Gvc Share Discussion Threads

[maddox] 18/9/2017 18:06

The policy announced 3 Nov 2016 was as follows:
"Dividend Policy

Absent of any significant capital allocations or investments and consistent with maintaining appropriate capital ratios, the Group plans to adopt a dividend policy of distributing 50% of annualised free cash flow, commencing financial year ending 31 December 2017. It is expected that payments will be biannual with an approximate split of 40%:60% between the interim and final payment. Furthermore, the Board will also consider returning any future excess cash to shareholders in the form of special dividends and/or share buybacks. Excess cash will be determined by the capital requirements of the business, together with the trading outlook at the appropriate time."

I haven't seen anything to say it had changed, so assumed this was it?

[maddox] 18/9/2017 17:28

Hi mylands, when did he state that?

[cheshiremoggie] 18/9/2017 17:01

Hi Maddox.The results were great and the future is certainly a rosy tinge of orangey red but unfortunately the dividend isn't quite what it seems.The company has changed its dividend policy and its now 50/50.Full year is now 33c not 41c. Bang on the market expectations.Of course GVC now has plenty of room to exceed expectations but even so I doubt if we will see 41c this year.In 4 years time however - 100c anyone?

[mylands] 18/9/2017 16:57

Agree Maddox, save for one thing. The FD stated that the final div would be at about the same level as the interim, ie a 50/50 split for the year. This would indicate a 33 cents div for the year as a whole.

[maddox] 18/9/2017 16:47

What a fantastic set of results - the Edison Report is very apt with its title 'Exuding confidence - updates to come'. Obviously the most pleasing aspect is the trading growth - against a tough comparative period and with consolidation and customer transitions to manage. As this process is still in-progress suggests that there are more improvements to come through. Germany and Brazil were highlighted as particular highlights.

The outlook is exceedingly positive: Kenny stated that they should be able to double EBITDA in four years without any M&A. The profit and free cash flow should then more than double as the economies of a scalable business will lead to wider margins.

On the new dividend policy the 16.5c declared indicates 41.25c divs for the full year on a 40/60 split - Correction (see mylands & Cheshire Moggie) posts below - The RNS states a 50/50 split so c. 33c for the full year - ignoring the potential for a special. However, the policy is to pay out 50% of annualized free cash flow - so based on the growth profile suggests shareholders will get more either way.

Once the analysts have had time to time to run these numbers through their models I expect to see some positive upgrades.

Regards, Maddox

[speedsgh] 18/9/2017 14:28

Last line of Edison's latest flashnote dated 14/9/2017...



"Continued strong cash flow should enable further special dividends."

[hubshank] 18/9/2017 13:23

Brexit

Beyond the impact of currency movements there has been no visible impact on the business from the UK's decision to seek an exit from the EU. The Group has greater sterling costs than revenues and therefore the impact from sterling weakness is a net positive. The detail of how the UK intends to exit the EU is yet to be decided, however, management believe GVC's global footprint gives it significant flexibility to face any challenges that may arise.


I lifted this from their trading statement September 2016

[noujay] 18/9/2017 13:15

And just for posterity I just received confirmation from the company that they would be issuing a Q3 update but exact date TBC.So with a bit of luck more positives soon.

[noujay] 18/9/2017 13:05

Well until it does I'm assuming they will be sticking to it. I'm not sure announcing positive interims ought to impact on the quarterly trading updates but obviously they may defer it!

[festario] 18/9/2017 12:59

The event calendar has been subject to change in the past.

[noujay] 18/9/2017 12:50

Well no need, I just follow what's on the website!

[fizzypop] 18/9/2017 12:31

Noujay - my fulsome apologies.

[noujay] 18/9/2017 11:32

Trading update in October according to company calendar. As it's listed completely separately from the interims of last week would certainly imply that we are.

[fizzypop] 18/9/2017 11:29

Noujay ... give Kenny a chance, we wont have a TS next month.

[noujay] 18/9/2017 11:12

It's a very interesting aspect and on that basis you'd think that the investment case is for significant capital growth as well as likely additional dividends assuming there is no significant M&A.Personally I'd like to see that sort of organic growth rather than a major acquisition at this stage which would most likely just pause the dividends again until the accounts catch up.Would it also surprise anybody to see an upwards revision of the dividend in next months trading update?

[investmentguru] 18/9/2017 09:59

I found this excerpt from the transcript interesting:"There is a lot of talk about M&A and I think -- if you look at underlying growth that we're getting from the business, I can sit here right now, we can do no M&A, and I'm very confident that we will double the EBITDA of this business within 4 years. If you look at the growth we're getting and with the scalability of our business model, with the technology we own, which means if we can -- if we can grow at this rate and with our cost base, which is pretty fixed, below contribution and spending, somewhere around 24% to 25% of marketing. There's no reason if you do the math we can't double the EBITDA within 4 years. Very, very confident. If I wasn't confident, I wouldn't be saying it today, obviously."

[mylands] 18/9/2017 09:47

Remarkably little press comment either after the results or over the weekend.

Goes ex div on the 21st September and pays on October 19th.

Don't want the Euro to keep strengthening as they haven't announced the forex rate yet to lock the price in.

[festario] 18/9/2017 09:45

Ah well, I predicted a possible 860p at some point last week, when the share price was at 785pThe highest point was a mere 858.5p, so I must be punished for my appalling inaccuracy.

[hubshank] 18/9/2017 09:19

Anything in the weekend papers? The September dividend is as expected but ex div date earlier than expected? Is that correct?

[kop202] 16/9/2017 07:47

Ahhhhh...mmm ....oh yea Woody thanks for enlightening my darkness

[rogash] 16/9/2017 07:32

Don't forget the divi.

[woodhawk] 15/9/2017 17:38

Not again!! It's a UT trade and of no consequence. Google it.

[kop202] 15/9/2017 16:45

701k trade gone through at the close...

[coxsmn] 15/9/2017 16:45

The results presentation transcripts are well worth a read, in fact mind blowingly good,https://finance.yahoo.com/news/edited-transcript-gvc-l-earnings-221327207.htmlDyor,coxsmn