be on the share chat of a relevant company!)

Happy to be informed by someone who has researched it, but have assumed most companies that issue shares for these type of schemes do so by issuing new shares rather than buying in the market. I guess some companies are more prolific (generous?) in the staff share schemes so the materiality on the overall issued shares can vary from company to company whether they are undertaking buybacks or not.

Less lines to read between! I take it as reassuring. Let’s see what the new CEO brings.

Denziiil - on the PHNX aboard around 12 / 13 Oct was an exchange about short term money market funds between Trek and Meconopsis. May be of interest if you’re holding significant cash amounts. I’ve not got much cash so can’t speak from own experience but Trek and Meco are both great contributors to the share chats.

Shearclass - thanks for your analysis on the sales growth. As you can tell, I only looked at the headline figure - my comment may have been a misdirected throwaway to one of my pet peeves when businesses talk about great sales growth when I was brought up on on the maxim of sales are vanity, profit is sanity, cash is reality. Of course, full analysis requires looking at not only more than just one line in any set of accounts but the trend over time and the notes! I think we're both on the same page that the future from Treatt should be positive.

You've probably googled it by now but off the top of my head, no special for Argentina.

Thanks Trotsky. Reckon we best leave it there before others on the board ask us to move on! Am sure anyone who is looking at this will be seeking their own professional input to make sure they are getting advice based on current rules.

Trotsky “ You could agree with your beneficiaries that they would bear the cost up to the value of the gift in the event that you require the funds (you could probably even draw up a legal contract to that effect) but beware the 7-year PET rules”. Am not an expert and not googled it but would a legal contract make this a gift with reservations and therefore keep it subject to IHT? Of course, it could be legal up until the point when you need to enforce it but on death, it may somehow have been a document that never existed!

Trotsky - thank you for your input. In my initial thoughts, i hadn’t considered smaller inherited pots may encourage ‘youngsters’ to make more of their own contribution but will this match greater drawdown of pots in drawdown and be net positive for AUM and L&G?

Re: annuity - I had reached the same conclusion as you in that buying an annuity to deplete a pension pot to divert what would be a 40% tax charge into something that provides a benefit would be pointless as any joint annuity will likely have a spouse as the survivor and therefore wouldn’t be liable to IHT anyway - and, as you say, annuities all come to an end on death unlike the pension pot.

No doubt the next few days and weeks will have the pension industry coming up with ideas though I believe the details of how this new tax rule will apply are still to be determined so no firm answers anytime soon on how best to mitigate it.

Potentially. If your pension pot is going to be taxed at 40%, then that’s 40% that could be better spent on an annuity. However, if you’re married, then no 40% would be payable. Also, will people now spend pots and AUM will reduce. May even deter some people saving for a pension? Or, play the long game, stay alive, wait for the next Tory govt and hope that they change the rules back to something more favourable.

Interesting update - some growth (7% growth is not amazing when I daresay inflation in some of their markets should have helped contribute to that) but I liked the cost discipline which suggests the benefits of the move are starting to kick in. The ‘jam’ bit of the sales team and future projects from their cashflow will hopefully deliver and if we can see acceleration of sales (obviously maintaining cost discipline), then I agree that this share could start to pick up. Fingers crossed!

Thank you. Nomlungu and yourself beat me to it. I’ve seen others use that site to get behind paywalls - very useful for lots of articles across the various UK press paywalls. Don’t know how well it works on others but no doubt a few more people will be saving the link for future use!

I can hear the collective groans after you all thought the Fleccy / DanielH re VOD / LLOY conversation was done and dusted but having caught up on the last week's messages, would add a thought for Fleccy.

My understanding of the Fleccy family position is that you still have the current year ISA allowances available? On the basis that my view it is best to fill up ISA allowance as soon as possible (perhaps more so if you think Rachel won’t be able to resist playing around with them to our disadvantage), have you considered selling some of your VOD to crystallise a loss to then report it to HMRC – think you can then carry forward 4 years which seems to dovetail with your timeframe. You can then place the cash proceeds into a current year ISA and buy the VOD shares back and any dividends plus future gains as VOD marches onwards and upwards to are all tax free. Downside, if VOD goes lower, losses in the ISA can’t be offset though you may still hold some in your GIA depending on how your numbers work. Appreciate you’ll have the spread and dealing costs to cover – never know, time it right, you may even make a profit on the transactions. Just look at Exil’s predictions!

I’m not an accountant / tax person so DYOR etc.

Brave is also good on cutting down on adverts - they may be required to keep certain sites free at point of use but can also make some sites unusable.