Intermediate Capital Share Discussion Threads

[pvb] 11/8/2015 14:48

I think we all know about this, speedsgh. It's all over and done with and the dust has settled by now.

[speedsgh] 11/8/2015 14:37

from ICP AGM/special dividend/share consolidation circular which has now been voted through + come into effect...

SHARE CONSOLIDATION
As is common when an amount representing a significant proportion of the market capitalisation of a company is returned to shareholders, the Board recommends that the Special Dividend is combined with the Share Consolidation. The Share
Consolidation is intended, as far as possible, to maintain the comparability of the Company’s share price before and after the Special Dividend. The total amount of the Special Dividend is equivalent to approximately 13.96% of the market capitalisation of the Company (adjusted to take account of the proposed Final Dividend) as at 4 June 2015 (being the latest practicable date prior to the publication of this circular). The effect of the Share Consolidation will be to reduce the number of Shares in issue by approximately the same percentage, with the result that Shareholders will receive six New Ordinary Shares for every seven Existing Ordinary Shares held at the Second Record Date.

It is anticipated, therefore, that the market price of each Share should remain at a broadly similar level following the Special Dividend and the Share Consolidation. Shareholders will still hold the same proportion of the Company’s ordinary share capital as before the Share Consolidation (subject to the treatment of any fractional entitlements). Although the New Ordinary Shares
will have a different nominal value, they will carry equivalent rights under the Company’s Articles of Association to the Existing Ordinary Shares currently in issue. The payment of any fractional amounts arising from the Share Consolidation will be made separately to the relevant Shareholders.

[pvb] 31/7/2015 13:56

And it's currently at a mid price of 582.5p per share...

Mind you, I was somewhat heavily loaded up on these, so from my POV maybe it amounts to a certain amount of 'de-risking'. Only trouble is, what to do with the cash?

[yf23_1] 31/7/2015 12:49

My holding of 1000 is now 857, so 143 sold for £816 div.
I make that 570.6p per share.

[deadly] 31/7/2015 10:22

Santar,
it's an old chestnut. The business profits give rise to excess cash whether due to sales of investments or otherwise and the company is giving you the benefits, as you say, of sharing in those profits, like so many other good companies do via divis or buy-backs.

I personally don't care about receiving dividends, which simply reduce the share price equally, but don't complain if they want to make these, it's swings and roundabouts.

[pvb] 30/7/2015 13:00

Goodness yes! It's all over, dividends, share consolidation.

[blippy2] 30/7/2015 12:38

Has anyone received their divvie yet? I'm still waiting.

[pvb] 28/7/2015 13:14

Anybody have a clue about the tax situation wrt a return of capital?

e.g. My RoC Special dividend comes with a Tax Credit, implying it is taxed as a normal dividend.

[goldthorpe] 28/7/2015 12:54

Does anyone know what annual dividend payment is intended with the new shares?

The FT site:



has done a 7/6 adjustment of the previous dividends and suggests a dividend rate of 27p for 2016.

[santar] 23/7/2015 12:10

deadly - paying dividends is not a pointless exercise. As one of the owners of the company I have the right to and expect a share of the business profits. With the remainder being used to sustainably grow the business and profits over time.

The situation here is complicated by there being a fund management company and an investment company. However the management should have been able to find a way to invest any excess capital to the benefit of ICP and its shareholders.

This enforced buyback is at best break-even for ordinary shareholders. I therefore conclude it has been designed to benefit certain interests. Otherwise it is incompetent management not knowing how to invest the funds. After all, isn't ICP supposed to be in the investment business?

[deadly] 23/7/2015 10:43

Likewise you could say that paying dividends is a "pointless exercise" for any company.
The fact is many investors want to have "cash back" without selling shares.

[jeremy40] 23/7/2015 10:26

But a lot will have to wait for their dividend on Tuesday before "buying back" their 1/7th "lost" shares at 2.6% more at the current price. Not to mention the tax implications. Like you Santar, I doubt the dividend increase, which did not appear after the £100 million share buyback over the last year. So, unless someone can explain otherwise, I agree - a pointless exercise!

[santar] 23/7/2015 08:56

Bought back my "consolidated" shares at 2.3% more than what I got paid for them. Would have been even worse if I wasn't overseas and therefore not a UK taxpayer.

Will the dividend now increase by 1/7th? I think not. Pointless bloody exercise, although I am sure some interests must have benefited from it.

[deadly] 20/7/2015 18:48

Of course: that's what a return of capital is.

[outlooker] 16/7/2015 17:56

So is this Special Dividend any more than an enforced buyback of 1/7 of my holding at today's price? There are shares where I'd like to take money off the table but this wasn't one of them!

[its the oxman] 15/7/2015 08:42

Very positive update. Should be back over 600p if market levels recover.

[pvb] 18/6/2015 11:15

So the thing that counts is, how this will effect your long term IRR on the shares.

[speedsgh] 18/6/2015 10:42

OK, Sledin. Hadn't seen the circular. Thanks for pointing out. I'm certainly not complaining if they want to give us a bit more although, as Stevie Blunder mentions, this is a return of capital with associated share consolidation so the net position post payout of the special dividend should be neutral.

[stevie blunder] 18/6/2015 08:48

Don't forget that there will also be a share consolidation, so you are really only getting your own money back.

[sledin] 17/6/2015 20:22

it's 81.6p.

[speedsgh] 17/6/2015 20:15

from Final Results:
"The Board anticipates updating shareholders on the Group's capital structure plans at the time of its 2016 year end results including, subject to market conditions and gearing levels, ANY POTENTIAL FURTHER CAPITAL RETURN."

[speedsgh] 17/6/2015 20:12

AFAICS...

£300m capital return via special dividend proposed.

380,214,880 shares in issue, according to most recent announcement -

£300m / 380,214,880 shares in issue = 78.90p per share

No of shares in issue may of course change between now + the Record Date (22/7) for the special dividend.

[sledin] 17/6/2015 19:25

It is 81.6p.