Chesnara Share Discussion Threads

[patdavey] 28/6/2018 10:34

A brief look at the long-term share price chart above suggests normal within-range movement.

[solarno lopez] 28/6/2018 10:21

Any known reason for the steady decline in the share price ?

[eggbaconandbubble] 25/5/2018 18:08

Try Roddy Watt on #07714 770 493.

He's their PR consultant

Good luck!

[joe say] 25/5/2018 08:19

One month later have still not received a hard copy of the Annual Report despite requesting (Yes I know you can download but I prefer working with the hard copy version)

Not good

[eggbaconandbubble] 16/5/2018 15:24

At 380p I shall be topping up!

[sogoesit] 13/4/2018 13:10

Easy, give an open market instruction to a broker or type in a poor limit order.

[eggbaconandbubble] 13/4/2018 12:47

Strange trades at 08.14 this morning. How does that happen?

[speedsgh] 12/4/2018 08:32

@jonwig - Thanks for your thoughts. Generally sleep easy with my CSN investment which has served me incredibly well over the years. Their low-key, 'reassuringly dull', conservative approach suits me down to the ground.

[jonwig] 12/4/2018 08:17

XD 13.07p in case anyone's unaware! (Payday 23 May.)

@ speeds - I should have said a 10% discount is what I'd expect, so we're up with events now.

[jonwig] 11/4/2018 15:30

@ speeds - probably not significantly tighter, as closed-book takeovers have tended to be around that 21% figure, although the measure 'embedded/economic value' seems to be superseded and I'm not up to speed on recent changes. Note that Phoenix doesn't report such values anymore for some reason.

Where I think CSN has an edge which deserves tighter than the 21% discount is its defensive quality and the fact that the Swedish arm (not closed book) is now generating surplus cash. And how much should we value excellent management?

[speedsgh] 11/4/2018 12:20

@jonwig - re your post 1420...

"A key metric for me is 'economic value'. Per share it's now 483p against 467p at half time. A 21% discount looks wrong!"

What do you view as a more reasonable discount to current 'economic value'?

[sogoesit] 11/4/2018 11:31

Now caught-up with PHNX on one year performance but way ahead on 2 year+ past performance.

[speedsgh] 11/4/2018 11:11

Looks like it has broken out above resistance. Next leg up on LT chart. Blue sky above.

[sogoesit] 09/4/2018 15:57

Thanks al101uk for that.

Deane says "John are you being a little bit tight?"!

Lol... Exactly!

Personally, I think we've spent long enough around the 400p mark so a bit of capital gain in lieu of incremental income would also do me fine.

[jonwig] 03/4/2018 12:04

Thanks for picking that up. "Reassuringly dull".

[al101uk] 03/4/2018 11:04

Simply impressive:

[eggbaconandbubble] 29/3/2018 12:50

zzzzzzzzzzzzzz! ;-)

[chairman20] 29/3/2018 12:05

Look at the discount in the share price
as a significant buffer in case of any
substantial investment markets decline.

Nothing in the stock market is ever safe
but CSN is an investment that allows me
to sleep easy! And I like the management
style - not doing anything incautious.

[sogoesit] 29/3/2018 08:44

Yes, that’s the figure that surprised me in relation to the share price
Over a one year period the share price does not appear to have recognised the value enhancement from the latest acquisition.
Furthermore, with discount rates on the increase this impact goes unrecognised as well.
Maybe it’s a difficult company to understand and/or its seen as relatively risky while it has an objective to keep acquiring... but what do I know ;-)?

[jonwig] 29/3/2018 08:03

A key metric for me is 'economic value'. Per share it's now 483p against 467p at half time. A 21% discount looks wrong!

[speedsgh] 29/3/2018 07:45

A final dividend of 13.07p per share in respect of the year ended 31 December 2017 payable on 23 May 2018 to equity shareholders of the parent company registered at the close of business on 13 April 2018, the dividend record date, was approved by the directors after the balance sheet date.

[speedsgh] 29/3/2018 07:43

Final Results -

Financial Highlights

> Economic Value (EcV) of £723.1m (31 December 2016: £602.6m) [Note 1]
We completed the acquisition of Legal and General Nederland (which we have since rebranded "Scildon") which created £65.4m of incremental EcV. The movement is stated after recognising £29.5m of dividend payments during the year.

> EcV earnings net of tax of £139.5m (2016: £72.5m)
Includes the aforementioned £65.4m gain arising from the Legal and General Nederland acquisition. Favourable investment market conditions have contributed positively to the result.

> EcV new business contribution of £12.4m (2016: £11.7m)
Movestic continues to contribute the vast majority of new business profits. Scildon introduces a second open business to the group and is anticipated to deliver more meaningful contributions following delivery of a two year change programme.

> Group cash generation, excluding the impact of the LGN acquisition, of £83.9m (2016: £36.5m) [Note 2]
The 2017 result includes £16.2m of post acquisition cash generation from Scildon.

> Divisional cash generation of £86.7m (2016: £34.3m) [Note 3]
All divisions have made positive contributions, with the results benefitting from economic conditions and a number of non-recurring management actions.

> IFRS profit before tax of £89.6m (2016: £40.7m)
The 2017 result includes a £20.3m gain on the acquisition of Legal and General Nederland. Economic profits of £30.9m compare to a corresponding profit of £5.8m in 2016. The underlying core operating profit remains relatively stable at £38.4m (2016: £34.9m).

> IFRS Total Comprehensive Income of £86.9m (2016: £55.4m)
This includes a foreign exchange gain of £8.3m (2016: £20.1m gain) arising on a strengthening of the euro and Swedish krona against sterling.

> Group solvency ratio of 146% (31 December 2016: 144%) [Note 4]
We are well capitalised at both group and subsidiary level under Solvency II, and have not used any elements of the long term guarantee package, including transitional arrangements.

> 2.98% increase in full year dividend compared with 2016
Total dividend of 20.07p per share (2016: 19.49p per share). This increase represents the thirteenth successive rise in annual dividends.

John Deane, Chief Executive said:

"2017 has been another good year for Chesnara during which we completed the acquisition of Legal and General Nederland, now successfully rebranded Scildon, and made good progress on integrating it into our business. The acquisition has contributed to an impressive set of results on all financial metrics, including IFRS, Economic Value and Solvency II. In particular I am pleased to report an Economic Value growth, excluding the acquisition gain, of 9.1%.

All divisions have made significant contributions to cash and value generation. The UK business had again generated cash ahead of expectations and Movestic continues to deliver significant growth, which has resulted in further cash generation.

During the post acquisition period, Scildon has delivered Economic Value growth and solvency surplus broadly in line with our initial expectations. That said, we retain our view that the business would benefit from some focussed improvements and have initiated a development programme to improve the profitability of new business.

As a result of the positive performance in the year, Chesnara expects total dividends from its divisions of £70.0m, including an inaugural Scildon dividend of £22.2m."

[eggbaconandbubble] 26/3/2018 19:46

Never heard of it.