Share Name Share Symbol Market Type Share ISIN Share Description
EI Grp LSE:EIG London Ordinary Share GB00B1L8B624 ORD 2.5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +1.20p +0.73% 164.60p 164.20p 164.60p 165.80p 162.60p 163.80p 1,452,699 16:35:28
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Travel & Leisure 648.0 58.0 11.2 14.7 771.81

EI Grp Share Discussion Threads

Showing 26 to 49 of 50 messages
Chat Pages: 2  1
EIG was promoted to the FTSE 250 index yesterday. This accounts for the large uncrossing in Thursday's (27 Sep) closing auction - about 2% of market cap.
Well the continued upward momentum seems to have followed the update on 6/9 so the market must have liked it (helped, not doubt, by reasonable updates from other pub operators) but I can't quite get my mind round their bond management activities. A couple of years ago they spent over £25m buying back part of the 2018 bond at substantially over par then reissuing a new slug at the same rate maturing only a few years later. Today they announce that they're buying back nearly £100m of the convertible Bond due 2020 at 107% whilst issuing another £150m of unsecured Bonds, so that's another £7m cash gone there. I could understand if the new bonds achieved a significant interest saving, but that doesn't seem to be so, we're just blowing cash to kick the redemption a few years down the road. If they do go ahead with the £300m commercial property portfolio sale, the big issue will be, what will they do with the proceeds?
Up 5%. Just another 22% to go to reach my target of £2
Well that's interesting. I wonder what inspired them to come out with a Trading Update when they said they weren't going to issue them any more (other than AGM). Hasn't done the share price any harm.
Tipped on UK Investor: Https://
"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?
Agree all your points jeffian. However, for me the share buybacks make sense - if they can buy an asset for £1.50 which has a tangible NAV of £2.48 then what's not to like ? It's not the best scenario for shareholders but it's better than sitting on a pile of cash doing nothing. I'm sitting tight.
Well I wish it would (though hopefully not at the same discount to NAV as Punch accepted). The depressing thing about the great "5-year plan" (2015-2020) is that their own projections at the outset indicated revenues and profits at the end of the period very little above what they were at the beginning, albeit higher income-per-pub but from less pubs (and with the proceeds from those sold "reinvested"). Maybe that's why they have an obsession about share buybacks, to make the eps look better even though profits will remain flat? I can't bring myself to sell at such a huge discount to NAV but any offer close and I think most would grab it with both hands. If it's not close (and assuming the stated NAV is a realisable value), then it begs the question (which I have asked at several recent AGM's!) why not sell down the assets, pay off the debt and return capital to shareholders?
I can see this going the same way as Punch. The possibility is always there (though not from Heineken) which will help the share price Even at £2 it's still a thumping discount to TNAV.
Well it seems remarkably perky at the moment in a difficult market so perhaps something is stirring. On the verge of new high. However, just to get this in perspective, this is where we've been since the announcement of the infamous 'strategy review' on 12/5/15 so no cause for great celebration yet -
NAV_Mike, Jeffian Spot on. Interested in your comments about the institutions. I cannot understand why they just stand by and do nothing to realise any value out of this company. I suppose they have longer timescales than us mortals. It really is time for management to show a little appreciation to the shareholders. Either sell up or, if they really are determined to continue trading, then let's see a dividend or debt reduction. I don't mind which, but not another ludicrous buyback.
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.
Solid set of results, and the discount to NAV is staggering Begs the question, why not sell up and return cash to shareholders? :)
How times have changed, eh? Once a FTSE100 stock, results don't even rate a mention in the press, nor even listed in 'market movers' in the daily Market Reports despite a good move up. How are the mighty fallen. Actually, results received quite well but I remain underwhelmed by a 5-year strategy that targets earnings/profits at the end of the period broadly similar to those at the beginning! Yes, those earnings represent greater income from a reduced estate, but that is only achieved by blowing (sorry 're-investing') all the proceeds of the pub sales. 'Surplus' cash of c£20m/year (enough for a 4p dividend) is being 'returned to shareholders' via (yet another) share buyback. I feel blessed. Not.
Good grief. What on earth happened just after 2pm - the volume went mad. Has someone seen the results early?!
15:56 I wish!
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
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.
Well Jeffian, looks like you were right about there not being any upside surprises (for long anyway). Probably should have sold it. What do you think the chances of EIG being taken out are, and by whom? - Brexit probably doesn't help attract the likes of Heineken I suppose?
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.
First! So, Punch Taverns-style takeover rumours, reasons for this afternoon's drop, hit us with your chat!
"The Company is changing its name from Enterprise Inns plc to Ei Group plc. This reflects the transformation of the Company's business from a single, predominantly leased and tenanted operation, to a portfolio of businesses comprising a variety of operating models and trading styles designed to optimise the value derived from the asset base. It is expected that with effect from 8.00 am on 10 February 2017 the Company's shares will trade under its new name of Ei Group plc and the Company's London Stock Exchange Tradable Instrument Display Mnemonic will change to "EIG". The ISIN and SEDOL numbers for the Company's shares will remain unchanged. The Company's website address will be " Anyone interested in the history will find the former thread here -
a bit like the UPS thread, people could bring shares to other people's attention on this thread. Like the 'north face of the Eiger' the prerequisite would be an inexorable rise, eg an upward (largely unbroken) gradient of greater than 70 to 80% angle over the last 1 week to 4 weeks think, in the past, of wnl or min. to get the ball rolling, consider grp
I understand there was a report in yesterday's Mail that the FSA are going to abandon their enquiry into the "Splits" saga. If this is true, EIG is a good bet, because it implies that they could pay their withheld dividend, and thus the share price would surely rise. However - the Telegraph this morning says just that the enquiry is to be postponed, in which case the jam continues to be tomorrow rather than next week, as it were.(In My Opinion etc)
Chat Pages: 2  1
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