Member Info for SlickMongoose

What a company.

Doesn't Rusty have about $25m of his own money in the company? That's a lot of money to wipe out in bankruptcy.

JDCBC, I think you're absolutely right about interest rates. DEC paid $59m in interest in the 6 month compared to $33m in the 6 months last year, which is a hefty increase.

Is there any withholding tax on these?

Solid I thought.

The whole market was down this morning. Maybe PETS were expected to do slightly better than the trading update but it all looks fine to me.

LGEN is a more diversified business than PHNX.

Even if the Q2 profit of $2.6m continued that's still a p/e of about 11 which is not crazy. The market is forward looking and Q3 is looking a lot better at the moment. High levels of capex are making the net debt situation look worse than it should, hopefully that capex pays off going forwards.

There you go. "The dividend of £1.45 per share will be paid on 11 September 2023 for shareholders on the register on 4 August 2023, with an ex-dividend date of 3 August 2023."

Tipped in the telegraph today. Would be nice if it could go back down a bit so I can buy more.

Jeffrey, probably to do with the rising £, now at $1.31 vs $1.2 a few months ago.

What happened to the buyback? Another big announcement followed by a tiny 1-day buyback then nothing? I don't mind if they don't do buybacks at all but I really don't understand what they're doing here.

It feels like they announce buybacks more often than they actually buy back shares.

In other companies within the Group.

Olderandwiser, this is about the difference between consolidated accounts and individual company accounts. Dividends are generally paid out of the top company in the Group, not the consolidated group, so that's the company that needs to have sufficient retained earnings to pay them. If you scroll down to the company balance sheet (page 105 on the pdf) the company has £17m of retained earnings. Generally the top company is just a holding company and doesn't trade externally.

No, it's just an accounting adjustment. Share capital and retained earnings are both reserve accounts that sit in the equity section of the balance sheet.

Share premium arises on the issue of shares, and retained earnings arises on profitability. You can only pay dividends from retained earnings, but you can transfer the balance from share premium to retained earnings, which is what they're doing. This allows them to keep paying dividends when retained earnings gets low. This process is always described as a capital reduction which can confuse some people.

Finally, the accounts are here. I can't immediately see any major issues?

I hope not. Who'd want more North Sea assets? The UK is a terrible jurisdiction.

1% revenue growth is pretty poor given inflation at 10%, and most of the profit growth came from interest on the huge cash balance they hold.

If management genuinely believe that LGEN is that undervalued then they should be buying back significant numbers of shares