Member Info for Skindle

Correction, £5.45 per share, my apologies.

The Findel Education sale price was equivalent to 10.3 times EBITDA. If you apply the same multiple to the Studio 2018/19 EBITDA, that values us at £471,658,000, or £5.71 per share !

Morning fellow shareholders. I was delighted to read about the disposal of Findel Education yesterday morning and felt confident that our share price would rise significantly despite our very average half year results. No improvement in revenue was very disappointing. I was hoping for a sufficient increase in revenue to offset the PPI exceptional cost. I think the company will now struggle to meet expectation at the financial year end. So where do we go from here ? I fear a move back down towards 200 pence in the short term. Meanwhile, over at Sports Direct, a different story. Mr Ashley, like him or loathe him, his half year results were quite frankly exceptional. Maybe our board should be working more closely with our largest shareholder as they quite clearly know how to extract maximum profit from their vast and varied product range.

The news we have all been waiting for. The sale of the business for an excellent price of £48m after costs, well done to the board for taking this action. We all knew it was the right action to take but actually securing the sale was certainly not an easy task. Revenue for the first half was disappointing but adjusted PBT was up due to improved overall efficiency but hampered by the additional PPI payment of £7.9m. I am delighted and hugely relieved that Education is now being sold. This could lead to a significant re rating.

This is confirmation that Sports Direct will not be making another offer for STU.L until at least the 1st March 2020.

4. Consequences of a failed takeover offer

The City Code provides that, if a takeover offer fails or lapses (e.g. because the required acceptances or approvals are not obtained), the bidder will not be able to make another takeover offer for the same company for at least 12 months (subject to certain exceptions).

This is the most significant pre result move in a long while, maybe there is something more in the half year announcement than just the figures.

They are Ejackson, but to be fair they justified their decision to delay the release of their results because of the general election. All shareholders of STU.L are hoping for news that Findel Education is to be sold or that SPD have finally decided to pay market value for our business but the reality is neither of these will happen. We will enjoy an increase in revenue but there will be an impact on our profit before tax because of the late PPI claims that flooded in during August. Let’s hope this is enough to lift us back to our undisturbed share price.

Finally, after months of the share price trickling lower, a positive move up on news that Schroder has increased its shareholding, albeit by only 0.294 per cent. Maybe the half year results are going to be better than I had anticipated.

Many thanks Arsenal17, good luck to you too and all shareholders.

Couldn’t agree more f15jcm. On this pivotal day of reflection I decided to sell my shares and join Grayling in the camp of gloom as I can see no end to this decline. See below.
https://www.washingtonpost.com/business/even-niceactivist-hedge-funds-arent-miracle-workers/2019/12/10/e0ad571e-1b4f-11ea-977a-15a6710ed6da_story.html

By comparison the share price is cheap when you reflect that in August 18 the share price briefly topped 1100 pence.

That is a fact Grayling, not a opinion as you erroneously summised.

You have not posted positively for a while which would suggest you have gone short.

I enjoy positive comment about Rolls Royce but your comments leave me cold. I now realise that Arsenal 17 has the measure of you.

To say - It may be a couple of years before things start to change if at all and and this could dip sub £6.

Is your opinion, which suggests a strong short position.

Good luck in your investments but an honest position would be appreciated.

Thechancers, RR has its problems which is why the share price is at a low point in the year. By comparison the share price is cheap when you reflect that in August 18 the share price briefly topped 1100 pence. What happens after the election on Friday is anyone’s guess but in simple terms, if the pound strengthens significantly against the dollar as a result of the election expect the share price to drop, or go up if the pound weakens.

Agreed Arsenal17 but the company has according to this article offered to set up a manufacturing plant as part of a deal so they clearly believe it to be possible.

This article was written in February 2019. Does anyone know if this possibility is still on the table ?
https://www.bloomberg.com/news/articles/2019-02-27/rolls-royce-said-to-offer-china-engine-plant-to-win-deal-on-jet

Agreed Uncle_Doug, there has to come a point that despite the troublesome Trent 1000 Ten, RR becomes a strong buy again. Well done for topping up, I really didn’t think we would re visit these low levels again. Good to read that f15jcm is also feeling positive. Post election I am confident of some strong gains.

The total cost to solve the Trent 1000 TEN issue will amount to £2.4b over six years yet the loss in market cap value since 1st August this year alone amounts to nearly £3b and closer to £4b if you look back to April 19 when this issue originally raised its ugly head.

Disappointingly the share price is ignoring good news and instead looking for any negative news to drop further. I like the ‘kitchen sinking’ description of our recent trading update. Maybe that was the moment the company chose to disclose the full impact that this engine issue has had on the business. Does that draw a line under the decline that began as far back as August 2018 ?

https://www.rrpowersystems.com/news/press-releases/press-detail/rolls_royce_signs_agreements_for_delivery_of_more_than_500_mtu_engines_during_chinese_import_conference_ciie

Thank you again for that news Dinoken, Rolls Royce themselves only chose to share it with us today, you are well ahead of the information curve.

At least our biggest investor has given a reason for delaying its half year results release :-

SPORTS DIRECT INTERNATIONAL PLC

("Sports Direct" or the "Company")



Date of Half Year Results

So as not to clash with the UK General Election, Sports Direct will now announce its half year results on Monday 16th December 2019.

Ends.