Airea Share Discussion Threads

[battlebus2] 15/9/2016 13:35

With £3mm cash no worries imv.

[multibagger] 15/9/2016 13:00

Very reassuring and prompt reply ....

" Thankyou for the interest shown in our company. You can rest assured that we monitor our distributable reserves very closely, and they are more than sufficient to support the dividend payment. As well as being a key focus for us, our auditors and legal advisors also take a keen interest in this matter."

[multibagger] 15/9/2016 08:47

Hi Oregano,

Relevant excerpt from Carclo trading and dividend update 31.08.2016


....."Subsequent to the EU Referendum result on 23 June 2016, corporate bond yields have decreased materially in the UK and, as this yield is used to discount the Group's pension liability under IAS 19 "Employee Benefits", if the corporate bond yield remains at its current low level then this will result in a significant increase in the Group's pension deficit as at 30 September 2016. This likely increased IAS 19 pension deficit would have the effect of extinguishing the Company's available distributable reserves, in which case the Company will not be able to pay the final dividend of 1.95 pence per share, declared on 7 June 2016, on 7 October 2016 to those members that were on the register at 26 August 2016. Whilst the Board is disappointed that the final dividend is now unlikely to be capable of being paid due to these legal and accounting constraints, it intends to resume the Company's progressive dividend policy once legal and accounting circumstances allow...."

I have raised this issue with AIEA (Rylance and Salt) via an email earlier today and shall feedback if I get a reply.

[oregano] 15/9/2016 08:39

the deficit was larger last year and AIEA paid a divi. cash is higher now as is P&L account so i would be amazed if it was an issue.

[multibagger] 15/9/2016 08:12

Has anyone read the article in Shares 08 Sep 2016 regarding the dividend drama at Carclo ? Apparently, Carclo are not able to pay the proposed dividend due to pension deficit due to some procedural issue.

Is this an issue for us here given the pension deficit ?

[oregano] 13/9/2016 15:12

FWIW i don't think 7% is bad for this size of company and you can often deal near the other side if you are willing to go against the price direction.

[wipo1] 13/9/2016 13:00

It's a real pity the spread is horrendous

[battlebus2] 13/9/2016 11:06

Looks like some are taking their profits this morning, another chance for those wanting to join the party....

[multibagger] 12/9/2016 13:07

This share looks like its well poised to grow over the next few years...and I have taken some shares this morning...with book value being circa 34p, I was not averse to paying a decent premium to get the shares.

Boring business but likely to be great cash generator / a great investment...just the way I like it.

Good luck all :)

[red army] 12/9/2016 12:30

I WOULD BE HAPPY WITH 40P

[battlebus2] 12/9/2016 10:34

Good to hear and see bamboo, 45p is somewhere near value without taking the £3mm cash into the equation, i've set a conservative initial target of 40p..

[bamboo2] 12/9/2016 10:31

Hi bb, EOD close above 32.25 targets 45.525. This looks like a High and Tight Flag. Watching closely, taken small position. Cheers

[battlebus2] 12/9/2016 10:25

Continuing to rise which is all the better given a down day on the markets, should see 40p in time imv....

[battlebus2] 09/9/2016 15:38

Yes slowly ticking back up, gives other P,I 's a chance to get onboard.

[oregano] 09/9/2016 15:19

a couple of shakeouts yesterday and it rallied, it appears to be doing the same.

the management are looking pretty smart here, did that tender offer at 12p to clear out smaller shareholders, buying shares sub 20p whilst keeping restructuring newsflow relatively quiet. renegotiating and reducing pension deficits when all other deficits are getting larger (quite unbelievable they managed that).

Now they are letting out that vacated office they are valuing it as an investment property, £2.7m additional on the balance sheet. If you remove the cash and the investment property, this is trading on a PE of 4.3x historic earnings and it will grow at 30% this year. double that mutiple would still not be expensive which gets us to 45p.

[wipo1] 09/9/2016 14:40

Yes you would have to be in long term due to the spread, I'm not chasing, but good luck holders

[rhomboid] 09/9/2016 11:46

Actually I've just topped up as liquidity is so rare , now back in the bottom drawer until the dividend arrives.

[battlebus2] 09/9/2016 11:19

Indeed rhomboid, likewise its a long term hold for me, not many stocks look as undervalued on the market as these. Also put them into my progressive dividend portfolio.

[rhomboid] 09/9/2016 11:09

Given how illiquid it is I see no way I'd want to trade it, I'm holding as part of my long term income portfolio, at current price single digit PE with great yield, net cash and trading very well, why go elsewhere?

[battlebus2] 09/9/2016 10:56

Profit taking to the fore this morning and why not...still believe theres another 50% plus to come here..dyor etc.

[battlebus2] 08/9/2016 16:44

Nice 50% rise today, another 50% tomorrow ;))

[isaready] 08/9/2016 16:06

does anyone have the same problem. If I look at a thread, new thread where I have not posted and I click recent, it crashes. I need to enter a post then click recent.

[battlebus2] 08/9/2016 13:47

At 30p the progressive divi is 5%, not to shabby. Well done to those in at 20p or less with 7/8%...nice.

[battlebus2] 08/9/2016 13:05

Moving up again after a few profit takers, long way to go here to a realistic valuation imv.