Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
… and what looks like a profit warning from GRID. Bailed GRID on the RNS today. The UK will I suppose sort itself out eventually.
"Thought u said "out as of now"...?"
Errr .... is this afternoon the same as this morning? I have zero shares now ... seriously a shame .. I like the business idea ... and annoys me that these problems are down to UK government dithering.
But money is money ... I don't like holding shares without a return.
Sell first ask questions later ... I bought a few more this morning on the back of HEIT but with no dividend in this market ... I'll take a small loss now rather than a bigger loss later ... and buy back on good news if/when it happens.
As close to a profit warning as one can be .. only a few in here .. out as of now.
Nice dig up on BSIF .. looks like old news though ... AJ Bell are pretty useless in my view ... I left and moved over to Interactive Investor in 2021 ... saved me £1000 a year in AJ Bell fees for a better on line system that didn't crash as frequently as AJ Bells plus and this was the big irritation ... getting money out of AJ Bell was impossible where I had to stop trading for a week to satisfy cleared fund criteria. Useless.
“ 51.76%? A majority shareholder” … No .. refers to Economic interest. DGI9 is a 48% shareholder.
As I wrote below, when the £20 million deferred payment lands in the bank account, expect another few pence rise.
I’m expecting a 50p a share return with Arqiva IPO, up to 20p a share from performance targets from sold assets, but not banking on it, and whatever cash is left over from asset sales having paid off debt and management fees.
We will see.
Your so called “managers” in the current market on average have around a 40-65% chance of beating their benchmarks and is why the sector is in decline … the managers in my view, would do better trading their benchmarks and not bothering with stock picking from the benchmarks…. While the advantage for folk like us, is picking up assets below NAV and hoping for a NAV sale of assets.
Outside of the above, with the time taken to find a good manager … might just as well take Buffet’s advice and pick an index on leverage.
On the plus side, £20 million should be landing in the DGI9 bank account next week adding a couple of pence to the DGI9 shareprice.
If Arqiva pays a dividend? Carefully chosen words … Arqiva doesn’t pay a dividend but rather shifts operating profits into reserves, via subsidiaries and as far as I can gather has always done so. I can see why you would plumb for a restructure but DGI9 are presumably correct in their response - again carefully worded. The question that should have been asked, is why Arqiva operating profits are historically moved to reserves, how those reserve assets are held, and how DGI9 can/could unlock those profits to pay DGI9 shareholders.
As I wrote below, I suspect DGI9 thought it could unlock those profits, then found out to shareholder costs that it couldn’t - hence the cash flow problem for the DGI9 company. Why at this point is immaterial but equally explains why Arqiva as an asset will take longer to realise.
That realisation, will probably be an IPO leading to your restructure. The dancing around wording is not a good look and my half glass empty scenario.
... and I picked up on exactly the same phrasiology from the reports. Nothing "pedantic" about it ... it's good detective work and attention to (mis) detail.
Good luck with your request duncyboy - the half glass full account is that DGI9 hoped to be able to access cash flows when buying Arqiva and subsequently found out that it could not. The alternative half glass empty account in respect of DGI9 reporting is probably best left unwritten until the assets are sold off. But I have pointed out the half glass empty interpretation to DGI9 as of a couple of weeks ago, but not my problem since I did not buy in until December 2023.
US gas prices are recovering from 30 year lows, the UK's BESS switching mechanism is in disarray, higher interest rates .... perceptions of "woke" feeding into renewables .... not a lot going for this share save the dividend, that is too tempting to turn down for me - so I have built up a comfortable position this past year.
GLA
On reflection, I'm thinking the Arqiva buy came up and it was just too good an offer to refuse. The Arqiva deal bust DGI9 in terms of cash flow going forwards - true - but the intrinsic value here is too good to miss IMO and now with Verne Global sold off I'm with Old Bloke in his valuations.
“ there must be some value in the masts positioning etc ‘ Well yes … these are all listed in Arqiva Global annual reports. Let them rust …. to get access to the reserves.
Broadcasting will give Arqiva ripe revenues for the next 10 years and more. Old Bloke wasn’t aware of the assets locked up in reserves …. when I chatted to him a couple of weeks ago … and the market still doesn’t understand as far as I can gather than the £163 million VLN bought a 50% economic interest in Arqiva shareholder loans, that themselves are for want of a better phrase secured on the assets tied to subsidiary reserves.
There is £3.6 billion of historical operating profits locked up in Arqiva reserves but none of this appears on balance sheets because Arqiva is a private company.
As I stated below DB … so correct. Bear in mind Arqiva pulled it’s IPO in 2017, and sold off £2 bn of assets in 2019 or so to Cellnet to pay off shareholder loans etc.
Arqiva makes its money from broadcasting on decline but is growing its IoT business.
I’m very rusty on broadcasting, but I use broadcast to save IP bandwidth at home, while broadcast frequencies are relatively low hence large rooftop ariels from memory so I’m not sure if these frequencies will be able to switch over to streaming on hand held devices … someone more up to speed can fill in whether feasible … but either way I think broadcasting will stay up to 2040 at leadt.
Arqiva Limited June 2023 results:
"Dividends and transfers to reserves
The Directors’ of the Company have not recommended a dividend in the year (2022: nil).
The profit for the year of £342.0m (2022: profit of £246.8m) was transferred to reserves."
Retained earnings tied to equity in Arqiva Limited:
Retained earnings £3,180.8 Million.
for which an IOU as a shareholder loan note is issued to equity holders that DGI9 has around 50% of.
There are no distributions of cash from Arqiva to DGI9. At best, one can think that DGI9 thought it could change the historical flow of revenues within Arqiva but even if so, while DGI9 doesn’t pay off at least the VLN interest cash flows to DGI9 are zero.
Realising value in Arqiva means an IPO or restructure of the business organisation as far as I can see … andvto grab at the value means working out how the reserves are held in Arqiva limited, that are tied to equity.
The challenge lies with unlocking value in Arqiva.
So NAV 84p a share 70% haircut for selling costs as per Verne Global minus RCF gives me 50p a share …. Works for me.