The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I have made SMT an increasing part of my portfolio in the past year - now about 20%. I have just read the latest statement - elegantly-written, and presenting a calm view of the world and of SMT's approach, but with the caveat that there will be times when its approach produces losses but that these would not lead it to depart from its approach (at least to any great extent. I particularly like its comment that often the right thing is to do nothing. Well worth a read (particularly if you also have racier investments and follow their chat on here) http://www.lse.co.uk/share-regulatory-news.asp?shareprice=SMT&ArticleCode=fi3r1h8r&ArticleHeadline=Halfyear_Report
I meant to post earlier- a profile of Christen Ager-Hanssen in last Sunday's Telegraph http://www.telegraph.co.uk/business/2017/10/28/norways-former-dotcom-wonder-christen-ager-hanssen-want-next/
Link to full SundayTelegraph article http://www.telegraph.co.uk/business/2017/10/21/poison-pill-stops-presses-boardroom-coup-attempt-johnston-press/?WT.mc_id=tmg_share_tw
A report in today's Sunday Telegraph shows how the Board has effectively removed shareholders' ability to change the board. That's a Board about which the Telegraph says "Since 2013 the board has been paid �6.4m, while the company�s valuation has collapsed from more than �100m to just �15m. Johnston Press declined to comment." So at this rate, they will remove, and accrue to themselves, the entire value of the company in just over the next two years.
The Daily Telegraph reported yesterday that JPR has lost out to TNI to print the Guardian when it switches to tabloid format to save on the cost of running its own under-used Berliner-size printing presses and plants http://www.telegraph.co.uk/business/2017/06/11/guardian-go-tabloid-abandons-berliner-presses-print-deal-trinity/
That's interesting. I hadn't tried a dummy trade before. On HL, with a bid/ask showing as 13.0/15.0, I was able to get a price of 13.59 to buy one share. I'll keep an eye on it.
The link I was trying to give below http://www.holdthefrontpage.co.uk/2017/news/regional-publisher-sells-dailys-office-in-3-6m-deal/
Latest property disposal by JPR is at nearly twice its book value. I wonder whether this is where a lot of value could be released as many of their papers need much smaller premises nowadays? http://www.lse.co.uk/ShareChat.asp?ShareTicker=JPR&share=johnston_press The current spread (over 13%) doesn't make it look woorth getting back in here at the moment though.
I sold out of this a few months ago, but keep my eye on it in case the company actually manages to make a significant useful change of some kind or (and possibly more likely) there's some reason for a sharp drop in price which then looks overdone
Not sure how taking news off websites fits with this other change http://www.holdthefrontpage.co.uk/2017/news/jp-merges-publishing-and-digital-operations-in-management-restructure/
JPR are to stop publishing news on a group of Scottish local newspaper websites and, instead, direct people to Facebook. Presumably giving up hope of raising revenue from digital publishing http://www.holdthefrontpage.co.uk/2017/news/weeklies-remove-web-editorial-content-in-bid-to-drive-traffic-to-facebook/
Report in today's Daily Telegraph http://www.telegraph.co.uk/business/2017/04/24/johnston-press-plans-all-cash-bonuses-bosses-battles-restructure/ "In its annual report, Johnston Press told shareholders it wanted to pay an all-cash bonus for 2017 following years of "relatively modest" payments under its existing share-based long-term incentive plan." - Yes, "relatively modest" because of the share price. Not clear that a cash bonus is going to improve the CEO's performance. What is clear is that there is little expectation of a significant, if any, share price rise
I didn't see much optimism either - I was only commenting that it seemed odd for the report to have not really mentioned local papers. The targets for the share price look very optimistic given the amount JPR has to find in order to be able to continue as a going concern after 2019 (see the other bit I quoted).
From reading the annual report, you wouldn't get the impression that JPR is one of the major publishers of local weekly newspapers (and some "evenings") in the UK; the focus is almost entirely on the national i newspaper and a couple of big regionals - the Scotsman and the Yorkshire Post. The lack of focus on weekly papers could be a part of JPRs problems.
A use summary of the annual report: http://www.holdthefrontpage.co.uk/2017/news/johnston-press-posts-300m-pre-tax-loss-after-asset-write-downs/ The most worrying bit is "On the loan repayment issue, the report says: “The Directors anticipate that the Group will remain in a position to meet its obligations in respect of the bonds, including with regard to the payment of interest, in the period to their maturity. “However, in light of the challenges faced by the industry as a whole, the current trading experience of the Group, and the likely financial position of the Group at the time the bonds are due for repayment in June 2019 there is uncertainty surrounding the Group’s ability to refinance the bonds at par in the debt markets on commercially acceptable terms. “Failure to repay, refinance, satisfy or otherwise retire the bonds at their maturity would give rise to a default under the indenture governing the bonds dated 16 May 2014 and could have a material impact on the Group’s operations and its ability to continue as a going concern"
There's a profile of Crystal Amber in the business section of today's Daily Telegraph http://www.telegraph.co.uk/business/2017/02/19/amber-warning-investor-whose-interest-signals-danger/
There's a profile of Crystal Amber in the business section of today's Daily Telegraph, with a mention of Johnston press towards the end http://www.telegraph.co.uk/business/2017/02/19/amber-warning-investor-whose-interest-signals-danger/
The credit facility which is being halved was "unutilised" according to RNS. The credit test will not take place until December "Amendment to the Super Senior Revolving Credit Facility (the "Facility") Johnston Press stated in its interim report for the 26 weeks ended 2 July 2016 published on 4 August 2016 that it would seek to review the Facility with its lenders to ensure it continues to meet the needs of the business. The Company is pleased to announce that it has agreed changes to certain terms of the Facility with all of the lenders (the "Lenders"). The changes are effective immediately and will be effective until 31 December 2016. The Facility is currently unutilised. Under the terms of the agreement, the total commitments under the Facility will be £12.5 million. In addition, in advance of the September 2016 covenant test, the Lenders have agreed to waive this test and that the next covenant test date will be for the 12 month period ending on 31 December 2016. The Company will now work with the Lenders to agree amendments to the Facility, anticipated to be effective from 2017 onwards, in light of recent developments including the acquisition of the i newspaper and potential future asset disposals."
A positive article in the Business section of today's Sunday Telegraph: http://www.telegraph.co.uk/finance/yourbusiness/10731847/Deputy-Prime-Ministers-brother-changes-fortunes-of-a-struggling-firm.html
"the whole transport sector has been on its knees for a decade" EZJ? http://www.lse.co.uk/ShareChart.asp?sharechart=EZJ&share=easyjet