Greencore Share Discussion Threads

[totalgeek69] 20/12/2018 10:01

Wish I could help RichTea. I am sticking with my shares and going long. Depends how the tender offer goes but if it is fully taken up then the PE will be reduced quite considerably and net debt will be alot lower as well so the fundamentals of investing in Greencore will have changed.

PE roughly 11
Yield roughly 3-4%
Net debt /EBITA : 1.5 - 2.0 targeted

From FY18 Statement - Capital management

At the end of the financial year the Group's Net Debt:EBITDA leverage as measured under financing agreements was 2.3x. The Group was well financed with committed facilities of GBP728.5m at the end of the fiscal year and a weighted average maturity of 3.6 years. The Group plans to enter into discussions with its lenders to refinance its existing debt agreements in the first half of FY19, taking into account the return of capital to shareholders.

Following the disposal of the entire US operations and the related return of capital to shareholders as noted above, the Group is committed to focussing on dynamic capital management, balancing the ongoing strategic and investment needs of the Group, leverage reduction, returns to shareholders and a progressive dividend policy. In this context the Board intends to target a leverage ratio of between 1.5x to 2.0x Net Debt to EBITDA (as measured under financing agreements) over the medium term. Managing to within this range will enable the Group to make organic and inorganic investments that fit with the Group's strategy and/or return further cash to shareholders in an efficient manner, whether through dividends or other forms of return of value.

[richtea2517] 20/12/2018 09:36

So what is best policy here / can someone summarise /hypothesise

[totalgeek69] 20/12/2018 09:04

Looks that way. What ever is left over if the full tender offer is not taken up is returned to shareholders as a special dividend added to the 3.37p normal dividend on 7 Feb.

[richtea2517] 20/12/2018 08:46

So how does it work now? Special dividend on Feb 7

[totalgeek69] 12/12/2018 13:30

It is still a long way off... 2nd Quarter 2019.... They are doing a tender offer first.... Then the remainder will be a special dividend.

[bingaxu] 12/12/2018 12:38

Does anyone know when the ex dividend date is for the coming up special dividend? Thanks.

[totalgeek69] 11/12/2018 11:43

Yes.. That is correct...

[reels] 11/12/2018 11:40

Just asking. Am I correct in assuming payment for sale of US business is in $. Therefore, will there be a currency gain that lifts value on completion?

[totalgeek69] 11/12/2018 09:00

IMHO - Basically the shorts were placed last spring based on mounting debt due to the company looking to get into the US market and the issues they were encountering adapting the US business.

As the company has now left the US Market and the debt will be reduced the shorters are backing off...

[richtea2517] 10/12/2018 18:24

Shorts down to lowest in a long time - wonder why?

[des31] 08/12/2018 18:55

First quarter of calendar year 2019

[totalgeek69] 07/12/2018 11:51

2nd quarter 2019 for the special dividend

[richtea2517] 07/12/2018 09:58

Anyone know timescale for dividend from this point

[epo001] 26/11/2018 19:09

Has anyone looked at how are the EPS and PE likely to be affected? Did the US subsidiary provide 32% of earnings and profits which is about the expected reduction in share capital.

My quandary is I am happy with my holding size and 2/3 of that is a bit small so if I want to continue to hold GNC then do I scale up before or after the special dividend? I suspect dividend reinvestment will be the easiest course of action.

[totalgeek69] 26/11/2018 17:27

Decisions... decisions.... Makes no odds I would say... Sorry that isn't very helpful.

[epo001] 26/11/2018 17:01

Are people hanging on for the special divi or not?

It seems that the share consolidation is intended to reduce the value of my holding by the amount of the special divi. I hold GNC in an ISA so I have no tax considerations but will have a markedly smaller holding after consolidation.

Should I just scale up my holding now to get some back as a divi and end up with my preferred holding size? Or should I wait for the ex divi price drop and top up then?

[richtea2517] 22/10/2018 09:43

Think a final shake out before steady rise. I think. Although many forces at work will ensure it probably won't be that steady...

[bend1pa] 22/10/2018 08:40

Looks like at long last shorters are starting to lose their appetite over GNC. Big drop in shorts over the past fortnight, down from 9.88% to 5.77%, the lowest level seen in 10 months.

[totalgeek69] 19/10/2018 21:37

Marshall Wace LLP 3.10% Short 9 Oct 2018
Marshall Wace LLP 2.12% Short 17 Oct 2018

[totalgeek69] 19/10/2018 21:35

They will be reducing debt as well though. The share price is very depressed at the moment and imho will not be so under pressure once the share price div is returned as they are returning to the UK market only where they are already doing well. Admittedly all this is less exciting.

"Reported revenue in the Convenience Foods UK & Ireland division increased by 14.3% to GBP1,438.4m"

FY17 FY16
Net Debt (519.2) (331.8)
EPS 1.9 9.5

The Transaction will also support a strengthened balance sheet, with up to GBP293 million to be used to reduce leverage, and a target medium term leverage range of 1.5-2.0x Net Debt / EBITDA

Post-Transaction, Greencore will have a leading position in its core UK market, greater financial and strategic flexibility, and potential for dynamic capital management

The shorters will most likely withdraw and cut their losses...

DYOR

[totalgeek69] 17/10/2018 20:58

They're sh#tting their pants I guess. How many shares X 72pence?

[richtea2517] 17/10/2018 19:04

Marshall wace been very active here

[bingaxu] 15/10/2018 23:12

https://www.ft.com/content/2cc23058-d05a-11e8-a9f2-7574db66bcd5

[hatfullofsky] 15/10/2018 15:44

They did a placing to fund the acquisition, so returning the cash back to investors.

Although I agree they could have paid down more debt