Avesco Share Discussion Threads

[williemanjaro] 16/1/2014 07:51

and what was that 100k at 2.35 about---market didn't blink either.

[deanowls] 16/1/2014 03:55

Is the price being held to get the transaction through for the Israelis?

[salonie] 15/1/2014 23:09

Hopefully we will see a spike in the share price before then! With a bit of luck!

[sledin] 15/1/2014 19:25

Judging by similar return of capital in other companies, AVS will drop by 110p at 8am 24th Jan.

[mathewawood] 15/1/2014 18:35

But when does AVS go ex-dividend i.e share price collapses to 113p based on todays price? I'm pretty sure its sometime before the Record Date of 23rd Jan.

[deanowls] 15/1/2014 16:36

Half yer money back and your chicks for free.....

[quepassa] 15/1/2014 15:05

May I politely interject and make an important clarification.

There are TWO DIFFERENT dividends in the offing.


1. The chunky Disney SPECIAL dividend of 110p which is also available in Capital Option format.


2. The regular CORPORATE Final dividend of 4p which is separate to the Disney dividend


In the understandable excitement of the 110p Special dividend, the regular Final dividend has been somewhat overlooked.

However, it does need to be noted that Avesco have increased the final dividend by a third from 3p to 4p which speaks volumes to management's laudable commitment to grow investor returns and to increase regular dividends.


-The Special 110p dividend/capital return is payable on ( or around) 31st January. The Record Date for entitlement to this is 5pm 23rd. January.

-The regular 4p corporate Final dividend is paid in the new 14/15 Tax Year on 7th. April for registered shareholders at 14th. March.

Overall, Shareholders have not 110p but 114p of promised dividends to look forward to.

ALL IMO. DYOR.

QP

[williemanjaro] 15/1/2014 14:33

Here-The proposed dividend is expected to be paid on 7 April 2014 to shareholders on the register at the close of business on 14 March2014.

[mathewawood] 15/1/2014 13:59

Any one know the ex-div date. (Dont want to give myself a heart attack). The record date on the rns is 23rd jan does that mean the ex-div is next monday 20th jan?

[williemanjaro] 15/1/2014 13:42

Quepassa is that your trade at 2.35 ^¿•)

[spob] 14/1/2014 16:38

Opted for capital option in my isa

On past form with Barclays, should get the cash quicker

[williemanjaro] 09/1/2014 08:48

Quepassa -VERY much appreciated and thank you for taking the time ^¿•

[quepassa] 09/1/2014 08:26

Hi Willie,

Not an accountant but just some observations.

You're right the Income option is pretty self-explanatory and means that with this option you can choose to take the pay-out in the form of a share dividend. This will be subject to Income Tax at varying rates.

As far as the Capital Option is concerned, Avesco have been very helpful to investors in structuring the chunky pay-out such that you can also choose instead to take it as a Capital Option.

This basically means that the pay-out under the Capital Option will be assessed for Capital Gains Tax rather than Income Tax.

However, it's almost impossible to answer your first question without knowing your income and total capital gains for the year . But that's private to you.

UK taxpayers have a CAPITAL GAINS allowance of £10,900 for the 13/14 tax year which is FREE of any capital gains tax. Amounts over and above this are taxed at 18% to a current maximum of 28% depending on your income tax threshold levels.

If your total capital gains for 13/14 including any Avesco capital pay-out are £10,900 or less ( being all realised gains minus any realised losses, and brought forward losses ), then you shouldn't need to pay any further tax by electing the capital option.

Share dividends are taxable for income tax purposes. The following link explains how dividends are taxed. Tax on dividends can be anything between 0% for a basic rate tax payer, or 22.5% for higher rate tax payers and even up to 27.5% for income over £150k.



So you need to work out which is better for you.

You can also take part Capital Option and part Income Option.

Hope this helps a little and there is plenty of free tax help on-line by googling.

It generally never does any harm in my view, as a starting point, perhaps to make full use of one's annual tax free CGT allowance which this year is £10,900.


As mentioned, I am not an accountant or tax specialist, so do double-check for yourself but hope this isn't too far off the mark and helps a little.



ALL IMO. DYOR.
QP

[williemanjaro] 08/1/2014 20:04

Income option -that can be understood--- "Capital " option ?

[williemanjaro] 08/1/2014 17:22

Now----I have looked at page 37 of the prospectus---but whilst everyones tax situation is different----let me say that my holding here is not held within any form of tax wrapper.

The two options are still creating indecision within my grey cells!


The options available for each share held are:

Option 1: 1 B share which will be redeemed for 110 pence (CAPITAL OPTION),

Or,

Option 2: 1 C share which will entitle holder to receive a dividend for 110 pence (INCOME OPTION) default.

Could I ask, if i may... which preference shareholders are opting for here with any reasoning which could assist in my decision making.

Its curious because my investments have rarely carried any form of dividend and then BANG a special Dividend comes along-!

[quepassa] 08/1/2014 12:51

New Edison Research report on Avesco just released, headed " Time of Change".

Some extracts:-

-It will also buy back a 29% stake from its major shareholder, which will materially enhance NAV and EPS

-Adjusting for the 110p payout, the shares yield a prospective 4.8% and stand at a 39% discount to pro forma NAV, which is underpinned by high-quality rental assets.

-Valuation: Material discount to NAV

-Assuming the payout and buyback go ahead the adjusted share price is at a 39% discount to pro forma NAV, or 30% below our FY14e NAV of 166p per share.




Very good, positive and informative research in my view.

You can get a copy by signing up for free at Edison Research.



ALL IMO. DYOR.

QP

[quepassa] 03/1/2014 10:16

Are you sure??

I thought the 20th was the cut-off date for voting at the General Meeting.

And that the 23rd was the cut-off date for B/C Elections.

ALL IMO. DYOR

QP



ps.

herewith extract from 23/12 RNS:-

Expected timetable of principal events

Event Expected time/date
2013

Date of posting of the Circular 27 December

2014

Latest time and date for receipt of 11.00 a.m. on 20 January
Forms of Proxy and CREST Proxy Instructions
for the General Meeting
General Meeting 11.00 a.m. on 22 January
Election Deadline: latest time and 1.00 p.m. on 23 January
date for receipt of Forms of Election
from certificated Avesco shareholders
or TTE Instructions from CREST holders
in relation to the Return of Cash
Record Date for determining entitlement 5.00 p.m. on 23 January
to B Shares and/or C Shares
B Shares and C Shares issued 24 January
Redemption of B Shares issued pursuant 24 January
to the Capital Option
C Share Dividend becomes payable on 24 January
C Shares issued pursuant to the Income
Option and these C Shares automatically
reclassify as Deferred Shares
Despatch of cheques, payment by BACS On or around 31 January
to mandated UK Sterling bank accounts
or, if held in CREST, CREST accounts
credited in respect of proceeds under
the Income Option
Despatch of cheques or, if held in On or around 31 January
CREST, CREST accounts credited in respect
of proceeds under the Capital Option
Expected date of completion of the 5 February
Share Buy-back

[wjccghcc] 03/1/2014 09:59

Elections must be made by 11am on 20th January.

[quepassa] 03/1/2014 09:30

Experiencing some difficulties with a certain broker about the Timetable for choosing B/C options under the special dividend. This broker seems to be labouring under the misapprehension that shareholders cannot choose until after the 23rd January which is clearly incorrect. You have to choose before that date.

Given that Elections for B or C options have to be made within a fairly short time-frame of 23rd. January, I personally will be making sure beforehand with all my various brokers that my personal choices have been fully registered and acknowledged in good time.


ALL IMO. DYOR.

QP

[royaloak] 31/12/2013 15:56

I think it is use if you have any spare cash to buy as I indicated above, and then at some time in the future you have the opportunity of selling at a loss if you have gains to offset.

Of course now that AIM shares can go in an ISA, the need to offset gains could diminish as I will just add the maximum amount to ISA's each year by selling stocks outside ISA's as appropriate.

Already this year my CGT computations for HMRC are already so much easier!

[boystown] 31/12/2013 10:55

Mine are held in a SIPP and I have no CGT issues so I presume it won't make any material difference what I go for?

[royaloak] 30/12/2013 23:48

No tax concessions on your dividend in an ISA or SIPP.

If you want capital losses at some time best to add or buy in an ordinary share account, take the dividend in cash and sell at a big loss at some time in the future when you need to offset any gains you have. However if the dividend you receive will put you into the higher rate of tax you will need to be careful to prevent that happening.

[salonie] 30/12/2013 23:09

Certainly take a bit of reading!

At least we have a month to work it out!

75% of my shares are in SIPPS or ISAs so I would assume that a dividend will be protected from tax.

[williemanjaro] 30/12/2013 16:36

thanks Mouse---will investigate.