Just Share Discussion Threads

[jfb1510] 16/3/2019 17:37

Is this not a case for the police?

[rmm4] 15/3/2019 18:31

I complained about this post at lunch time and got a reply asking me to respond explaining why I found the post personally offensive. The fact that the post has still not been deleted is shameful

[edwardt] 15/3/2019 16:26

that is a perverse and disgusting post lbrokes = you should be ashamed of yourself.

[horndean eagle] 15/3/2019 09:25

By all account placing was hugely over subscribed. Got a 3% allocation. Looks like a total stitch up. They could have got the placing away at a higher level given demand. Should have at least fought for that rather than roll over as they did. Hopefully it now draws a line in the sand and the focus now goes back onto the business rather than the PRA and Capital issues.

[18bt] 15/3/2019 07:33

scbscb I certainly wouldn't quite put it that way, but certainly voting my stake against a number of directors - not least of which will be Rodney, who completely mishandled the PRA. The chairman needs to find a credible CEO successor and then find his own replacement.

[topvest] 14/3/2019 20:43

Well 80p isn't as bad as it could have been I suppose. They probably wouldn't have been able to get a rights issue away without further dilution. At least its done and out of the way quickly.

[scbscb] 14/3/2019 18:34

The new shares were placed at 80p today so a 18% discount so the directors, advisers, and institutions could all buy shares at a deep discount at the expense of PIs. A discounted rights issue with out being under written & debt would of been in the shareholders interest.

All the corrupt directors should be voted out, I will certainly vote against all the directors. My dog could do a better job, and he's been dead for 10 years. And why were the placed shares under written? Oh yes to line the already over flowing pockets of our lovely advisers. It all helps to en rich the liberal elite! No wonder populists with simple answers and other charlatans are getting elected. It is because ordinary people are sick off getting shafted by the the liberal ruling class.

[lovat scout] 14/3/2019 11:34

Decent analyst summary

Underlying operating profit up 31% to £315m while it made an IFRS loss due to changes on property assumptions “caused by Brexit”. Importantly new business margin is 11.2% up from 9% in 2017. So new business is healthy but its about the back book where the company is doing a 10% placing alongside a £300m debt issue. The solvency Capital Coverage was 136% (December 2017 139%) and the company says that it now expects own funds to increase organically from 2022.

Net assets are £1.66bn some 81% above the current share price.

Until the company achieves a state where it can grow organically from its own funds it may not trade at NAV which is 3 years away. But most investors would suggest an 80% return in 3 years is a good one.

[edwardt] 14/3/2019 11:13

feel somewhat better about adding 10% to my position to avoid unnecessary dilution.

[scrapheap] 14/3/2019 10:32

Shore Capital said it expected that the company would need to raise additional debt but the equity issuance comes as a surprise.

Analyst Paul De'Ath said it makes sense to cancel the dividend for 2018, as it was at the interim stage.

"This makes sense given the capital raise and has actually been suggested to us by a number of investors. At this stage, however, the company plans to pay a rebased dividend (1/3 of the previous per share amount) from 2019F.

"Overall today's announcements amount to the company resetting a number of factors in order to prepare for the future. The capital breakeven point has been pushed back by a number of years as part of that process. There is likely to be some short-term reduction in the share price to adjust for the placing but going forward this should put the business in a much more secure place regarding capital and take away much of the uncertainty surrounding the stock. We will need to flow the latest developments through our model but the business still looks too cheap and we would expect a positive reaction once the placing has been completed."

[horndean eagle] 14/3/2019 10:16

Looks like a bit of an over reaction but management haven't covered themselves in glory here. Should bounce later. Agree with other comments that you might see some m&a interest now that the capital position is clearer.

[topvest] 14/3/2019 09:45

Recovering a bit now.

[topvest] 14/3/2019 08:46

I will keep holding on the prospect of a bid from Legal & General or another party with a better balance sheet for now.

[topvest] 14/3/2019 08:45

2019 rebased dividend of 1.25p says it all really!

[tsmith2] 14/3/2019 08:44

Looks like it'll be at 75p or so.

[topvest] 14/3/2019 08:42

Book build at 75p or 80p then? Should be announced later on today.

[lovat scout] 14/3/2019 08:39

I suspect the equity raise was a condition for the debt raise. JUST an NAV play now with enough divi to stop the peasants revolting.

[edwardt] 14/3/2019 08:38

this is a gift to lansdowne who are still short 1.3%. they can buy them back at the placing at 16% profit. they had cut short from 2% high. if i was a betting man, they will announce a sharp reduction in short tomorrow. the city is a merky world.

[topvest] 14/3/2019 08:37

Anyway, issuing 10% of shares at 50% of book value is not a great way of fixing your balance sheet!

[topvest] 14/3/2019 08:35

I think they are a sitting duck for a bid now. Must be attractive to Legal & General you would have thought.
I agree - they have been writing too much business. High profits with no cash flow and no dividend is pointless.
Would shareholders get back more if they put it into run-off?

[scrapheap] 14/3/2019 08:34

Some of those analyst price targets might need nudging down.... Shore Cap at 165p, Barclays upped theirs to 149p only last month... to be fair Deutsche and Soc Gen were holds/neutral at 100/101p and seem more on it!

would take a £ at this point!!

[edwardt] 14/3/2019 08:31

with respect, it is far more complicated than that. i think your use of highly dilutive is a stretch too far.