Member Info for surprised

CVS Group posted full-year results yesterday showing revenues up 9.8 per cent to £608.3 million and a 49.7 per cent increase in profit before tax to £53.9 million in the year to June 30.

Yesterday CVSG stock rose 101p, or 6.7 per cent, to £16.10, valuing the company at about £1.1 billion, and the final dividend was raised to 7.5p per share from 7p.

Fairman said CVS would support the regulator’s review and that it was “impossible to speculate on what the outcome may be”, but he was confident it would not hinder the company’s acquisitions in the meantime.

CVS has made three recent acquisitions and the regulator was sent briefing papers prior to the announcement of its review. “That is a very clear signal that we can continue to acquire in the UK,” Fairman said.

City analysts said the rerating in CVS’s share price had been “overdone” and believe that the sell-off has gone too far. Davy, the broker, said there appeared to be “little risk of price controls being introduced”.

https://www.thetimes.co.uk/article/cvs-group-defends-profit-margins-in-face-of-competition-inquiry-xr2l6b63x

PUTIN WIELDS ENERGY WEAPON AGAIN: Cutting off diesel exports is a scalpel targeting the jugular of the global economy

Russia is one of the world's biggest exporters of the fuel, so this could hurt. Prices already spiking

Russia has barred the export of diesel and petrol as crude oil prices rise towards $100 a barrel, marking a significant escalation that will raise fears Moscow is weaponising oil supplies in retaliation for western sanctions.

Diesel prices in Europe jumped after the announcement on Thursday, rising almost 5 per cent to above $1,010 a tonne. Crude oil prices also reversed earlier losses, with Brent — the international benchmark — rising 1 per cent to $94 a barrel.

https://www.ft.com/content/5f07bec3-c219-4223-a4ab-7597c1a87e26

https://twitter.com/OilSheppard/status/1704877157858615612

Crude 90.4

brent 94

uk gas 99

The epl was not due to be part of the review, however, it has been raised by many parties in the submissions I understand so as net zero policies are starting to be unwound at last it may well see some adjustment or likely some 'off set' to counter it's effect so politicians can still say the epl is in place but companies can 'off set part' or some of the effect......we can but hope for further sensible decisions over coming weeks.

Https://twitter.com/JavierBlas/status/1704819170368504180

OIL MARKET: Russia temporarily limits exports of gasoline and diesel |

Nort Sea Tax review

The review will consider the future of the permanent regime including the Petroleum Revenue Tax, Ring Fence Corporation Tax and Supplementary Charge, as well as different tax reliefs and allowances available within the regime.

The epl is not currently part of the review, submissions from the industry are due by 11/09/23

crude $8

Brent $93

UK gas 93.5

Https://twitter.com/surprised_trade/status/1704740468876059006

Profit before tax increased 49.7%, final dividend of 7.5p (+7%)

Https://twitter.com/surprised_trade/status/1704742222220910815

Increased Economic value ("EcV") of £523.2m (347p per share)

· Improved commercial new business growth of £6.3m delivered

· IFRS profit before tax of £16.0m, and increase of CSM of £54.2m in the period

· 3% increase to the interim dividend to 8.36p per share;

Cash balances at Group holding companies increased over the period to £127.5m (31 December 2022: £108.1m), providing substantial resources to fund future acquisitions.

The interim dividend of 8.36p per share is expected to be paid on 10 November 2023. The ordinary shares will be quoted ex-dividend on the London Stock Exchange as of 28 September 2023

We retain a strong and resilient solvency position significantly above our normal operating range and substantial cash balances at the holding company level to fund future acquisitions. We remain optimistic about our ability to participate in future M&A and continue to be highly confident in our ability to finance and execute such transactions on attractive terms for both vendors and our shareholders."

;-)

More than £500 million was wiped off the stock market value of a big veterinary company after regulators initiated a wide-ranging review of the sector.

The Times understands that the CMA assessed the announcement and deemed it not to be market-moving, largely because it had not yet made findings or used its formal powers. Yet shares in CVS Group fell by a third.

https://www.thetimes.co.uk/article/competition-review-leaves-veterinary-group-looking-poorly-bz67tj5nx

Malcy's blog

''Serica is in blooming health and would have been much higher if it had not been for the hit taken by the EPL. The cash generation is very solid and enables the company to announce a 9p dividend which at current run rate will be higher going forward. Tailwind was a stroke of genius, the oil price looks set fair and so add another high yielder to the list.''

Three analysts report issued this morning, all have a very positive view and all surprised at sp drop today :-)

With respect Banburyboy I cut an investment if the case changes, (ie JSE a monthor two ago)

I'm not a bitter (ex) holder of SQZ and I have witnessesd a few bashers of the Tailwinfd deal over recent months, despite the deal now proving to be a real cash asset for SQZ .......basing investment on emotions or holding a grudge is unhealthy.

Lol just reporting facts :-)

Cash generation allows dividend increase ;-)

Increase in profit after tax :-)

Potential to generate over £400m of UK tax off sets :-)

Https://twitter.com/surprised_trade/status/1704064907337945551

added to #SQZ 243p.... drop of 9% on interims, markets can be irrational at times

NewkOTB

Exactly, excellent points, the market is currently acting irrationally based on excellent figures and an excellent outlook and these moments provide opportunity for those able to take advantage of a drop in sp.

If the investment case had changed for the worse as investors we have to remain objective and not base decisions on sentiment or emotion, however, SQZ figures are very good, highly cash generative, no debt etc etc and all metrics for a good investment case with growth, profits, free cash flow and rising dividends are ticked imo ;-)

i

Looking forward...

Daily production guidance adjusted from 40-47k to 40-45k, no issue at all

Tailwind was only owned for 3 months of the reported period in that short period of time Tailwind assets contributed £100m revenue & £24.9m profit before tax just for the period ended 30 June 2023.

If the acquisition occurred on 1 January 2023, Tailwind assets would've contributed £195.7 million of revenue and £61.5 million of profit before tax

So a full year looking forward with Tailwind figures will provide a large uplift in revenue profit etc. also gas prices expected to rise over coming weeks providing further uplift.

markets are irrational at times ;-)