Talktalk Telecom Share Discussion Threads

[anthony81] 22/11/2016 07:43

The Companies Act 1985 section 263 states 'a company shall not make a distribution except out of profits available for the purpose'.
A company’s profits available for distribution are its accumulated, realised profits

REALISED PROFITS

[anthony81] 22/11/2016 07:38

This argument appears to hang on the term of "realised profits" if there any other factors I stand corrected.
However is "operating profit" considered equal as "realised profit"?

New Dividend price 2.2218 Pence
Final dividend expected to be in line with FY16 and broadly covered by operating free cash flow
A company’s profits available for distribution are its accumulated, realised profits
Realised profit of £21million
29 Million Of the £50 million “broadly covered by operating free cash flow” could be considered as illegal Dividend or would be viewed as salary.
True Dividend would be the Realised profit of £21million thus a reduction of 58%
5.29 - 58%=2.2218 Pence

Dividend cannot be given from credit or if the profit and loss sheet show a loss over a number of years

The Companies Act 1985 section 263 states 'a company shall not make a distribution except out of profits available for the purpose'.
A company’s profits available for distribution are its accumulated, realised profits, so far as not previously utilised by distribution or capitalisation, less its accumulated, realised losses, so far as not previously written off in a reduction or reorganisation of capital.

[anthony81] 22/11/2016 07:37

cash flow Dividend are Illegal Dividend


Final dividend expected to be in line with FY16 and broadly covered by operating free cash flow

The Board has recommended an interim dividend of 5.29p (H116: 5.29p), which will amount to £50m and be paid on 16 December 2016 to holders on the record at 25 November 2016, with the ex-dividend date at 24 November 2016.
£21 million retained profit after Taxation,so that leaves £29 million from cash flow.

What profit are we talking about in relation to the guidance below?

Or is the dividend illegal? Want to understand more.

Guidance for accountants preparing company accounts and auditors on dividend payments which may be illegal

The Companies Act 1985 section 263 states 'a company shall not make a distribution except out of profits available for the purpose'.
A company’s profits available for distribution are its accumulated, realised profits, so far as not previously utilised by distribution or capitalisation, less its accumulated, realised losses, so far as not previously written off in a reduction or reorganisation of capital.

Further restrictions are placed on public limited companies.
Under section 277 of the Companies Act 1985, where a shareholder knows or has reasonable grounds for believing that a dividend was improperly paid, he is liable to repay it to the company.

Sections 829 to 853 of the Companies Act 2006 which relate to 'distributions' become effective on 6 April 2008 and replace sections 263 to 281 of the Companies Act 1985.

The Companies Act 2006 section 830 states 'a company may only make a distribution out of profits available for the purpose'. The company’s profits available for distribution are as stated above.

Section 831 of the Companies Act 2006 imposes further restrictions on public companies and section 832 places conditions on investment companies.

Under section 847 of the Companies Act 2006 if at the time of the distribution the member knows or has reasonable grounds for believing that a distribution was unlawful he is liable to repay it (or that part of it, as the case may be) to the company

[anthony81] 21/11/2016 18:38

Who gets what in Dividends?
Working on £50 million pounds for everyone

65% of Talktalk is held between 4 investors, who will receive £ 32,500,000.00 in dividends between them in
December 2016

Co-founders Charles Dunstone (30.8% as of 15/4/16) £ 15,400,000.00

David Ross (12.2% as of 15/4/16) £ 6,100,000.00

Capital Group of Companies (15.3% after today's holdings notice). £ 7,650,000.00

Invesco holding of 6.7% (as of 15/4/16) £ 3,350,000.00

That leaves 35% or about 328,125,000 share in circulation £ 17,500,000.00

[strutt12] 21/11/2016 17:52

Having recently reduced their short position from 1%

[anthony81] 21/11/2016 16:51

Just to start Tuesday off on a good note
TalkTalk cautioned investors that its full-year earnings will come in at the lower end of its forecast, as it reported half-year results showing its continuing struggles in its core broadband market.

[solarno lopez] 21/11/2016 12:49

Profits to be at the lower end of the range for the year

[anthony81] 21/11/2016 12:06

TalkTalk cautioned investors that its full-year earnings will come in at the lower end of its forecast, as it reported half-year results showing its continuing struggles in its core broadband market.

[anthony81] 21/11/2016 12:03

While it was the October 2015 data breach that made these particular headlines, TalkTalk customers had fallen victim to scams due to a previous breach.
The regulator’s investigation found there had been two SQL injection attacks in the three months prior but TalkTalk was not monitoring those particular webpages.
Whether the company ignored the warnings or was simply ignorant, businesses should investigate any signs that an issue exists.
6. EU GDPR is looming
The ICO’s fine is a record amount but TalkTalk is fortunate that the breach took place before the EU GDPR comes into force in May 2018.
The new regulation will see potential fines increase to four percent of global turnover or €20 million, whichever is higher, meaning TalkTalk would have faced an even more significant amount.

hxxp://www.information-age.com/7-key-lessons-talktalks-data-breach-123462859/

[1gw] 21/11/2016 11:56

It feels like you're reading the interims as you go along anthony81?

On that point in your post 2052, the $264m contracted expenditure is down from £362m a year earlier and £318m 6 months earlier.

And given they did £900m revenue just in the first half of the year, what's the issue? It would be bizarre for a company like talktalk not to enter into multi-year agreements wouldn't it?

[bookbroker] 21/11/2016 11:51

Harding is so grossly overpaid for a shoddy share price performance it is beyond believable, almost, astounds me that she is still here, I admire her tenacity, but as a shareholder, and likewise herself which is somewhat irrelevant when she is collecting high dividends, it begs the question as to how much longer she will remain here, needs Ross to come back into the fold and sort the company's finances!

[anthony81] 21/11/2016 11:47

RNS Number : 1472P
TalkTalk Telecom Group PLC
15 November 2016

18. Commitments
The Group has in the normal course of business entered into various multi-year supply and working capital agreements for core network, IT and customer equipment.

As at 30 September 2016, expenditure contracted, but not provided for in these financial statements amounted to £264m ......Hmmmmm

[anthony81] 21/11/2016 11:34

Headroom getting smaller
We have £994m of committed credit facilities and as at 30 September 2016 the headroom on these facilities was £162m.
That means talktalk can borrow money up to £1.156 billion pounds

[1gw] 21/11/2016 11:33

Well I guess we can all read the interims. How about:

"Strong growth in H1 profits: EBITDA(1) £130m (+44% year-on-year);"

"We expect to deliver further strong progress in EBITDA during H2..."

"...we expect year end leverage to be significantly lower than at the end of FY16 and trending towards our target."

"...we expect to drive a return to retail subscriber and revenue growth in FY18."

Perhaps today's holdings notice from Capital suggests they're prepared to give management the benefit of any doubt on these statements...

[anthony81] 21/11/2016 11:20

Revenue declined by 3.9%


Revenue for the period decreased by 1.1% year-on-year to £902m (H116: £912m), and by 3.2% excluding Carrier revenues of £72m (H116: £55m). On-net revenues declined by 3.9% reflecting the reduction in the On-net base in FY16, mainly due to the decision to disconnect 72k non-paying customers during H116 and a 95k impact due to the cyber attack in Q3.

[anthony81] 21/11/2016 11:11

£994m Problem
The Group is financed through a combination of bank facilities, US Private Placement Notes, retained profits and equity. Committed facilities at the half year totalled £994m

[garycook] 21/11/2016 11:11

If you are Short anthony86.I advise you to take your profit now and move on !!!

[anthony81] 21/11/2016 11:02

8.3 declarations
Just showing evidence on Institutional buying and selling for the motive of supporting a share price
Quite rightly that is not happening here.
My intention was to indicating that it does go on even when an 8.3 declarations is NOT provided.

[anthony81] 21/11/2016 11:00

8.3 declarations
Just showing evidence on Institutional buying and selling for the motive of supporting a share price
Quite rightly that is not happening here.
My intention was to indicating that it does go on even when an 8.3 declarations is provided.

[gotnorolex] 21/11/2016 10:56

TalkTalk says that it has added an additional 100Gbps of data capacity to its core network to help cope with the demand the company expects to see from Amazon’s The Grand Tour, featuring the ex-trio from BBC’s Top Gear, headed by Jeremy Clarkson. In total, the company has added a total of 200Gbps (100Gbps is for The Grand Tour, while the other 100Gbps is for other general increases) specifically for Amazon video content.

[anthony81] 21/11/2016 10:55

strong selling pressure today 7.5 pence so far

[rathlindri] 21/11/2016 10:54

anthony8121 Nov '16 - 10:44 - 2039 of 2041 0 0 (Filtered)

[1gw] 21/11/2016 10:52

anthony81 - what have 8.3 declarations got to do with anything here? 8.3 declarations are being made on SEPU because they are required now that SEPU is in an "offer period". This is nothing to do with manipulating the share price it is a legal requirement for holders of more than 1% of the shares to disclose their opening position and daily dealings. And as a matter of fact I would say there has been relatively little daily trading disclosed through these 8.3s on SEPU since the offer period started.

Are you suggesting talktalk could soon be in a similar "offer period"? Now that would be good news for the longs.

[1gw] 21/11/2016 10:48

Working hard over here this morning anthony81.

Any small investors thinking of shorting this one might want to consider the following:

58% of the shares are held by just 3 individuals/institutions, the 2 co-founders Charles Dunstone (30.8% as of 15/4/16) and David Ross (12.2% as of 15/4/16), plus the Capital Group of Companies (15.3% after today's holdings notice). If you also add in the Invesco holding of 6.7% (as of 15/4/16) that gives 65% held between 4 investors.

75m shares (about 8%) were out on loan on average during October according to Euroclear data with 4.4% disclosed short positions on the FCA spreadsheet.

Perhaps the best-known of the talktalk shorters, Odey, has been steadily reducing his short dropping from 1.5% in April to just 0.6% as of 16th November.


So if those 4 investors choose not to sell you have only about 1/3 of the shares actually available to close shorts and you have 8% of the shares already out on loan (and therefore potentially supporting existing short positions). You have Odey steadily closing his short.

Seems to me like there is potential for an almighty squeeze if you get some positive news (such as corporate activity).

[anthony81] 21/11/2016 10:44

Institution trying to hold the share price up?
Is this unrealistic view point?
Just go on to the Sepura (SEPU) forum and look up how many- Form 8.3- are announced on a daily basis to manipulate the share price action