Shires Income Share Discussion Threads

[aleman] 09/2/2009 13:35

NAV 6/02/09 137.49p (inc. 4.68p acc. income)
CLose 110p
Discount 20.0%
Yield 18.0% (under review as per header)

[aleman] 08/2/2009 14:54

There was an interesting article in the FT this weekend which commented on how savers are moving funds from cash to corporate bond funds and income trusts. It stated that income and growth investment trusts had seen their discounts squeezed from a long term average of 9% to only 2%. SHRS may be not be a growth income trust, but it does make one wonder why the dash from cash hasn't stopped its discount running up to twice the normal level. I suspect Friday's discount closed at over 20%.

I wish they would go ahead and announce a cut to the dividend because I don't see it being more than halved which would take the yield down to 9%. I think anything less could bounce the shares up a bit.

[lord gnome] 04/2/2009 18:03

At least we seem to have another good divi in the bag. They seem to have been pretty quick off the mark with announcing the April divi, we've only just banked the last one.

[aleman] 04/2/2009 01:08

Can't say I'm chuffed with Susan selling SHD down from 6.4% to 3.0% and driving its shares to a 30% discount from 10%!

[aleman] 03/2/2009 23:49

Discount tends to grow as markets fall and gearing accentuates the fall as well so it was likely to fall faster just like it is likely to rise more quickly. I know what you mean about the new management, though.

[kiwi2007] 03/2/2009 22:58

Stopped tracking the FTSE250 in mid Jan and has dropped 20% when compared to that benchmark..

Also earnings per share are quoted as 10p on balance sheet - yet divi is 20p


Much preferred them when the Jocks, who I trusted, ran them from Glasgow - rather than this lot.

[aleman] 26/1/2009 17:18

NAV 23/01/09 128.46p (inc 3.25p acc. income)
Close 118.25p
Discount 8.0%
Yield 16.7% (under review as per header)

[aleman] 23/1/2009 01:04

Seem to have a seller bringing discount into line with normal. Considerable exposure to financials is hitting quite hard. Most people buy here for dividends. It will very likely be cut but it would probably have to be cut by over 1/3rd to justify the fall. The last statement comments that some dividends have increased despite so many cuts but we live in unusual times. Who knows?

[kiwi2007] 22/1/2009 20:40

Any comment Aleman? Something major occurred but what?

[aleman] 13/1/2009 00:10

NAV 9/1/09 156.38p (inc. 3.26p acc. income)
CLose 137.5p
Discount 12.1%
Yield 14.4% (under review as per header)

[aleman] 05/1/2009 14:09

NAV 02/01/09 154.23p (inc.2.62p acc. income)
Close 137.5p
Discount 10.8%
Yield 14.4% (under review)

[aleman] 04/1/2009 05:28

Interesting. I can imagine a Wednesday ex-dividend taking until Monday to register given Thursday is closed. Shares Mag still has 31st as ex-dividend.

[kiwi2007] 03/1/2009 21:38

Looks like they changed it again:

The following amendment has been made to the Second Interim Dividend announcement released on 17 November 2008 at 17:22 under RNS No 3352I:

The record date for the second interim dividend is 5 January 2009 and not 2 January 2009 as previously quoted.

[aleman] 03/1/2009 21:01

Shares always go ex-dividend on the stock exchange on Wednesdays for the register on Fridays.

17 November 2008

Shires Income plc
Second Interim Dividend


The Board of Shires Income plc has declared a second interim dividend of 4.4p per share in
respect of the year to 31 March 2009 (second
interim 2008 - 4.4p) payable on 30 January 2009 to shareholders on the register at close of
business on 2 January 2009.

[aleman] 03/1/2009 13:11

Went ex-dividend on Wednesday, 4.4p payable on the 30th.

[aleman] 15/12/2008 14:06

NAV 12/12/08 148.42p (inc. 6.88p acc. income)
Close 124p
Discount 16.5%
Yield 15.9%

[aleman] 08/12/2008 15:18

NAV 08/12/08 143.24p (inc 6.92p acc. income)
Close 120.5p
Discount 15.9%
Yield 16.4% (dividend policy under review)

[aleman] 02/12/2008 15:40

NAV 1/12/08 144.35p (inc. 6.72p acc. income)
Close 125.5p
Discount 13.1%
Yield 15.7%

[lord gnome] 30/11/2008 14:50

In which case the interest will be negative at some point next year. Does that mean that the lenders have to pay the company? That would be a first :-))

[kiwi2007] 28/11/2008 22:28

Principal Risks and Uncertainties

The main risks the Company faces from its financial instruments are:

(i) market price risk (comprising interest rate risk, currency risk and other price risk),
(ii) liquidity risk, and
(iii) credit risk.

The Group's gearing comprises both long and short-term borrowings. It has in issue an Index-Linked Debenture on which the interest payable and the capital sum to be repaid on maturity are linked to the Retail Price Index. Short-term borrowing from banking institutions is also used and bears interest at floating rates. The profile of financing costs is managed as part of overall investment strategy. The employment of gearing magnifies the impact on net assets of both negative and positive changes in the value of the Company's portfolio of investments.

The Company has minimal exposure to foreign currency risk as it holds only a small amount of foreign currency assets and has no exposure to any foreign currency liabilities.


So, perhaps it's this ?
"It has in issue an Index-Linked Debenture on which the interest payable and the capital sum to be repaid on maturity are linked to the Retail Price Index"

[kiwi2007] 28/11/2008 21:11

Yes, it does... and though highly geared they also hold lots of various kinds of bonds and prefs which ought not to have been as volatile as the equity market...
The may have breached a borrowing covenant or just having a major holder selling..I guess we'll find out later!

I'd be surprised if they hold the divi but hope they can still pay out 15P or so...

I also much prefered SHRS when they really were Shires and run in Glasgow ... you could have rung them and they would have explained what was happening...

[lord gnome] 28/11/2008 16:16

SP has been moving against the market, which is odd.