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Does anyone understand these interest rate swaps.

Years ending 2023, 2022.

Finance income Note 6 99,075 53,390

Finance costs Note 6 (69,123) (59,841)

These numbers are high even in relation to borrowings and lease liabilities of about £1000m.

How can we get a handle on what the exceptional profits/losses on the call options usually shown in note 4 are likely to be?

Every year they come up with these and they are usually a big hit.

They often relate to Put/Call options which to me point to the difficulty of buying with long lead times for a world market.

This combined with what I see as strong rises in inventories puts me of this share

The June Y/E accounts seem to be showing significant asset write downs.

With The Baltic Dry index looking to be back to flatlining at the pre 2008 level it seems likely that ships were acquired with an expectation that rates would grow and be volatile. With that expectation gone I will be looking for large write downs in the future. With average charter lengths at 1.5 years there look to be troubled times ahead.

Lloyds Bank: The 2022 results show

Net trading income (19,987) 17,200

Can we take it that the £20bn loss is due to markdown of gilts?
Is this a systematic issue?
The important question is:

Did Silicon Valley Bank fail because of markdown of its gilts or because of loss of confidence in tech loans?

The 2022 results show
Net trading income (19,987) 17,200

Can we take it that the £20bn loss is due to markdown of gilts?
Is this a systematic issue?
The important question is:

Did Silicon Valley Bank fail because of markdown of its gilts or because of loss of confidence in tech loans?

Hello,

I am clutching at straws so I increased my short position yesterday.

Micro Focus estimated the Covid19 impact on revenues at 2%.

This supposed SUSE profit could be questioned.

Attachmate bought the business for $2.2bn in 2010 and Micro Focus sold it for $2.53bn in 2018.

This does not look like a profit to me.

>> Adjusted Net Debt1 of $3,807.5m at 30 April 2019, 2.7 times Adjusted EBITDA, after including the $1,800.0m return to shareholders in May 2019.

Returning cash to shareholders is not in any way related to EBITDA. (as well you know).

Apart from declining revenues MCRO has another problem:

Defined Benefit obligations £261.5m
Pension assets £141.4m
plus Long term pension assets (subject to general creditors) £17m

This looks like ongoing cost of circa £10m p.a. not reflected in the accounts because there are no top up payments to the fund.

The net debt to (adjusted) ebitda ratio is £6600m / £426m = 15.5.

"In some industries, a debt/EBITDA of 10 could be completely normal, while in other industries a ratio of three to four is more appropriate."

For a company with revenues declining by 10% y o y this is an impossible hurdle to jump.

I have this as the best short in London.

The fundamental problem is the declining revenue stream from ageing software.

The trading update November last year was basically as per guidance and I do not expect anything different this year.

That resulted in a loss of £18m from continuing operations.

The trading update in May 2020 reported revenues declining by 11% of which 2% was due to Covid19.

That resulted in a loss from non-exceptionals for the half year of £11m.
The exceptionals included integration costs £109m, redundancy payments £21m, and a massive writedown of goodwill.

I cannot see this share doing anything other than to go down and I will not be closing ahead of the news.

Oh, it looks to because Trump was rude to China today.

This recent fall surprises me.
Any possible causes?
The state of the chart would look to make this a buy today.

Does this mean that Flybe with still cease using Southend Airport in 2020?

What about the Ryanair prospect at Southend?

What are the implications of this deal?

Nothing said about whether Flybe will cease using Southend airport in 2020.

What does this mean for the Ryanair prospects?

This looks a bit chaotic to me.

I am looking at Ocado's customer fulfillment centres and they look rather small. CFC Hatfield seems to be a large box shared with DHL. CFC Andover seems to have delivery bays for about 10 large trucks and little parking space. There does not seem to be the capacity there to take any significant fraction of the 2020 £18bn online grocery market. https://www.google.co.uk/maps/place/Andover,+Hampshire+SP10+5AP/@51.2167889,-1.4517124,351m/data=!3m1!1e3!4m2!3m1!1s0x487406fe566bbf6d:0xab640af7ab80b6d6?hl=en https://www.google.co.uk/maps/@51.7703635,-0.2411724,3a,75y,317.53h,94.41t/data=!3m6!1e1!3m4!1s4oxwFu3hQnN8PdwLEjQptA!2e0!7i13312!8i6656!6m1!1e1?hl=en http://www.igd.com/Research/Shopper-Insight/The-growth-potential-of-online-grocery/