Steppe Cement Share Discussion Threads

[hairflick] 14/12/2023 19:02

Isn’t this what happened last year? The uncertainty on how to get the dividend out without being clobbered by multiple tax regimes. Did they learn nothing from that?

[eggbaconandbubble] 14/12/2023 11:09

Who - Steppe or Deloitte's?

[wilo101] 14/12/2023 09:01

they are incompetent fools,

[zangdook] 14/12/2023 08:50

They said "new tax legislation, which has taken effect in Malaysia, the Netherlands and Kazakhstan" so it sounds like a perfect storm.

[aleman] 14/12/2023 08:24

I'm not aware of any UK tax problem for individuals. I think the problem might be recent Dutch changes to withholding taxes? There are Kazakh withholding taxes but I think the situation there is stable and I think last year's Malaysian problem of passing new tax law before expected exemptions got sorted was ironed out.

[xasy] 14/12/2023 01:07

Aleman 5881 - it is not a problem of UK tax for individual shareholders which is holding up the dividend.

[scrwal] 13/12/2023 17:56

Any cash relating to the dividend won't be held in the holding company as it hasn't been moved up the various subsidiaries yet because of the tax problems so there cannot be any form of capital distribution made as those relate to the holding company.

[aleman] 13/12/2023 13:21

That seems a reasonable presumption to me.

I'm surprised at the lack of buying after they've confirmed cash has been set aside to pay a 2 to 3p dividend or alternative form of return to shareholders. That's for last year. The current year generated little in H1 but H2 is looking much better and should see more added to the 2 to 3p, however we end up getting it.

I'm awaiting Kazakhstan's November cement production, hoping it will be a new record for that month, like September's. On the back of this, I'm anticipating a satisfactory H2 for STCM that will show in the January update.

[hairflick] 13/12/2023 13:00

Presumably if they’re held in an ISA, there’d be no CGT to consider?

[aleman] 13/12/2023 12:45

I note a capital return was mooted as an alternative at the interims in 2022 so would consider this to be a possible alternative to a dividend if the tax can not be sorted. A capital return is not dividend income but is a return of your invested capital that UK tax authorities treat as a reduction in the purchase price of your shares, so you pay a higher capital gain when sold rather than dividend income tax when you receive the payment.

[wilo101] 13/12/2023 12:41

There are many solutions and many good ways, needs to be worked on by real experts, not Deloitte's and the Big 4

[zangdook] 13/12/2023 12:26

If they have tax concerns about extracting money to pay a dividend, the same concerns would apply with a buyback or a tender offer. I take them at face value.

[andydaf] 13/12/2023 11:21

Reading the rns seems to me a tender offer will be incoming in the new year.That will reduce the free float by ten or fifteen percent thereby smoothing the process of taking it private next year.FWIW i am going to top up,seen exactly yhe same tactics at rotala.Cant blame the concert party,if i was in their shoes i would do exactly the same.GLA

[wilo101] 13/12/2023 10:28

In the land of the blind the one-eyed man is king, the CEO and Deloitte's are not the right guys for this job and have made a horlicks of it

[lloydypool] 13/12/2023 10:27

With shares at low 20’s I’m surprised the amount set aside for divi isn’t used as a share buyback pot. Circa 5/10% of the shares could be bought back boosting the share price given the relatively low free float and those needing income could sell a few.

[pjmurf] 13/12/2023 10:16

I am with you in the interpretation but am holding off buying as I don't have a clue how long simplifying the structure may take, what is involved and at what cost. If it is a drawn out process could see it sliding further. Anyone willing to share their experience or opinion on this?

[riskvsreward] 13/12/2023 10:02

This rns is at least a month too late but it is better late than never

[fozzie] 13/12/2023 09:57

Amazing how two shareholders read an RNS and take from it two completely differing meanings. FWIW I am with you zang and have bought a few more this morning.

[zangdook] 13/12/2023 09:30

I read that as broadly positive and topped up - we have money, we want to give it to you, we're not going to give it to the taxman if we can help it, hang in there.

[tag57] 13/12/2023 09:21

New RNS out.
So divi on hold for the foreseeable.

[1knocker] 08/12/2023 11:49

If the present corporate structure as a public company is fiscally disadvantageous and difficult to improve, doesn't that make the attraction of taking the company private all the greater to the few big shareholders who call the tune?

[aleman] 08/12/2023 11:04

Benign inflation figures saw another 0.25% cut to 15.75% in the Kazakhstan interest rate at the end of November. Every little helps. The central bank's inflation forecasts were maintained at 7.5-9.5% and 5.5-7.5% for 2024 and 2025 , respectively, so the interest rate is expected to fall considerably more in months ahead. (Inflation latest was 10.3% and the target is 5%. High was 21.3% in Feb.) The stockmarket loved the news, hitting a new high and is up over 30% since the start of the year.

[bishan bedi] 08/12/2023 10:11

Potentially 25% Mattjos!

I'm quite close to talking myself into buying back in to these