Sureserve Share Discussion Threads

[rj777] 10/11/2022 16:41

Let’s hope so Rivaldo. I’m not a dividend investor personally, but it still doesn’t sit right with me what’s happened here when looking at the figures in question.

Hopefully some positive news to come in the near future.

[rivaldo] 10/11/2022 15:35

You asked for "a clear answer" on the dividend withdrawal rj77. SUR have been perfectly clear.

If they've been intending to make large acquisitions then £1.6m is a material sum. At the time they had £16m cash (now they'll have more), and of course the sale proceeds were only theoretical at the time and still are.

We can only make assumptions as to the size of potential acquisitions. But I suspect that with the even larger cash pile that should be enough to enable dividends to be resumed. Unless acquisition news comes first :o))

[diesel] 10/11/2022 15:33

I don’t think there is anything new to add to the divvy issue, if it is an issue, personally most of the market has been hit hard whether or no they have a divvy policy.

[rivaldo] 10/11/2022 14:52

Rising nicely now.

SUR definitively stated as regards the dividend that "capital would be better deployed in driving our growth plans by retaining cash to invest in strategically enhancing acquisitions".

I would guess SUR had an acquisition or two in mind which didn't happen for whatever reason, as often happens.

I would also hazard a guess that the dividend will return in the Jan'23 prelims, unless a large-ish acquisition is on the cards.

[rj777] 10/11/2022 13:18

I’d love a clear answer on why the dividend was cut in the first place. Saved them £1.6M which is negligible considering the £23m cash in the bank, £15m overdraft facility, and with 2 businesses for sale which will add further to funds. These are the types of decisions that make absolutely no sense, and lead to shareholders questioning motives of those in charge.

[marktime1231] 10/11/2022 12:29

Thanks rivaldo. It's a possibility but even more importnat than dividends is how well the business is doing and the outlook which as you say looks excellent. So they are in the middle of doing an acquisition too. And seem to be in a strong negotiating position. Whether or not Smithy would "love" to buy some shares aren't the key people getting voted awards anyway?

[knowhow77] 10/11/2022 12:22

Thanks Rivaldo no mention of any aquisitions in the pipeline obviously

[rivaldo] 10/11/2022 11:55

SUR came across very well imo.

The business itself is obviously in excellent shape, is on very cheap fundamentals and has a large cash pile. Plus defensively it has inflation protection, huge forward revenue visibility and many multi-year contracts which are getting longer in duration as a matter of policy from local authorities.

As for the points raised:

- re minimal director share buying, the directors would "love" to buy more shares, but have been in a permanent closed peiod due to a combination of results dates and both business disposal and acquisition negotiations. I can completely understand this (I used to be in a similar position when I worked in the City)
- SUR have rejected a number of offers for the businesses for sale, due to either price or unsuitable buyers. They're under no pressure to sell as these are highly profitable businesses, and SUR already have a large cash pile as we know
- the dividend will be reviewed annually (as previously stated), i.e before January's Board meeting. So a resumed divi looks a strong possibility imho.

[johnrxx99] 10/11/2022 07:33

Follow the winners, ditch the losers.

[knowhow77] 09/11/2022 15:50

Well done Rivaldo will be interesting to hear the answers but I’m not expecting anything to be revealed

[rivaldo] 09/11/2022 15:34

There's a post trading update group investor call with SUR via Capital Access at 10.30 am tomorrow. I've put forward some questions reflecting possible dividend reinstatement, acquisitions, lack of director buying etc, so hopefully they'll receive some sort of response :o))

[johndoe23] 09/11/2022 14:50

Mr Smith basically just said some waffle about the share price has outperformed AIM in the past, its a tough market, they are doing all they can to drive share price higher.

[doobz] 09/11/2022 14:19

John, what did they say in their response

[rj777] 09/11/2022 12:06

We will just have to take it all on the chin until there is either a positive acquisition, or hopefully promising figures in the January results. Would be nice to see a cluster of directors buying at these levels, but Peter Smith has not bought any since he became CEO. He only holds the 95,837 shares he was gifted in April 2021 as far as I can see. The lack of news flow during his tenure has killed all momentum in the share price. The trading updates and results periods are a key time for him to sell the positives of the business, but the latest update to the market was the bare minimum from him. His new growth strategy certainly isn’t being reflected in the share price during his reign. Let’s hope that changes asap.

[johndoe23] 09/11/2022 12:03

I emailed the company this morning with my thoughts. Just received a response from Mr.Smith...

[tim1478] 09/11/2022 11:44

Any idea why the big fall today?

[knowhow77] 09/11/2022 10:17

Ideal time for a 2p dividend January

[johndoe23] 09/11/2022 10:04

This boars giving a great demonstration in how to destroy shareholder value

[vfast] 09/11/2022 08:31

That could end up as a very good buy, sentiment will turn a some stage.

[angersharkz] 08/11/2022 17:03

Bought another handful at 74p. If the market continues to discount these shares further I’ll be buying more.

[hsmith_08] 08/11/2022 15:56

Getting closer to the 60s rather then the 80s now. No progress made in the past 18 months whatsoever. Bring back Bob Holt… someone who knows how to drive a share price forward!

[vfast] 08/11/2022 15:12

Why...Mr Smith & Co.

This is a good company with so much going for it and that is the frustrating part of it all.

[knowhow77] 08/11/2022 13:00

30p down since January

[vfast] 08/11/2022 12:21

Yes, investors appear to be still selling however at some stage investors will come back in and the share price will bounce back.