Share Name Share Symbol Market Type Share ISIN Share Description
Ei Group Plc LSE:EIG London Ordinary Share GB00B1L8B624 ORD 2.5P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 284.60 0.00 01:00:00
Bid Price Offer Price High Price Low Price Open Price
284.60 284.80 0.00 0.00 0.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Travel & Leisure 724.00 -199.00 -46.20 1,260
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 284.60 GBX

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Date Time Title Posts
13/3/202012:16E I Group (formerly Enterprise Inns)76
18/7/201711:37*** Enterprise Inns *** -
28/3/200708:44THE EIGER CLUB-
05/4/200411:07Exeter Inv. G'p10

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Ei Daily Update: Ei Group Plc is listed in the Travel & Leisure sector of the London Stock Exchange with ticker EIG. The last closing price for Ei was 284.60p.
Ei Group Plc has a 4 week average price of 0p and a 12 week average price of 0p.
The 1 year high share price is 286.60p while the 1 year low share price is currently 280.40p.
There are currently 442,701,324 shares in issue and the average daily traded volume is 0 shares. The market capitalisation of Ei Group Plc is £1,259,927,968.10.
lukmanpatel: Another troll by the username lsehotdealz haha, share price is stagnant and there’s talks of fundraise at 10p on that board lol desperation has lead to going round posting on different board to prevent share price from dropping, usually ud stay quiet and average down and accumulate if you see huge potential lmaoo he’s spamming all the boards
leading: Jeffian Thanks, I am away on holiday at the moment, so haven’t watched it. However, one thing did occur to me. It is hard to see how the company justifies carrying goodwill on the balance sheet. If the assets are actually worth the tangible net asset value only, as in the recent disposal, then the goodwill should be written off I would have thought. If the goodwill is written off, then the NAV is lower and the discount of the share price to NAV becomes much smaller too. So, I question the use of the supposed discount to support buybacks. The question is why are the directors so keen on buybacks. I suspect there may be a misalignment of executive and shareholder interests? Would be good to know if the non execs are challenging them on this and making sure the interests are aligned. We live in hope, but not expectation.
leading: A few thoughts on EIG. NAV per share at 30/09/18 was 334p. Assuming this hasn't changed much gives a discount of share price (223p) to NAV of 33%. On a tangible NAV basis (excluding goodwill) its more like 25%. The share price has increased substantially lately coincident with the recent buybacks. There is still probably a bit further to go, but at some point the focus will switch to earnings prospects and dividends rather than the NAV discount to justify further progress. All is not doom and gloom on the earnings front. Strong employment figures and positive real wage growth bode well. In the short term, the fine Easter weather must have secured a good start to the second half albeit against strong comparatives. Against this, there will be some cost inflation in wages (and pension contributions from April onwards). Heroic assumptions ahead: It looks to me that the company should be able to meet all bond repayments due up to and including 2022 from cash flows as they fall due if it chooses to. I am assuming that the company generates £140m of cash p.a. being net cash from operations of £270m less interest of £130m. This assumes that capital expenditure on the estate continues to be financed from disposals. So, for the four years including 2022 thats £540m. Bonds due are £125m in 2021 and £250m in 2022 and about £270m of the amortising securitised bonds, all of which totals £645m. So, OK, the company needs find £100m from cash balances or disposals to make it work. It is hard to see earnings making real progress on a declining asset base as properties continue to be sold to finance capital expenditure. Regardless of my comments about debt service above, I wonder if a dividend will be reinstated soon. With the discount to NAV greatly reduced it becomes much harder to justify buybacks. Reinstating a dividend would increase the attraction to institutions, some of whom are mandated away from non-payers. A dividend of 3.35p would give a yield of 1.5% at a cost to the company of £15m p.a. which might be a suitable starting point. Perhaps we will see one with the next annual results. Edited 26/4/19. Easter 2019 is in second half not first as in the original post.
leading: Jeffian, agreed; it is all about that sweet spot. It’s good to see the company starting to make some progress anyway. Perhaps the strategy wasn’t so daft after all. The share price has had a good run. I wonder if it will hold on when the buyback ends (I think it is about 90% complete).
leading: Good to see this disposal today. The proceeds already seem to be burning a hole in the management's pocket. Just pay down debt. Net debt at 30/9/18 was £2,038m less £348m proceeds gives £1,690m or about 52.5% LTV against 56% at 30/9/18 I think. This also meets their "medium term" target of net debt = 6 times EBITDA. (287m X 6 = £1,722m). Debt is still too high and leaves little room for error IMV. Share price is re-rating and will continue to do so as the Balance Sheet is knocked into shape. So, use any excess to buy back the bond due in 2021 and save us from another exceptional charge for rolling it over.
jeffian: "if they can buy an asset for £1.50 which has a tangible NAV of £2.48 then what's not to like ?" Other than that it isn't worth £2.48 to you and me if we can't realise it?! They've been living off the "NAV" story for years but until the share price gets anywhere near it, it's just a figment of the accountants' imagination. Over the past few years, EIG have sold £100m's of pubs. Let's say they get NAV for the sales; for every £1 received, they could distribute it to shareholders via a dividend or return of capital (worth £1/£1 in the shareholder's hand) or they could pay down debt (NAV neutral but maybe good for sentiment and thus share price rating) but they choose to "reinvest" it in the estate (look at the annual property write-downs to see how solid that 'value' is!) or buy their own shares which immediately makes that £1 of hard cash worth just 60p in the shareholder's hand (150/248%). If they distributed to shareholders, there would be nothing to stop you piling in and buying more 'discounted' shares, but at least we would have the choice. Their sole strategy is to seek to 'improve the quality' of the estate and hope that the market rates their shares at something close to the underlying NAV but time and again I have repeated the mantra that Directors/Management do not control the share price, only the market does that, and the management should concentrate on the levers they can and do control - revenues, profits, dividends - and if they improve those, the share price will follow in due course. In fact, all those KPI's have been flat for years - and are projected to remain so through to the end of the "5-year plan" in 2020 so with flat earnings and no dividend for 12 years, how exactly is 'shareholder value' being realised?
jeffian: The very point I have made to them at several past AGM's! The expressions at 'top table' were very much how you would expect a turkey to look if Santa had walked in with a suspiciously axe-shaped present. This '5-year strategy' has been a nonsense from the start, although a lot of it is probably what had to be done to keep the company going, but that is the big question - keep it going for what? It's obviously in the interests of the management and staff to keep it going but if they can't produce growth in revenues, profits and dividends (and the 5-year plan showed from the outset that they wouldn't) and reward shareholders with dividends, returns of capital or an increasing share price, then the answer is an orderly wind-down and return of capital to shareholders. At the moment, all surplus cash is either being 'reinvested in the business' or 'returned to shareholders' (Ha!) via share buybacks. In either case, that means that every £1 realised in profit or as a result of disposals is being turned into 40p in the blink of an eye. Last year I tried to interest some of the largest shareholders in taking a more aggressive position but, although I was surprised that they were prepared to engage with me at all, the general response was that they were happy with the way things are going. Looking at the share chart, it's hard to see how that can be (although some may have holdings acquired at much lower levels) and the 5-year plan shows that revenues and earnings are likely to remain flat for the next 2 years as any improvement at individual site level will be offset by the continuing disposal programme.
spob: You can change the name but ... 31 March 2017 Current assets minus TOTAL liabilities = -2488m or -516p per share ! price now 126.5p Number of shares 482m Equity Market cap 610m
jeffian: I don't think Brexit has anything to do with it, but I imagine Heineken would run into regulatory problems if they tried to take Ei as well as Punch. If the Government didn't like having two monster pubco's, they'd like one enormous one even less! Having watched the Interims presentation, I must say that I'm depressed. A sense of smug self-satisfaction about 'delivering their strategy' seems totally inappropriate when they again show a slide (on which I remarked last year) indicating that - despite selling 1000 pubs and raising £300m over the period - 'Site EBITDA' (that is, income generated at pub level before any central overheads are taken off) over the 5-year period remains all but flat (£366m up to £375m; around 2%). In the meantime, they've blown £25m of our money 'refinancing' part of the 2018 Bond by paying bondholders a stonking premium then re-issuing new bonds at around the same yield, over 6%. Burford Capital have just raised £175m at 5% unsecured and it was oversubscribed! What are we up to? Needless to say, they'll take credit for the recent increase in share price (still less than 50% of stated NAV) but a glimpse at the chart shows that it can be pinpointed to the announcement of the Punch takeover bid on 14 December last. Unless they change their tune and start genuinely returning value to shareholders in the form of a dividend, returns of capital or significant reductions of debt beyond the planned amortisation, then that remains our best hope too. Who could that be? No idea, I'm afraid.
jeffian: Looking unusually lively at the moment. First time we've been decisively through 140 since 2013/14. Could be in anticipation of interim results on 16/5 but I'm not expecting any surprises on the upside as the business plan through to 2020 envisages flat earnings as improved 'quality of earnings' from conversions to Managed Houses or transfer to commercial tenancies is offset by the reduction in the number of pubs as a result of sales (the proceeds of which are 'reinvested' in the estate rather than used to reduce debt or returned to shareholders). Even at this level, the share price is still only around 50% of stated NAV and I don't understand how they intend to realise that value for shareholders unless someone comes and has a pop at them a la Punch. The sooner the better, I say.
Ei share price data is direct from the London Stock Exchange
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