Ienergizer Share Discussion Threads

[alotto] 28/1/2023 23:29

In 2021 IBPO took on a loan with the purpose to pay a special dividend. Is there any tax advantage or anything I'm missing to find a logic in this?
More over, would a new investor be happy to buy a share, therefore paying for a share of the debt that was previously used to pay a special dividend?
IBPO seems to have gained a positive momentum and interest payment and loan repayment don't seem to be going to be an issue, but I cannot explain the move, what's the harm of deferring a dividend payment to be paid off the company profits, rather than using profits to repay the above mentioned debt?
I copied an extract from the previous annual report.

The said facility was secured by all the assets of iEnergizer Limited and its subsidiaries Aptara Inc., iEnergizer Holdings Limited and iEnergizer Aptara Limited the loan amount was used to repay its existing term loan in full and the balance amount paid to the shareholders subsequently on 5 February 2021 as a special dividend as per the purpose of the loan.

[johndoe23] 18/1/2023 13:36

Trading update February last year, hopefully the same again

[alotto] 17/1/2023 11:45

Arden Partners plc is the Nominated Adviser & Corporate Broker, hence not independent.
On Glassdoor the employees satisfaction seems good, although some comments were not very informative. Like "canteen food can be improved" or "the salary was unexpected to my imagination", whatever that means

[gswredland] 17/1/2023 11:40

Thanks Wobbly

[wobblywilbur] 17/1/2023 11:17

Brokers writing research on IBPO are Arden Partners (now Zeus Capital) and Cannacord Genuity. The 12 month share price targets from these were, I believe, at 700p and at 675p back in Nov '22

[alotto] 17/1/2023 10:48

On the IC website I read "The 2 analysts offering 12 month price targets for iEnergizer Limited have a median target of 684.82"
Who these analysist are, I have no idea. I am sceptical about the absence of broker ratings.
The iEnergizer website is not fully clear to me, possibly because I have no expertise in the industry, but I don't fully understand what they have, in terms of software, patents etc. I don't get also how can they have tens of thousands of employees having so few offices.
They have a nice balance sheet though.

[johndoe23] 16/1/2023 19:23

Ha ha. I agree, 500p I probably would.

[dicktrade] 16/1/2023 19:11

You can all mine for 550p now John. No need to wait until tomorrow:-))

[johndoe23] 16/1/2023 18:36

Would anyone take an offer of 550p tomorrow?!

[johndoe23] 16/1/2023 15:46

Par for the course here but still frustrating. Lot of sellers on level 2

[gswredland] 16/1/2023 15:14

It seems do this. Was up this morning!

[daisylove] 16/1/2023 15:11

Big drop on no newas that I can see ?

[johndoe23] 13/1/2023 10:58

Must be close to being back past the 50/200 DMA

[gswredland] 13/1/2023 10:37

When this rises it goes up steeply !

[2bluelynn] 13/1/2023 09:59

Glad I topped up at 4 quid nice rise Let's hope for a another bod over five fifty Great dividend whilst holding too

[johndoe23] 12/1/2023 15:53

Looks like Mr.Burns has been buying more here

[johndoe23] 12/1/2023 12:19

Glad to see stabilising here

[wobblywilbur] 04/1/2023 17:45

Aggarwal is a serial entrepreneur - he is likely to want to 'cash out' whilst the business has significant growth potential. Following 'an approach' for the business last year the BoD opened it up to a formal sales process. It appears to me that suitors were not willing to pay up to the BoD's valuation of the business and they terminated the process - quite rightly in my opinion, if a decent premium to the then share price was unlikely to be achieved.
As mentioned above, the business seems ripe for a PE buyer but rising interest rates globally may be prohibitive to a sale for a while yet.
Happy to hold and take the Dividends from this growing business and await the (inevitable) next 'approach'.
That said it is always frustrating to see a share price fall when there are no obvious reasons....

[2bluelynn] 04/1/2023 13:51

Thank for all the input ... I really appreciate the different views ....The board is really pro active which makes a change from some I look at . I do my own research but nice to have a few angles

[dicktrade] 04/1/2023 13:14

All conjecture but if Aggarwal tried to sell the business last year i doubt he will want to take it private and delist ??
IBPO has a history of odd price action that is totally at odds with the business fortunes.

[alotto] 04/1/2023 12:21

I agree, the smart move would be to keep it listed with a fat dividend or sell it at a good price.

[2bluelynn] 04/1/2023 11:47

All noted , I presume if he de lists share holders still wouldn't loose their money and he would be far better off selling at a higher price ? Than doing that or upping the dividend which what rather seem to be doing

[daisylove] 04/1/2023 11:34

This looked like a strong stock to me and am dismayed at the fall, but that seems to be the law with everything I choose. NT is still holding according to his trading diary. However, there must be something the market doesn't like.