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Https://www.youtube.com/watch?v=0JftLyIaW1Q

Yu mentioned / discussed at various points. He does actually say he has taken profits several times. (13:05). Thinks the brokers' forecasts are low and it is undervalued, and it is very well positioned for the future. Main discussion at 5:40.

Yep. Looks like this morning is the day of dividends going back in. Mine too. Kept £10k cash to spend. Can always do drip sales each month of the dividend shares to give a monthly income, and hopefully at a profit on the dividend itself!

Looking back on the chart at the large dips, they tend to bottom and then gently trend upwards around 4 weeks before the results and main trading updates. As July is normally towards the month end, that's around now (ish), so I'm guessing the low of 1600p is it.

Hopefully get an RNS to say the capital reduction is approved. I only think they'll do something modest for starters, say a 20p special dividend (this will lift last year's dividend to 60p, which ties in with the 1/3 payout ratio). Can't see them dishing out the full £12m. Not sure about a buyback - low liquidity makes this difficult, but also means they won't need to spend much to significantly move the price, which may be their objective?

And as Yu shares get cheaper, the price of ice cream goes viral!

https://www.youtube.com/shorts/qBMSv9A5ouU

This saga has definitely created a split in opinions. I was a shareholder (sold out about 18 months back), but been watching for possible re-investment. Arguments on both sides are equally valid conclusions to reach as the truth of what is going on is shrouded, hence, 'opinions' are somewhat arbitrary.

Current trading, especially on Solutions is strong. But, I can see why there are views on management's commitment, and even ability to drive this company to a much larger scale. There seems to be a lack of any serious buyer who wants the business for the business itself - the suitors appear opportunistic, who would likely leverage up on debt - hence, like private equity, are looking for a cheap price to make the numbers work. And this price will be below management's target / expectations, based on other peers in the sector.

Discussion of these points here

https://www.youtube.com/live/tztBnV3zHn4?si=EctNFRId1zhm-N29&t=3020

Sparks - yes, it is disappointing no update. The market at least needs reassurance that trading is ok. Even a brief 'in line with current expectations' is better than silence. There is reasonable comment with the full year RNS. The key word is 'momentum', which implies continued upwards trend. The AGM presentation, though lifted from March, re-affirms that position. The excuse given for lack of investor engagement previously was being too busy growing the business with a heads down graft. It is likely to be similar, with the new Shell deal and large increase in the meter engineer numbers (all need training and a new van to fit out etc).

As you say though, a long time till next news. SP likely to drift lower. Auto stop losses might get triggered again and make matters worse!

Https://www.voxmarkets.co.uk/gci/podcasts/growth-company-investor-is-back--082b887/

Conversation between David Thornton (Growth Company Investor) and John Hughman (Vox, ex Investors Chronicle). Some interesting comments on Nomads and lack of coverage on smaller companies.

NG - Thanks for the posts. That presentation is the AGM presentation referred to in the last RNS. Yu have done this for a good few years. The slides are lifted from the March results presentation, so no real new info.

Interesting to know they are still pitching to institutions. This slightly baffles me, as there is no float for them to buy into, and can only surmise they are building up to a placing of some of BKs shares at some point. Otherwise, why all this effort? But can't see it happening until the price reflects a fuller value of the company.

IR said to me the rough plan was to follow last year's outline - which I took to mean a TU 2-3 weeks after the AGM. If new bookings have taken off, then like last year, they perhaps need some time to crunch the numbers to issue new guidance.

Also, of note, is how they are flagging the capital reduction on the calendar. Suggests they may do something quite promptly once granted - an extra dividend, or a buyback. And the better the current year is going, the more they will be willing to pay out!

A bit of a clanger in the RNS. It should of course said 37p per share, not 37p in total!

IR website updated calendar and AGM page. No mention of a TU.

Actually, just gone through all the options, PR is in fact left with a sizable holding of nearly 300,00 in shares and vested options not yet exercised, (per RNS) plus 187,000 options still to vest (RNS 20.12.22), so just under 500,000 all in. No doubt future options will be awarded too. Therefore, the definitive conclusion is there is no cause for concern.

I too am intrigued what they will do with the share premium account. If it were my decision, about half as a special dividend (35p a share) and perhaps a smallish buyback later on after H1 results if the SP is still sub £20 (with the aim of lifting the SP, rather than boosting eps).

IPC - some did vest in April 2023, and a similar amount vests in April 2024 from the same award. See directors report section. Also, as said, note 24 of the AR lists all the options outstanding. BK has 567,062 to take, once vested there is a wide window in which to claim them. They are not forced to sell them once they're exercised, they could keep them to sell at a later date.

Not sure about the tax treatment. Has someone mentioned CGT? They might in fact be taxed as income at the exercise date? I often see directors selling half the option shares on getting them to cover 50% income tax.

From the Directors' Report -

Of the share options outstanding to executive directors at 31 December 2023:

76,612 for Bobby Kalar and 57,463 for Paul Rawson vested in April 2023 following achievement of certain performance targets.

Such share options are at an exercise price of par value of the shares, being £0.005.

326,617 for Bobby Kalar and 244,463 for Paul Rawson are conditional on achieving certain performance targets linked to the Group’s

share price or profitability. Such performance share options vest to the extent such targets are met and are at an exercise price of the

par value, being £0.005.

7,894 for each of Bobby Kalar and Paul Rawson options are granted under the Group’s 2022 SAYE scheme, at an exercise price of £2.28

per share.

No non-executive director holds share options in the Company.

During the period, the executive directors did not exercise any share options, and were not granted any new options.

Sparks - on balance, I think you're right. But nonetheless, will create general uncertainty / anxiety until any TU. IR said to me they are roughly intending to follow last year's pattern - ie a TU is expected 2 - 3 weeks after the AGM. This was not a 100% guarantee there will be a TU, just a generalisation.

Now we are 3 months into the Shell deal, if going well, then a TU shortly and revised broker numbers would be most welcome. Last May's update was quite material, following a detailed management review (per RNS). Hoping for something similar.

Note 24 in the Annual Report details outstanding share options. Looks like they have a lot of discretion as to when to exercise them. Hence, it does raise questions as why now - why not wait until the dividend is locked in, and after the next TU, which if good lifts the SP to a better cash out price. Also, if there is institutional pressure / demand for shares, why not place the shares with an institution and sell them that way?

Also, how / why has the CFO sold 84,000 at £17.64? Who took those and why at a different price. Presumably a pre-arranged off-market deal. Was that to an institution, placed at a premium? If so, then looks to be a promising sign? Likewise, the company buying at £17.00 could be construed as a good deal for the company - using its share buyback to keep the shares in issue the same, good for eps and buying at a cheap price.

Basically, not enough information in the RNS for the market to see what actually just happened! If there was a placing at a premium, then the SP should have lifted to £17.64. Was that the plan? All gone wrong and all really quite weird to me.

Anyways, if all is still going well, then current SP is a bargain, and still trading with the right to the dividend.

Yes, 37p is quite a chunk. Any one thinking of buying or selling, should consider the dividend being in the share price - ie, knock it off!

SP probably now in one of its usual consolidation phases, range trading in a wide £3 - £4 band (£16 to £20). Will need a good TU with uplifted full year forecasts to push us to new highs.

Https://www.youtube.com/live/OIpn67AXadQ?si=er7Z6N7ygrJK0lk6&t=3188

I have been in contact with IR.

There will be no trading update with the AGM. The IR website calendar has been corrected and now reads "AGM and AGM Results Statement" (ie results of the voting).

The next officially expected trading update is therefore after H1, normally in late July. However, they may update the market, similar to last year, with an RNS at the end of May / early June.

Year end TU out - they are on top of their numbers and have given guidance on profits. Works out at adj eps of around 115p, and there will be a total of 83p in dividends. So, at say 1800p a share, PER is just under 16, and the payout ratio is 72%.

Just food for thought / comparisons.

Reminder -

"The Board therefore recommends the payment of a final dividend of 37p per share, being c.£6.2m payable on 20 June 2024. The shares will go ex-dividend on 30 May 2024 and the record date is 31 May 2024."

37p is quite a chunk. Any one thinking of buying or selling, should consider the dividend being in the share price - ie, knock it off!

Technical correction - group reserves are £34.855m, but the 'company' reserves' are only £22.318m. It is the underlying company which pays dividends etc, and which needs enough reserves to cover the dividends! So distributable reserves will be roughly £34m once the share premium account is cancelled, and £28m once the interim dividend is paid. See page 80 of the Annual Report.

Sorry Dave. No can do! Reserves are £34,855,000 plus share premium of £11,909,000, so say £47m. They are clearly hinting at distributing some (or all) of the share premium total. I think we could cautiously pencil in about half of it, which is around 35p per share. Not forgetting, that if 2024 eps is at the 300p mark (NG points out it could be higher), then at 3 times coverage, there's another £1 in dividends for 2024. That then leaves a good £2 per share spare, for then another special dividend.

Basically, going forwards, they can afford annual dividends of at least £2 per share (normal and special), so we are on a dividend yield of roughly 10%. (Assuming no acquisitions)

Website now shows the AGM date on their calendar, and indicates a 'statement' - presumably a TU.

Https://youtu.be/JAMsDqLW7sk?si=nY6GI_iupC6LMaqc&t=3259

More coverage. Not all fully accurate, but still it all helps the cause!