London Finance & Investm... Share Discussion Threads

[topvest] 30/9/2009 07:52

Finsbury Food have slashed their dividend as well, again with no notice!

[topvest] 29/9/2009 20:57

Well its very clear to me why the WSE results were late:

Net assets were lower than share capital, share premium etc. by even more at the interim stage and they said "Subject to unforeseen circmustances (i.e. NOT READING THE COMPANIES ACT OR ASKING OUR ACCOUNTANTS!!), we expect to show satisfactory results for the period to 30th June 2009 and to maintain the dividend for the current year, which the Board anticipates paying in October 2009"

BIT OF A BASIC ERROR...NO WONDER THE DIRECTORS HAVE TAKEN A PAY CUT! THEY SHOULD HAVE ANNOUNCED THIS A LONG TIME BACK. PRESUMABLY THIS POINT CAME OUT OF THE YEAR END AUDIT. SHOULD HAVE BEEN CLARIFIED LAST YEAR, AS THE RESERVES POSITION LOOKED DODGY THEN.

"We have re-analysed the Company's reserves in the Statement of Changes in
Shareholders' Equity and in the Balance Sheet from three categories: warrants
reserve, fair value reserve and retained earnings, into four categories:
warrants reserve, unrealised profits and losses on investments, share of
undistributed profits of associates and retained realised profits and losses.
We believe that this provides a clearer breakdown of the origin of reserves and
the potential for future dividends. Despite having retained profits, we are
unable to pay a dividend as the Companies Act requires net assets to exceed the
sum of share capital, share premium and undistributable reserves before a
dividend can be paid. We will therefore not be able to pay a dividend until our
investments have increased in value by approximately 12.5%. Our strategic
investments are trading on relatively low P/E multiples and re-rating of those
investments to more normal P/E ratios indicates the potential for substantial
increases in the value of our investments. At the date of this report, our
unaudited net asset value per share had increased by 8% to 54p and we will keep
closely under review the option of paying an interim dividend."

OVERALL WSE RESULTS WERE OK, BUT NOT IMPRESSED WITH THIS U TURN BASIC ERROR. APOLOGIES WOULD HAVE BEEN NICE! I SUSPECT IN CODE THAT IS THE REFERENCE TO A POSSIBLE INTERIM DIVIDEND.

OTHER CONCERN IS THEIR INABILITY TO TAKE A PROFIT IN THE GOOD TIMES. WOULD HAVE BEEN NICE TO HAVE INVESTED THE CASH AT GOOD PRICES OVER THE LAST YEAR RATHER THAN HOARD CASH AND SELL INVESTMENTS AT THE BOTTOM.

I'M NOT BUYING ANY MORE, BUT NOT A SELLER.

[topvest] 29/9/2009 19:15

Well WSE have had to pass their dividend. Big disappointment, but not totally a surprise. Due to a technical distributable reserves issue.

Investments and liquidity in WSE all look very positive and NAV 54P versus the 32p share price. Sounds like an interim dividend may be on the cards in WSE. Hartim all sounds very positive and clearly worth a great deal more than the carrying value.

Wonder whether we may end up getting a dividend cut tomorrow here as well. Reserves position should be ok, but feeling a tad more nervous now!

[topvest] 28/9/2009 19:54

ok, worked it out.

Headline EPS ly was 1p

0.7p headline eps loss in H1

1.1p headline eps loss in H2

All pre-exceptionals.

Looks like they had to deleverage the equity portfolio a bit in H2 which was not ideal and crystallised some cash and trading losses.

With sufficent distributable reserves in the parent company and re-bounding valuations on strategic investments, should be able to maintain dividend.

Hopefully a better 2010 with strategic investments all looking good, with the possible exception of MWB which they should have dumped a few years back.

[topvest] 28/9/2009 19:43

They could have managed todays announcement a bit better. No big deal though; I suspect its just the valuation adjustments going through. Could have been a tad more reassuring though!

Results on Wednesday.

[pejaten] 19/9/2009 02:11

I wonder why Western results should be delay? It is not as if they are a complex business. Does it mean some corporate action is on the horizon? Personally I hope they either liquidate Western, or merge it with LFI.

[srtoothpaste] 17/9/2009 10:41

Topvest- rang their office last week for news of LFI update and was given WSE story.

srt

[meadow50] 15/9/2009 16:13

29th in the list of gainers..up 14% + today.

[meadow50] 15/9/2009 14:16

up again on no news.

[topvest] 14/9/2009 22:09

Not really a massive delay. Where did you hear the WSE results announcement date?

Agreed, that nice to see this move up. About time though!!

[srtoothpaste] 14/9/2009 19:11

Have heard that Western Selection results are being delayed by up to 2 weeks so this will have a knock on effect on LFI. Can anyone confirm?

Still price uplift today was welcome.

[cwa1] 14/9/2009 11:50

Yes, rumours of its death MAY have been exaggerated :-)

[balcony] 14/9/2009 11:41

Results any day now,And we have some upward movement also FIF at new highs

[balcony] 20/7/2009 09:34

Topvest-Yes last year we got a trading statement near the end of june,I think we might make a nice return on these over time with maybe 25% on a statement due anytime,Results last year was september

[topvest] 18/7/2009 18:51

We must be due an Interim Management Statement anytime now. All been very quiet apart from a couple of directors deals. None of their investments, LFI or WSE, have imploded so far which is a good sign.

[balcony] 01/6/2009 10:11

I thought we might have seen a rise today with FIF statement.

[topvest] 03/3/2009 21:07

Yes, but WSE is on a big discount. Marshall bought last week I see.

[markt] 03/3/2009 11:46

..bet you it goes down again !..sadly...

13p to buy when NAV is 16p....unusually small % margin for LFI in a falling market...

[markt] 02/3/2009 11:19

....my vote is for selling all that is needed in order to have 0 debt.

...take a look at long term (40 years) graph for Dow Jones !....it is falling off a cliff...and with USA internal product falling 6% in last quarter as part of worsening trend...then it is getting worse not better...

..being geared and over linked to the fall is ....negligent in my opinion...(some prof. funds have sold all, only hold cash or Govt. bonds)

..time to buy is when the chart stops falling !!..and perhaps goes up !...till then....just wait !!

[topvest] 27/2/2009 22:11

I disagree. If they can hold on they might as well. Selling good FTSE100 stocks in today's market is a mugs game. It's one of the best medium term buying opportunities in a decade or more.

Finsbury only needs stable sales to do well. People still have birthdays!

[markt] 27/2/2009 16:27

my suggestion would be to sell off general portfolio now to reduce the loans.

[markt] 27/2/2009 16:24

Topvest
THe debt of LFI....as you mention....very negative point.

Gross negligence of the directors to be in this situation in my view. Gross negligence. Incompetence.

the debt as % of assetts is very bad in this falling market...
..with queues outside Northern Rock a long time back...and bad economy news in 2008 and signs in 2007 ...then having so much debt as % of NAV at this time is negligence in my view.

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"I wonder what the covenants on the debt are;"

If I recall correctly (see annual accounts) the basic principle is that the dividends from general stock market investments must pay the interest cost on the loans..and I assume with some margin....see accounts for details...

(perhaps the value has to exceed the loan amount as well, with margin...)

so...
if dividend paid by general market stocks was to fall then could perhaps have problems to pay the interest and then have problems...
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increased debt in order to take part in the share/warrant issues by WSE
at 66p for shares..and was it 53p for warrant units...

WSE shares now around 20p....so was not a good investment !!
(had tax reasons....that is why they did it I am sure)
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at least now...no worries for LFI and WSe about any tax on gains !!

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so...as you say ...if have to do forced selling to pay off the loans then could easily have terrible effect on LFI...eg. if have to sell at low values ...and then market recovers but you do not then own the shares...so don't partake so much in any recovery


but recovery looks way way in the distant....or when !??

[markt] 27/2/2009 16:11

Finsbury Food Group plc
investment was worth 6,880k pounds Now 940k GB P

----

MWB plc investment was worth 4,860 pounds Now 595 k GB P
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I say incompetence of WSE/LFI directors. Should have sold.
But MR Marshall would have to have given up his director or chairman positions.
I think he sits on the boards of Finsbury and MWB

[markt] 27/2/2009 16:02

Hi
...I agree with you...except ...
note that Finsbury also makes a lot of special breads !...
the bread sales hopefully won't reduce too much but I think that cake sales could be hit..at least for a few months
(UK bread prices are low, mega competition)

the general crisis news every day on the TV may make many people cut down on treats like cakes....even if they could really afford it....ie. put some money in the bank in case they need it if crisis gets worse...

but high % of people are still working and can afford cakes etc. But affected by mentality.
FIF company news is not good about margins....shows that lots of competition

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FIF was a strong sell at over 1 pound/share...in sector with high competition and where the costs of each product can not be avoided...so difficult to make too much profit....