Steppe Cement Share Discussion Threads

[mattjos] 05/11/2022 18:58

UK saver can get circa 3% on instant access saver account.

Let's say you have £1,000 to 'save' / invest for the short-term

Stick it in a bank and get £30

Stick it STCM at (for arguments sake) 40p by buying 2,500 shares at 40p ea.
Shortly thereafter you'll get £125 (as the Capital Return) and be able to sell your consolidated shares at circa 40p.

Clearly the ability to buy at 40p, post news issuance, will not last for long.

[mattjos] 05/11/2022 18:39

What likely to happen is as follows:

Each shareholder receives a 5p 'B' share for every Ordinary Share they own.

The company will then buyback all of the 'B' shares from all of the shareholders at their par value of 5p ea.

This will be carried out together with a consolidation of the Ordinary Shares & the rate of consolidation will be equal to the sums expended in issuing/buying back the 'B shares.

The net effect should be that shareholders receive the intended 5p / Ordinary share payment and the total number of the shares they own will be reduced in quantity.

The near term effect should be slightly different to a dividend as, under ordinary circumstances, the share price drops on the Ex date according to the sum of the divi payable.
On this occasion though, that 5p share price reduction will be negated by their being an equivalent reduction in the number of shares in issuance & therefore the share price should remain flat on execution.

[mattjos] 05/11/2022 18:07

KS, see here:





The company does have the necessary Retained Earnings to make such a payment

[king suarez] 05/11/2022 17:24

wilo, are you suggesting share buybacks instead of dividends?

[wilo101] 05/11/2022 16:36

2022 will be paid in 2023, not 2023,potential big deals around too.

[wilo101] 05/11/2022 16:35

2021 will be paid by capital return, then Malaysia will be history......

[mattjos] 05/11/2022 16:24

We'll know quite soon & i'm reasonably confident it will be 5p for this year and something like 5-6p for the 2023 dividend - due payable in just under 9 months time.

Call it 10p combined. Stock would very rapidly move to £1+, imo

[mattjos] 05/11/2022 16:13

IF the Distribution is treated as a Capital Return for UK shareholders then, is it correct to assume that it would be treated by HMRC according to Capital Gains Tax rules rather than Dividend Tax?

If so, there may be some unanticipated tax benefits for those UK investors holding some/all of the shares in a trading account rather than ISA or SIPP.

[mattjos] 05/11/2022 16:06

Thanks wilo …. that may well be the resolution for this year if clarification remains outstanding.

Last year's dividend was actually paid to investors on 30th July & given we are now into November, I agree with you that there will be negligible delays to payment of the 5p/share as/when they advise if it will be an Exempted Dividend or an Exempt Capital Return.

[wilo101] 05/11/2022 16:04

No Malaysia will be engineered out, is just an itermediary holding company between BV and Labuan, made sense at the time of creation, not now.

[mattjos] 05/11/2022 16:01

Given the nature and size of the majority shareholders resident in Malaysia, I am assuming they & the company (+ respective advisors) are still waiting on clarification on this point re. "Brought into Malaysia".

[wilo101] 05/11/2022 15:59

Will be a capital return within 11/22 and then the Malaysian intermediary company will be engineered out, cash already in Holland ready and waiting to go, 2022 better than 2021 and already in the bag so will be a bumper 8 months of cash.

[mattjos] 05/11/2022 15:59

There still seems to be a 'grey area' with regards:

"…..The Exemption Orders do not go further to specify when and how such income will be deemed to have been "brought into" Malaysia"

[scrwal] 05/11/2022 15:50

Not sure the 20% Kazakh tax is relevant as that is on trading profits - the Malay issue is linked to taxation of dividends only.

So they anticipate making an announcement but we still have no idea what it will be as all options are still in play. It could be another treading water comment.

[3800] 05/11/2022 15:42

It does'nt say WHICH November though, does it?

[danmart2] 03/11/2022 18:28

I am surprised the tax issue is still dragging on

[mattjos] 03/11/2022 11:40

Hovering around a 10% yield, if the tax is applied to the 5p dividend and only 3.8p received by investors.13% Yield if tax not applied.In either event, very stingy valuation & remains both a value and growth investment

[zangdook] 03/11/2022 10:39

wassapper was still active a couple of weeks ago but he hasn't posted on here for fifteen years...perhaps if someone proposed a brief up-to-date text he might be amenable to putting it in.

[wind dancer] 03/11/2022 10:10

May I ask if it’s possible to update the news banner that sits between the graphs.
These items refer to 2005!
We’re is a good place now so a refresh would seem helpful.

[zangdook] 01/11/2022 13:42

also, they have a long history of not making announcements at the expected time

[scrwal] 01/11/2022 12:31

The company only anticipates making an announcement. Hopefully there will be a definitive answer for good or bad or we could get a basically still stuck negotiating etc.

[mattjos] 01/11/2022 08:18

Added 17.5

[jeanesy] 31/10/2022 12:20

News should be any day now.

[eggbaconandbubble] 31/10/2022 10:36

Thats looks like the last time we went from 25 - 60p!