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Share Name Share Symbol Market Type Share ISIN Share Description
Imperial Brands Plc LSE:IMB London Ordinary Share GB0004544929 ORD 10P
  Price Change % Change Share Price Shares Traded Last Trade
  3.00 0.15% 2,010.00 2,111,260 16:35:04
Bid Price Offer Price High Price Low Price Open Price
2,007.00 2,009.00 2,018.00 2,002.00 2,004.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Tobacco 32,791.00 3,238.00 299.90 6.7 19,103
Last Trade Time Trade Type Trade Size Trade Price Currency
18:13:51 O 2,500 2,010.00 GBX

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Date Time Title Posts
26/1/202316:34Imperial Brands PLC (formerly Imperial Tobacco)7,986
31/7/202013:48IMPERIAL BRANDS2
26/9/201907:25Imperial Brands Podcast on Trading Update-

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Imperial Brands (IMB) Top Chat Posts

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Posted at 27/1/2023 08:20 by Imperial Brands Daily Update
Imperial Brands Plc is listed in the Tobacco sector of the London Stock Exchange with ticker IMB. The last closing price for Imperial Brands was 2,007p.
Imperial Brands Plc has a 4 week average price of 1,998p and a 12 week average price of 1,973p.
The 1 year high share price is 2,185p while the 1 year low share price is currently 1,434.50p.
There are currently 950,408,101 shares in issue and the average daily traded volume is 3,387,194 shares. The market capitalisation of Imperial Brands Plc is £19,103,202,830.10.
Posted at 23/11/2022 20:14 by wunderbar
It’s almost 18 months since I posted on this bb. Thankfully there’s been a marked improvement in both sector sentiment and share price performance during this time. IMB’s share price increased 5% in 2021 having previously suffered five consecutive years of decline. YTD 2022, share price is up 33%, currently 2185p. I have to give credit where it’s due - Stefan Bomhard has [so far] executed his plan to perfection. He’s done what he set out to do in the first two years of his five year turnaround plan - reduce debt, increase market share of key brands, rein in NGP spending, and initiate £1bn share buyback [5% of company]. What’s so refreshing about this is the fact it’s been done in the proposed time frame. Of course IMB’s [unforeseen] forced exit from Russia was a big setback, resulting in a whopping £463m hit. Nonetheless, this didn’t stop the business becoming a lean mean cash machine.

Whilst I don’t post on here too often I do read posts regularly and feel compelled to agree with Marktime1231’s recent comments about persons on here moaning about the £1bn buyback and negligible dividend increase. On the subject of buybacks I have to say I’m not a fan [unless done on grand scale at knock down price], they seldom reward shareholders directly, more often than not deemed to be a waste of money in the eyes of most ordinary investors, many of whom would rather have the cash. Saying that though, the market wanted a buyback and got exactly that, the sheer size of it had a positive impact on the share price. So, imagine my dismay on the day of the announcement [6 Oct - share price closed up 2.5%, was up 4.5% at one stage], rather than see a tide of joyous comments celebrating the soaring share price I was shocked to read many posters on here instead honing in on the buyback news with a barrage of negative comments and completely ignoring the rise altogether. Unbelievable I thought. The way I saw it, the market’s happy therefore shareholders should be. Fact is, since the buyback announcement, the share price has risen 13% [acknowledging full year results also contributed]. At the end of the day I for one don’t care what propels the share price as long it’s going in the right direction.

In the weeks running up to full year results I was surprised to see a few investors on here expecting a large dividend increase of perhaps 5-10%. My initial thought was what planet are these people on. As it transpires the dividend was increased by 1.5%, and again this attracted some negative comments. Came as no surprise to me though. After all, with a current yield of c.6.5% it’s already one of the highest in the FTSE100. And noting it was the reckless dividend policy of previous management that was partly responsible for IMB’s share price decline in recent years. Increasing the dividend c.10% year on year was simply not sustainable as far as the market was concerned, doing so while profits were being squeezed and debt rising was illogical, and so the market eventually got what it wanted in May 2020, seven months after CEO Alison Cooper’s departure, with the interim management team announcing the company would be cutting the dividend by 33% as it sought to prioritise debt repayments [no doubt as instructed by Bomhard prior to his arrival]. Imperial have since implemented a more progress dividend policy, as demonstrated by recent 1.5% increase. Next year I'd expect low to mid single digit growth.

Having made my initial purchase in IMB five years ago [Nov 2017, terrible timing], my investment finally swung into profit for the first time ever when we climbed above 2000p last month [albeit on a technicality if I include dividends]. My biggest mistake was averaging down too many times between 2200p & 2800p during 2018/2019, completely reckless behaviour, all in the false belief this supposed safe-haven FTSE100 stalwart surely couldn’t go any lower. Needless to say it did, big time! Bottomed out c.1200p in 2020. Having made some astute top up’s c.1400-1500p in 2021 my average is now 2400p. As I say, technically speaking my investment is now in profit. However, my ISA says different, currently showing a double digit loss [obviously not recognising divi payouts]. Being a stubborn SOB I’m determined to bail out at 2400p and claw back my entire investment stake [call it a matter of principle]. Given my exit point is only 215 points away it’s not inconceivable we won’t see this target within 3-6 months given current momentum, although tomorrow is ex-div [49.31p] so will be interesting to see how well this holds up. I might even try and trade the last couple hundred points. For the first time in a very long time I’ve started to believe I can exit this stock financially unscathed [not so sure about emotionally unscathed]. I wonder how many other regulars on here contemplating bailing out on higher price. Spud? Marktime?

I sincerely hope the next time I post on this bb is to announce the euphoric moment of finally exiting this stock. Until then.

Posted at 12/11/2022 08:07 by jrphoenixw2
#7877/Marktime: 'Wow so £1.50 of the recent IMB share price was a defensive premium? Or has IMB been oversold as punters scramble to release cash to catch the risk-on express train? Can't be too disappointed, while we have a buyback going on.'
---------------------

Haha pithy yet a good summation.
It seems that (reportedly) this week saw a Defensive (+non ESG-sectors?) sell-off. Good time for passive/retiree/long-term investors to top-up on firmer yield?

Posted at 11/11/2022 12:40 by marktime1231
Wow so £1.50 of the recent IMB share price was a defensive premium? Or has IMB been oversold as punters scramble to release cash to catch the risk-on express train? Can't be too disappointed, while we have a buyback going on.
Posted at 16/10/2022 13:00 by valuehurts
If it goes down it's even better. More accretive to future earnings if they continue to buy at lower levels. Buybacks are not used to pump the share price higher in the short term but to drive eps over the long term. I wish IMB would go down further they would buy back more of the business. You are buying a business not a share price.
Posted at 10/10/2022 17:54 by this_is_me
In my opinion they should go ahead with buybacks while the share price is below something like £24 and then switch to paying off debt as it matures if the share price gets above that level and after that hopefully with the share price still rising, use nearly all the free cash flow to pay dividends.
Posted at 06/10/2022 11:31 by this_is_me
If the share price is low buybacks are good; that is why investment trusts buy back shares below NAV

If the share price gets very high sell shares in the market; that is what investment trusts do. (pay down debt in the case of IMB)

I have never known investment trust shareholders to object to either.

Since the Board think the shares are undervalued they should aim to buy back as many as possible at low valuations.

The main problem with share buybacks is that too often clueless Boards fail to raise money when the share price is high and instead do buybacks and when they need money for acquisitions sell shares after the price has fallen.

Posted at 06/10/2022 11:02 by marktime1231
Unbelievable carping! The share price has just jumped to a high as a direct result of this announcement! For goodness sake have the grace to cheer a good market response and hope for more.

On unexpected news of improved "returns" eg an immediate start to a 5.5% share buyback programme over 12 months, to be followed by others. Brilliant if this helps clear down institutions who want to dump their stock, partly what is holding IMB back.

So let's note everyone that the share price was 1900p when the buyback started with 950.4 million shares in issue. In 13 months time when we get FY23 big dividends announced we will see if buybacks (here) are a wasteful con or whether they actually do lead to improved sustainable dividends and firmer share price

Trading results show the strategy is working eg +1% even before a currency tailwind also +1%, but any meaningful improvement in dividend (+5-7% ?) next year will be thanks to the buyback concentration.

A little surprised we didn't get more precision on net debt other than "at the lower end" of 2-2.5 x ebitda. I was expecting debt reduction priority to continue to below 2. Even more surprised that Bomhard has said he will keep it there, eg all the surplus cash is now going to share buybacks. Maybe all the debt which is worth paying down has been, the exec consider the residual borrowing is all "good" gearing and (as some of us have been trying to explain) at a level where it makes economic sense to continue carrying the debt.

Anyway to sum up, stop moaning and enjoy the good news, please and thank you.

Posted at 09/9/2022 12:18 by marktime1231
The worth of a buyback is when shares are trading at a considerable discount to par value (not necessarily rock bottom), albeit you have to use judgement to decide what par value is.

If you are still holding here confidently in anticipation of a rising share price you must think there is still a fair discount. What is your target? Remembering a scathing post #7175 here at the start of the year was sure we would see £14 again before £20.

I wonder how much of the recent share price progress is down to cable, has the value of IMB in USD moved much?

Another way to judge the merit of a buyback over debt reduction is to compare the cost of the dividend (now c. 7.2%) with the average cost of existing debt (approx 3.5%) or the cost of debt facility renewal (the last was US Treasury + 3.2% which is worryingly expensive despite IMBs debt reduction efforts to enhance credit worthiness). The gap is narrowing, and the cost of new debt was so surprising to me that I have now decided debt reduction or a buyback or a mixture is fine whichever. I do not expect Bomhard to throw surplus cash at enhancing the dividend which will only rise according to improving revenue per share.

A factor when considering buybacks is that institutional holders want one, presumably to allow those with an ESG agenda or those with super long investment horizons who see IMB becoming a stranded asset, to offload without clobbering the price. For example Scottish Widows (see #7440). Requests for buybacks were at the top of the agenda at the last AGM Q&A. Bomhard said he was open to the idea, well he kind of has to, but has since continued to prioritise debt reduction.

My feeling is that for now the banks have stronger voice than the big shareholders, so Bomhard will keep directing surplus cash flow in to debt reduction pro tem. And if the share price recovers towards £25 the opportunity for obviously cheap buybacks will have diminished. And debt will fall to such a low level IMB might be consumed for its gearing potential.

Posted at 30/5/2022 11:14 by marktime1231
Why? Why do you prefer debt reduction to buybacks in all circumstances?

Why would you continue to pay down debt which costs <3%, why would you continue to rapidly drive down borrowing to a sub-optimal level which Bomhard says is around 2 x ebitda, when the cost of paying dividends is >7%? The economics are clear while shares are so cheap.

Why not divert some of the surplus cash to buybacks, you get twice the bang for your buck? When the headline in the analyst report is no longer the "mountain of debt" negative sentiment why keep paying it down so sharply?

A buyback is on the cards so that ESG-minded institutions can sell down without dumping on the market, something which has probably been depressing the share price, partly why we are on a p/e of 7. A buyback is what some analysts and big institutional holders want, they have been asking for it. A buyback may or may not directly strengthen the share price, but it is a bit perverse to say the board is selfishly minding their own interests by consolidating value.

A buyback concentrates the value of remaining shares and increases pro-rata the dividend-per-share, payments can be progressed without increasing the gross cost of the dividend. Permanently. Embedding dividend progress. That is a good thing, isn't it? Especially if you are here for the long term.

Bomhard has promised to consider capital returns when net debt is approaching 2 x ebitda. He may continue to chip away at debt to reinforce IMBs credit worthyness and image of financial prudence. But not at the £1B+ pa rate he is cutting debt at the moment. Not forever. You may be more comfortable with even lower debt (I suspect Bomhard is himself similarly conservative), but there is a level at which it becomes less of a priority. There has to be a limit, where is yours?

By capital returns I am hoping he means buybacks and no splashing out special dividends. No need to ramp up the distributions. He does not need to bribe the market because the yield is already about the best you can get.

A buyback makes good sense for all sorts of reasons, once you get past the notion that is not an attempt to artificially support the share price for the benefit of the board. It would, all else being equal, make the long-term dividend prospect more secure and attractive. It may or may not also support the share price.

Dismissing buybacks as always disappointing, as a fad, as an easy option, as self-interest is harsh, a bit of a prejudice actually. When debt is in control and the cost of debt is lower than the cost of divdends.

Posted at 31/3/2022 12:42 by 4spiel
What is the Russian potential loss on IMB share price 300p?
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