Talktalk Telecom Share Discussion Threads

[anthony81] 22/11/2016 11:00

Talktalk have time,it is not December yet.

[anthony81] 22/11/2016 10:59

One email or one phone call to HMRC may confirm or deny TalkTalk’s alleged Dividend status.

[solarno lopez] 22/11/2016 10:55

A very dangerous precedent if that is what it is because the directors will be liable to shareholders and creditors if the company went bust

[strutt12] 22/11/2016 10:55

I'm happy with 3 years of dividends @ 10% ;-)

[1gw] 22/11/2016 10:55

According to the balance sheet, Talktalk had £48m of "retained earnings and other reserves" at 30th September.

The £50m interim dividend will appear as a 2H liability in the accounts.

So presumably on 14th November when the board approved the interim dividend they knew that they already had sufficient 2H earnings in the bag to be able to pay the dividend out of earnings?

[diku] 22/11/2016 10:54

You mean Talktalk paid illegal divis?..

[anthony81] 22/11/2016 10:50

Setting a precedent
Betfair 'paid £60m illegal dividends'
Talktalk appears to be in an identical situation

[anthony81] 22/11/2016 10:45

What to expect possibly today and the following few days.
Today: another Holding notice
During this week: a Dividend statement.
This has the potential to drive the share even further downward

[anthony81] 22/11/2016 10:37

5 Oct 2016

Betfair 'paid £60m illegal dividends'

The company has paid out as much as £60m of “illegal” dividends over three years.
The “company did not have sufficient distributable reserves”, Betfair has said.
Under company law, dividends can only be paid out of “realised” profits to ensure creditors and the company itself are not drained of cash.


If the Dividend is from cash flow the tax rates change and you will lose the Tax benefits

From 6 April 2016, the notional 10% tax credit on dividends is abolished.
A £5,000 tax free dividend allowance is introduced. Dividends above this level are taxed at 7.5% (basic rate), 32.5% (higher rate), and 38.1% (additional rate

[strutt12] 22/11/2016 10:33

Think anthony81 will be along shortly to answer that. haha

[diku] 22/11/2016 10:29

But all too often have noticed recently when the price has fallen before the going ex divi then it goes up on ex divi day...why the fall though?..

[strutt12] 22/11/2016 09:27

Yes, it will go down another 5.29p on ex dividend Thursday lol

[w1ndjammer] 22/11/2016 09:25

its down on 500k sells doesn`t that tell you something.

WJ.

[salpara111] 22/11/2016 09:21

Having sold last week for a modest loss I am gob smacked to see the share price in freefall.
I think most people agree that the divi will have to be at least cut in half but the bigger question is...what is the long term future for the company?

[mbmiah] 22/11/2016 09:19

Not even dead cat bounce here

[anthony81] 22/11/2016 09:11

The Dividend Picture

"Final dividend expected to be in line with FY16 and broadly covered by operating free cash flow"

Does this make sense to you?

It this Good Practice?

Why not ask a Friend, or your broker?

DO not sit in silence, in disbelief?

Ask the questions to the statement above, understand what is being said

Dividend :a sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves).

[tony773] 22/11/2016 09:09

WOW Anthony 81 you can certainly waffle on !!!!!

do you invest in TALK ???

[w1ndjammer] 22/11/2016 09:01

Talk talk are the cheapest out there

£25 for complete package inc line rental and free mobile simm

show me a cheaper provider

WJ.

[anthony81] 22/11/2016 08:58

What are your reasons for Investing in Talktalk?

Final dividend expected to be in line with FY16 and broadly covered by operating free cash flow

Odey Asset management 0.56% 2016-11-16 short position at the moment

TalkTalk that its full-year earnings will come in at the lower end of its forecast,
EU GDPR is looming

The new regulation will see potential fines increase to four percent of global turnover or €20 million, whichever is higher, meaning TalkTalk would have faced an even more significant amount.

We have £994m of committed credit facilities and as at 30 September 2016 the headroom on these facilities was £162m.

That means talktalk can borrow money up to £1.156 billion pounds

Last Tuesday 16th Nov
Dido Harding, Chief Executive Officer
sold 96,796 Ordinary Shares at a price of £1.90 per

TalkTalk Telecom Group plc (commonly known as TalkTalk Group, trading as TalkTalk) is a company which provides an appallingly poor service


30thSept2016

Opening Debt of £679,000,000
Closing debt of £847,000,000 an increase of £168,000,000


Profit /loss after Taxtion(£m) 21 Million. This is the retained earnings.
£21,000,000
-£50,000,000. You can’t count dividends as business costs when you work out your Corporation Tax.

The 20 analysts offering 12 month price targets for Talktalk Telecom Group PLC have a median target of 230.00, with a high estimate of 300.00 and a low estimate of 97.00. The median estimate represents a 27.78% increase from the last price of 180.00.

[anthony81] 22/11/2016 08:49

TALKNewsArticle
Redburn sees TalkTalk ditching dividends

Mon, 21st Nov 2016 15:18

(ShareCast News) - Talk Talk´s strategy of raising prices on a shrinking customer base was a poor proposition, even more so with growth in the overall market flat, analysts at Redburn said.

Together with increased competition from the likes of Virgin Project Lightning and Vodafone, the prospects for the company were particularly grim, Nick Delfas said in a research report sent to clients.

Indeed, Delfas expected the company´s debt covenants to come increasingly into focus.

Potential merger partners were also likely to wait for signs of greater sustainability in Talk Talk´s subscriber base, robbing the shares' valuation of the support provided by the chance of a potential tie-up.

"As the business shrinks and debt rises, debt covenants will come into greater focus," he added.

Nonetheless, "the necessity to combine with either O2 or Three is clear, but unfortunately for TalkTalk equity and bondholders, it is increasingly apparent that merger partners can wait this dance out for a little longer," Delfas said.

The Redburn analyst cut his recommendation on the shares from 'neutral' to 'sell' while slashing his estimate of 'fair value' from 150p to 100p.

Delfas also no longer expected Talk Talk to pay a dividend in fiscal years 2018 and 2019.

[anthony81] 22/11/2016 08:48

this is from a dividend expert ????

The Companies Act 1985 section 263 states 'a company shall not make a distribution except out of profits available for the purpose'.
A company’s profits available for distribution are its accumulated, realised profits

Does it seem to you that it is good practice to take Dividends from cash flow?

[tony773] 22/11/2016 08:11

this is from a dividend expert ????

TalkTalk continue to sink after their interims on Tuesday where they announced an unchanged dividend of 5.29p and they stated that the final dividend will be at least in in line with last years (10.58p) for a total of 15.87p on the year. They also stated that year end net debt to EDITDA would be significantly lower at the year end demonstrating their strong operational cash flows. The fall in the price, which is continuing today has taken them close to the top of the Optimizer for a yield of over 10%.