Member Info for WiganWarriors

It’s being reported that Rishi will extend the SDLT reduction, in line with ongoing extension of other initiatives such as furlough. Builders should get a boost.

Hmmm, I’m familiar with “Barmaids” ... not sure what “w****s” represents ...

Shouldn’t be an issue for most developers like Wimps. Perhaps a quid pro quo, and UK GOV will extend / remove GCT ???????

Personally, I would like to Wimps closing three or four consecutive days, on a daily high before I have any confidence of a run up to the mid 160 - 170 ish.

Hi Housey, depends where you were looking of course. However, I would guess it was the highest / lowest price from the opening auction crossing algo.

US futures down, so pulling our Markets down. Remember, in times like this it’s the Market that sets the SP, not fundamentals.

Well, seems at the mo the Market is nervous and tracking news flow closely. If the US decides that reporting from Tech and Banks this week is disappointing, and sells off I am sure we will follow. However, if the Markets can hold it together over the next few days and we get good news flow re vaccination etc., then maybe we can push on. If you are happy with your positions, then best not to look every ten minutes. Or, if you can see forward a couple of months then add on any weakness. Of course, IMHO.

HI Fred
Hopefully this year can't be worse than last year. HNY to yourself.

As you say, even with OoH sales pretty much decimated on each lockdown, Vimto still holds up well. Also, NICL cash generation is impressive as you would expect with such a high return on capital. This is definitely a share to hold for the long term. Not sure you will get in at £8 though.

I could be wrong, but I reckon we should build on this price as the company has demonstrated its resilience in difficult times, and hopefully we will emerge from lockdown in the coming months enabling many families to get out and about. There has been a lot of discretionally cash not spent on meals, trips, theme parks etc, last year. The underlying strength of VImto brand, coupled with a a strong recovery in the OoH market should see a good 2021.

If you listen to the recording of the call, they are specifically asked to confirm that they are continuing with the current dividend policy; 7.5% of net assets, or minimum of £250m which ever is the greater. They confirmed that they are.

Kristy, re the dividend. Wimps have previously indicated a return to paying standard dividends. Today’s call confirmed the same. Wimps have not announced any change in dividend policy, apart from the special, which will be reviewed at half year 2021 for 2022 payments.

So, I would suggest to that you can reasonably plan for a min similar to last year. Two standard dividends of ~ 3.8p.

I am sure the French have taken this opportunity to close the border, just as an example of what we can look forward to, if no deal. Concentrate the minds of those who voted for Brexit, when they can’t get any fresh fruit over Xmas. Also, our Scottish fishermen can’t get their fresh catch over to the continent. Unlikely that a man of Boris’s caliber will sort this out to our advantage.

Let’s not forget that many “British “ fleets sold off their quota’s to European fleets, took the money and retired. So even a no deal on fisheries will still enable a large European owned fleet to operate in “British “ waters. Also, our remaking fleet sells most of what we catch to the European’s, and that will be difficult in a no deal environment. Most of the cod and haddock that we eat we buy in from Iceland and Greenland anyway. Currently lorries from Scotland pick up catches from multiple ports and travel to France to sell, but in future every pick up will require separate paperwork for each pickup, and separate clearance for each pickup at customs making it uneconomical.

In a word “yes”.

IMHO. There won't be a "no deal" announcement on Sunday night. Either a deal will be agreed, or an agreement to take a break, and allow a period of reflection. This may run into next year, and the current arrangement will be extended for a short while. Neither Boris or the EU want to risk being seen as the responsible party for potential chaos, with the risk of unknown consequences caused by brinkmanship on 31st December.

Wimps sell off looks to have been triggered by a series of large sell orders (450K each). Unusual to see sell orders of the same size. Also, further cancellation of the early mornings (around 0815 hrs) buy orders, just added further pressure later in the afternoon.

When shares fall this quickly, lots of stop losses get triggered again just adding to the damage. So, I guess that spooked the market, but at least the auction UT set Mondays start a little higher than todays closing (pre auction). Of course why the large sales in the first place ?

Perhaps we should ask Joe Anderson ...

Hi Fred, hope all is well.
Interesting time for NICL. I have increased my holding over the last couple of months as I did anticipate a gradual recovery, however seems there is some consistent selling. I've decided to treat this as a genuine seller who wants to reduce, which is fine and in small low volume companies like NICL the s can have an exaggerated impact. We will see.

I was encouraged by the ability to generate cash during the Q2 lockdown, just shows how strong the Vimto brand is. Q3 shows further cash generation equal to the 28p dividend paid, which is a really resilient performance.

It is interesting to note the family have nominated second family member as a non exec. I guess that's ok as the family own ~35% of the company. Also, interesting to note that same director has pledged a high percentage of his personal share holding to a bank, in return for a loan. Maybe he's buying a splendid new pad. Or maybe he will use that £5 - 6 M he has borrowed to increase his stake in the company.

I look forward to the provisional results early January, and I suspect the market will respond accordingly. We will see.

Well, Wimps dividend policy is tied to the net asset value with a minimum of £250M for the year, paid in two equal instalments. We know specials which paid out surplus cash once all other expenses taken care of are out until 2022.

The net asset value may increase a little at year end, so previous of 3.8 may increase a little. I would guess that would work out around 4p or maybe 4.5p max. Don’t forget they have stated they are targeting 2022 - 2023 for optimal operating profit, return on capital and 19,000 units per year.

Ben. I suspect it’s the general market sentiment with respect to further lockdowns, and imminent Brexit negotiations outcome which is signaling a “risk off” mentality. Given that backdrop, the builders aren’t doing too badly today.

I reckon Friday’s update from BKG will be key for Wimps, as they’re exposed to the central London market. Wimps is the only major builder that runs both central London and regional business units these days, and as we know central London has been a slow market for a few years now.

If BKG can reassure that CL is going well then that should help Wimps, as the market is stressing over Wimps CL exposure compared to the other major builders.

Well, its interesting to note NR has stopped just shy of 25%. This leaves him with a short hop (25%) to be able to control any special resolutions which may get tabled. So he is effectively in control. Maybe he is planning to prepare to take VLX private. I guess that should be in the region of £2.00 - £2.20 given the average share price over the last couple of weeks. Or likely at a higher price in 2021.