Connect Share Discussion Threads

[turbocharge] 02/2/2019 13:46

Summary slide from Trading Update 22.01.19

- Overall performance in line with expectations
- Good progress with FY19 priorities
- Focus on complex nature of Tuffnells turnaround
- Disciplined capital allocation focused on balancing the needs of stakeholders
- Net debt/EBITA ratio at the end of H1 to be expected to peak at circa 2x
- Sales and leaseback proposed with proceeds up to £35m
- Intention to bring net debt/EBITA ratio down to 1x by FY21
- Capex to be focused on addressing historical under-investment in core, as well as appropriate level of maintenance, in the range of 30% to 50% of EBITA
- FY19 final dividend expected to be no less than 1.0p per share
- Implementation of progressive dividend policy for the ensuing years, based on average FCF growth

[turbocharge] 01/2/2019 16:10

Showing as a sell:

16:08:58 35.7000 14,444 O 36.0000 36.6000 Sell

edit: Strange, my broker execution screen shows my buy to be at £0.356

[turbocharge] 01/2/2019 16:07

order executed at 35.6 not showing yet

[turbocharge] 01/2/2019 16:00

Decided to stay long, and may even top up with another 14,444

[prokartace] 01/2/2019 16:00

SLOW haemorrhaging???

[turbocharge] 01/2/2019 14:04

To bail out or not bail out or the question...

Perhaps keep faith and stay long

[turbocharge] 01/2/2019 11:12

Some good news or a buyer is needed to stem the slow haemorrhaging of the SP!

[neilyb675] 31/1/2019 15:56

32,059,126 or 22% of the vote

is apparently a small number....!!!


The Board acknowledges the number of votes cast by a small number of shareholders against resolution 6 for the re-election of Gary Kennedy, Chairman. The Board has initiated dialogue with certain interested shareholders in order to better understand their voting decision and will continue to engage with shareholders over the course of the year on this matter. The Board will take those views into account, where appropriate, in order to ensure good corporate governance principles are maintained and will, pursuant to the 2018 Corporate Governance Code, report in the Company's 2019 Annual Report what steps have been taken by the Board in order to understand shareholders' views in relation to this resolution and what impact any feedback may have on future decisions to be taken by the Board and actions or resolutions proposed.

[napoleon 14th] 28/1/2019 17:09

I only have small stake here. So far, good enough. Wait & see, wait for proof...

BTW, Forum, who have just taken a 5.8% stake in CNCT, are the ones who subscribed to a very large stake (c. 30% if I remember right) in GLOBO just days before the proverbial hit the fan there...
Caveat emptor!

[turbocharge] 24/1/2019 23:30

Connect Group targets return to profit for Tuffnells; puts £35m of property up for sale

Tuffnells owner Connect Group has put property valued at up to £35m on the market as it revealed that it was targeting second half return to profitability for its irregular freight business.

In the 19 weeks to 12 January 2019, it said it had made good progress with its turnaround plan, which has seen it separate its core businesses and support them with dedicated resource.

In line with its expectations, the work has seen total group turnover from continuing operations fall 4% year to date to £516.7m (2018: £538.1m).

Of its two divisions, both Smiths News/DMD and Tuffnells saw declines but the irregular freight business saw the larger drop, with turnover down by 8.8% to £58.2m (2018: £63.9m).

However, Connect added that good progress had been made in stabilising Tuffnells’ performance and the group is targeting a return to profitability for it in the second half of its trading year.

Connect has also placed 16 freehold and long-lease hold Tuffnells properties on the market via agent Knight Frank. It hopes to raise £35m before tax via sale and leaseback agreements, which it will use to reduce debt.

Source: motortransport.co.uk

[turbocharge] 24/1/2019 13:16

Couldn't find much information about this fund

[edmundshaw] 24/1/2019 13:15

Massive buy into Connect by the FORUM Family Office Value Fund which is an offshore fund based in Luxembourg. Not doing great at the moment but then it is a value funf, and they have not had a good year as a class...

Their blurb: "For our investment decisions, we perform a detailed, private-equity like due diligence. The process consists of management meetings, customer interviews, interviews with industry experts as well as researching difficult primary material."

[turbocharge] 24/1/2019 13:11

Looks like Forum Family Office Value Fund have been buying CNCT, they now have a 5.8% holding (no previous notification).

See todays RNS Number: 9904N

[edmundshaw] 22/1/2019 16:08

Agree the last lot had an atrocious last two years at the helm. But South African businessmen don't generally take prisoners in my experience - I expect a real shake-up here. My remaining holding is small, having sold shares bought near the bottom into recent rises, but I shall leave those to run and see what the new guy can do.

I am not expecting to see the heights of £2 again anytime soon. But I am still attracted by the chance to convert the cash from the cow and the potential for Tuffnells in the right paws...

[turbocharge] 22/1/2019 14:51

'Good progress has also been made in streamlining head office support functions. Overall, costs are therefore in line with management's plan and our performance targets for ongoing service and efficiency improvements remain on track as we prepare the Group for a sustainable recovery.'

[scobak] 22/1/2019 14:27

Last few days in N Yorkshire I have seen several Tuffnell's wagons and they seem to be double crewed. Am I missing something here? Is this widespread? I can't see how paying double for manning lorries is economic or efficient.

[turbocharge] 22/1/2019 14:17

I'm willing to stay optimistic, and don't plan to sell just yet.

[meijiman] 22/1/2019 12:50

Yes the previous lot made some classic errors. The new main man seems to be talking a good game ..let's hope he can deliver.

[turbocharge] 22/1/2019 09:36

The Group will hold a meeting for investors to discuss its recovery strategy and capital allocation approach on 22 January 2019 at the office of Buchanan Communications, 107 Cheapside, London EC2V 6DN. The meeting will commence at 2.00pm and an audio webcast will be available from 5pm today via the following link:

hxxp://webcasting.buchanan.uk.com/broadcast/5c4585dcb1cda5032284d474

[edmundshaw] 22/1/2019 08:11

A negative take from someone who has sold out at a loss is not very unusual, and understandable. But I don't think the negatives are anything new or surprising.

From a more balanced point of view, I think that update is pretty much in line with expectations, and shows a businesslike approach. A 1p = 3% dividend is probably a good compromise at the current price to try to support the share price at some level around 30-45p while reinvestment in the business is underway, but is not really the main focus for the business right now. Given the cash cow of the news business, if management can restore the Tuffnells business this has prospects, though I admit to being disappointed by the sale and leaseback, which represents a permanent new cost to the business.

Of course whether Mr Market decides to punish CNCT for past news, or is disappointed in the speed of progress in the short term, we shall have to see.

[speedsgh] 21/1/2019 14:07

Yes, Trading Update tomorrow according to company website...