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Investor discussions surrounding British American Tobacco (BAT) on ADVFN highlighted a mix of anticipation and concern regarding the company's financial outlook and stock performance. A significant point of discussion was the forthcoming special dividend, with several investors expressing skepticism about its feasibility in light of ongoing financial obligations from the Canadian tobacco litigation. Laurence Llewelyn Binliner noted that "it would make sense to use the proceeds of the upcoming ITC hotels demerger to pay down debt," reflecting a desire to see the company leverage its assets effectively to enhance shareholder returns.
Financial highlights from the discussion indicated a cautious optimism among investors, with sentiments leaning towards viewing BAT's dividend yield as attractive amidst market fluctuations. Investors like Tuftymatt suggested that remaining invested makes strategic sense due to the "juicy yield" and potential for stock price recovery. Concerns around net debt levels persist, with investors like Laurence Llewelyn Binliner airing cautious optimism about moving towards a more favorable leverage ratio. Ultimately, investors are weighing the impacts of BAT's strategic maneuvers—like the ITC demerger—against lingering liabilities, creating a nuanced outlook on the company’s stock performance moving forward.
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British American Tobacco (BAT) has engaged in a series of share buybacks as part of its capital management strategy approved by shareholders at the Annual General Meeting on April 24, 2024. Throughout December 2024, BAT executed multiple transactions to repurchase a total of 490,350 ordinary shares at varying prices, with the highest purchase price recorded at 2,998.00 pence per share on December 16. The volume-weighted average purchase prices ranged between approximately 2,887.58 pence and 2,986.65 pence over the reported transactions.
Following the completion of these buybacks, BAT plans to cancel the shares, which will reduce the total number of ordinary shares outstanding to approximately 2.21 billion. This strategic move highlights the company's commitment to returning value to shareholders amidst an ongoing transformation in its product portfolio and market landscape. The recent repurchases signal confidence in the company's financial health and future growth potential as it continues to navigate the evolving tobacco and nicotine market.
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58.88p in the bag, ex div probably come off a bit more. |
Yeah if we go through another wave like we saw recently then so be it. |
No luck with breaking 3000 pence before XD tomorrow, but see how the share price rebuilds going forward, 25% of the ITC hotels business is a very nice chunk of the de-merger cash/shares to consider for use in 2025 and most likely de-leveraging with buybacks for 26/27.. |
In which case Canada is more like 5-6% of BATs business, surprised it is that high. The loss of profit and cash flow will make quite a dent coupled with lower contribution from trimming the India investment. Taking the shine off BAT outlook which was already dulled by a disappointing debt report blamed on adverse exchange rate movements. Does that reduce the scope for buybacks? Thaddeus needs some good news. |
ITC Ltd on Tuesday said that the company has fixed January 1, 2025, as the effective date for demerger of its hotel business after receiving an approval order from the National Company Law Tribunal (NCLT). ITC share price gained over a percent to ₹475.00 apiece on the BSE after the announcement. |
In line with IFRS 10 (Consolidated Financial Statements), ITCAN is consolidated in the Group's results. For ease of reference and to assist the users of this interim announcement, in the six months ended June 2024, ITCAN's contribution to the financial performance of the Group was: |
I studied the decision when the industry indicated it was acceptable and I agree with gb conclusion. The liability is ringfenced to the Canadian subsidiaries, which will pay a lump sum with local cash where something like CAD$1B was ordered to be lodged by the courts back in 2019, followed by quite a high annual levy on future profits. The consequence to BAT is therefore the impairment of its Canadian subsidiary asset and the reduction in future contributions to group profit. I can't find it now but at the time I remember seeing an estimate that Canada represents 1-2% of BAT business. |
Note nelly the rest of the sentence: |
No i don't think so. Read between the lines.... |
#nellynell, if you read the text for the initial ruling, the penalty is ring fenced and to be paid for from future earnings from ITCAN, the parent BATS is not liable, but this offer has yet to be agreed AFAIR, along with the liability split % with the other majors involved.. |
You can kiss a special dividend goodbye whilst they have the Canadian judgement to pay for lol |
#nellynell, when the ITC hotels demerger goes through, the proceeds coming back in here will make a good dent in the debt and there is plenty of room for a special too.. :o) |
It would make sense to use the proceeds of the upcoming itc hotels demerger to pay down debt. 2025 already has a buyback in place and the Dividend is already very generous. |
I know its the "standard" way of companies explaining debt in terms of EBITDA leverage but for me adjusted EBITDA and adjusted net debt expressed as a metric is often a way of avoiding saying debt has gone up. |
Trading statement - 11/12/2024 |
FY-2023 net debt -USD34BN with leverage down to 2.6X |
Is net debt falling? |
3000 pence seems to be a stubborn level to cross, we have been on it, above it or bouncing off it since September, see if we can get over for XD this time round, we know the upstream dividends and further buybacks are robust, the share capital is reducing slowly leaving the outstanding shares in issue to be valued at a higher level.. |
Yeah it's Thursday and can we go into it having reached 3060?? |
It's always on Thu |
I thought it was 19th??? |
[edit] next dividend in the pot 18th, XD 19th for another 58.88 pence.. :o) |
Is this going to do exactly what it did last time just before xd? Groundhog day? Fall like a sack of sh1t just before xd or will be see 3000 as a new support? Only santa and his elves know. |
Blimey these ex dividend dates do come fast not that I'm complaining. |
Type | Ordinary Share |
Share ISIN | GB0002875804 |
Sector | Cigarettes |
Bid Price | 2,883.00 |
Offer Price | 2,885.00 |
Open | 2,889.00 |
Shares Traded | 586,421 |
Last Trade | 12:35:25 |
Low - High | 2,876.00 - 2,893.00 |
Turnover | 27.72B |
Profit | -14.37B |
EPS - Basic | -6.4870 |
PE Ratio | -4.44 |
Market Cap | 63.67B |
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