Connect Share Discussion Threads

[chizgreen68] 27/1/2015 21:35

The share price seems to have fallen off a cliff here, not sure why. Does anyone have a view? Like some, I'm attracted to the divi, but equally would like to understand the price action. Thanks, Chiz

[skinny] 23/1/2015 11:46

Most companies have a 'Financial Calendar' or at least something under 'Investors'.

For most, if you cant't be bothered to go direct to the company site, google it.


In this case if you put "connect group financial calendar" into google, the 1st link returned is - .

[sogoesit] 23/1/2015 10:52

silver tortoise:
if you go to the home page of Investegate, here:

you will find at the bottom right of the page "Forthcoming Events"... you can click on Company Events upto a month ahead.
Reegards

PS: Transport/distribution is a tough business to make money in. However, with one competitor leaving the market, City Link, and fuel prices on the way to halving this will help. Am long-term holder for the yield. Rgds.

[edmundshaw] 16/1/2015 15:06

Far too early days to be disappointed yet silever T, im my view. Early days still in this phase of Connects transformation. Still a great cash cow (with dividend to match), and excellent prospects.

The care side is small and not vry profitable as yet, but both that and education have prospects. Connect has the firepower to buy into new sectors with good potential, and it will only need one or two of these to take off to shift earnings up significantly.

Meanwhile we wait and see to find out how the transport/logistics will progress... could be nicely profitable.

[silver tortoise] 16/1/2015 13:57

Could anyone tell me of a link or site in which you can see when a company has a trading update some time in advance ,I know some report quarterly.Often or not I invest before an update,only to be disappointed afterwards when the timing of my purchase is too early.Hence in the case of Connect.

[edmundshaw] 14/1/2015 15:22

Not all bad - picked up some IRV at 490p. Crazy day...

[fangorn2] 14/1/2015 14:35

I sold out a while back for a decent profit. Been looking to get back in post Tufnell Ri feeding through.

Missed the divi giveaway last week as well..

Like yourself not chasing it though.

Plenty of volatility out there.

[edmundshaw] 14/1/2015 14:31

Same here Fangorn. Just half a minute too slow... :-(

But I am not chasing it - already have plenty of these or would have joined madmix.

[fangorn2] 14/1/2015 14:14

Gutted I missed the 129p odd..went into auction as soon as i logged into my account.

[madmix] 14/1/2015 14:08

Uninspiring trading statement, but looks good value at 134p. Had a few for the 7% yield.

[edmundshaw] 14/1/2015 09:59

It's OK, at this price particularly. But not exactly stunning my socks off...

[skinny] 14/1/2015 07:03

Connect Group PLC, a leading specialist distributor operating in four divisions; News & Media, Books, Education & Care and Parcel Freight, is today issuing its Trading Update covering the19 week period to 10 January 2015.


Total Group revenues decreased 1.5% year on year, with overall performance broadly in line with management expectations.

The performance of each division was as follows;

· Connect News & Media;News revenues decreased by 1.8% and like for like revenues decreased by 2.8% with both newspaper and magazine performance continuing in line with recent run rates. Pass my Parcel was launched as planned and continues to be rolled out to new stores. Media revenues increased through new contract wins by 5.2% with like for like revenues up by 0.4%.

· Connect Books; revenues decreased by 1.2% through increased focus on more profitable contracts as part of the recovery plan. Like for like revenues increased by 1.8% due to the continued strong performance of Wordery partly offset by the ongoing market pressures in the UK and internationally. Recent recovery actions continue to reduce costs and increase margins.

· Connect Education & Care;revenues decreased by 2.0% and like for like revenues decreased by 1.2%. Core revenues were up by only 0.6% as a result of a strong early peak trading period in the prior year. Education and Early Years channels continue to outperform the smaller Care channel and non-core revenues were down broadly in line with recent run rates.

· Connect Parcel Freight;on 19 December 2014, the Group completed the acquisition of Tuffnells Parcels Express, establishing the Parcel Freight division. The division has made a positive start with encouraging trading over the festive period and performance to date is in line with management expectations.


There has been no change in the underlying financial condition of the Group since 12 November 2014 following the publication of the Prospectus in relation to the acquisition of Tuffnells.

The Group will announce its interim results for the six months ending 28 February 2015 on 22 April 2015.

[edmundshaw] 08/1/2015 18:35

Yes, you were right. It went XD today for 6p, and just a slight rise(!) ensued. Somebody goofed all right! I have enough though, adding would have been an overplay...

[skinny] 07/1/2015 17:33

Assuming no bad news, a purchase today would have been almost free money - down 8p at one point this afternoon - I didn't buy btw!!

[edmundshaw] 07/1/2015 17:02

Maybe someone goofed and thought Wednesday was XD day - as it was before the change earlier this year?

[germalene] 07/1/2015 11:06

Ok, thanks

[germalene] 07/1/2015 10:26

Advice please.....
Today is the 7th January, tomorrow, the 8th January CNCT goes ex-dividend paying .06p, which seems a fairly good return on the offer share price (as I type) of 154.75p.
So, would shares purchased today (7th Jan) still attract the dividend?
I ask as I can see no obvious reason for the share price drop today prior to ex-dividend.

[retsius] 05/1/2015 11:06

yes ed. I am looking to buy in before xd.
IMS must surely be encouraging.The deal looks sound and we now have the added bonus of lower fuel costs.

[edmundshaw] 05/1/2015 09:07

Ex div on Thursday.

The key date for me though is the IMS on Wednesday 14th.

[beazer2] 30/12/2014 16:43

Originally I bought this share for income but having purchased at £1.40 the shares rose rapidly to £2 and I decided to take the profit. The shares returned to £1.40 for no good reason so I purchased again, watched them rise to £1.80 before taking up the rights on a 2 for 7 at £1.02 basis giving a new theoretical ex-rights price of around £1.62. The opportunity to buy more in the past couple of weeks at the low £1.50`s when the rump of the rights issue was placed with institutions at £1.58 was impossible to resist and I now have a significant holding in each of the funds which I have invested.

CNCT was originally Smiths News the distribution arm of WH Smith. It was in competition with John Menzies and Surridge Dawson and when Surridge Dawson lost its distribution contract with the main newspaper publishers CNCT and MNZS divided the spoils. However, despite this windfall, Smiths News was in a declining business distributing magazines and newspapers to newsagents. It bought a business delivering periodicals to libraries but again, although profitable, this also was a declining business.

So the management looked at what they had which was a distribution network of lorries and vans delivering to a myriad of small and large outlets. They started Jack`s Beans, delivering fresh coffee daily to newsagents to be dispensed through coffee machines on the counter. Then, this summer, they announced a linkup with Amazon, and this autumn the acquisition of Tuffnells, the Big Green Parcel Machine people, through a rights issue. Tuffnells has a great track record, is very profitable, and it will advance eps from the start and assist the progressive dividend policy of CNCT.

The internet is the way forward but it relies on efficient distribution. CNCT now has the opportunity to create a fully integrated distribution network. The collapse in the oil price and the demise of Citylink can only be beneficial. I am impressed by the way the management have focused this business and I now expect to see a significant uplift over the next 2-3 years. At the current price of £1.56 and with a projected divi of 9p the shares yield 5.8%. This is now a growth story share and should be yielding 4% or less giving an implied initial target price of £2.25.

With reference to Citylink it was only after Rentokil got rid of that millstone round its neck for £1 that I invested in RTO. Ratcatching is big business around the world and RTO have one of the biggest names. I still hold and have an eye on the original target of £1.80 set for the directors as a bonus trigger point. One day I am sure the company will be taken over.

All imo.

[edmundshaw] 28/12/2014 10:26

Hm, Cpnnect as a whole mainly b2b except for the Tuffnells b2c bit. Not sure I see the fit...

[jeff h] 28/12/2014 00:28

Yes Edmund interesting to know why it failed, though Better Capital got it for £1 from former owner Rentokil due to its losses.

Jon Moulton obviously thought he could turn it round and they earmarked £40m for it but seems to have gone.

One thing you dont mention is IT/tracking systems etc.

Perhaps with Connect already having a tie up with Amazon they may get a chunk of the work...Tuffnells mainly b2b though they do have a b2c side.