Vectura Share Discussion Threads

[justiceforthemany] 10/10/2019 07:42

Anyone attending the meeting?

[gbcol] 08/10/2019 15:30

best1467 - depends where/how you hold your shares. If you hold them in a nominee account/SIPP/ISA they might not necessarily notify you about vote although some do. Default is to vote in favour, I believe. So I suggest you contact your provider. The deadline for voting is approaching fast(if not already passed). Furthermore, the standard option given is to vote either for or against all resolutions. If you want to vote for some (e.g dividend) and against others (e.g consolidation) then you will have to specify your specific voting intentions (that's what I did anyway).

[best1467] 08/10/2019 14:28

Not been given the option to vote as of yet but will vote against share consolidation if given that option

[gbcol] 07/10/2019 15:31

Yes anyone that has done the maths will vote against. It is being presented as a give away but we are actually having our pockets picked.

[bandy nerves] 07/10/2019 15:14

I have 50000 shares in vectura at 84p = �42000 after consolidation,I will be left with 46153 shares at 84p (13 divided into 50000 = 3846.153 x by 12 = 46153 + �3000 in cash which would buy 3571 shares at 84p total 49724 x by 84p = �41768.16 shares that are 276 shares at 84p = �231.84 less not a very good deal we must stop this deal going through they are trying to bamboozle us

[gbcol] 07/10/2019 14:59

Yes I have Polaris, hopefully others will too.

Your point on the market cap and adverse effect re getting back into FTSE250 is a good one. Wish I had thought of that to put in my previous email to VEC IR (to which I have still not received a reply which I find very poor indeed). Is your view that they are committed to do the share consolidation, assuming it passes, or could they rethink/withdraw this resolution?

[polaris] 07/10/2019 14:44

Assume most people here will be voting against the share consolidation? I've just been reading the circular again and the reasoning for it is a little thin to say the least.

The �10M first tranche of buyback will go ahead no matter what, starting on or about the 30th October, with the second following at an unspecified future date.

The only reasons for the consolidation for me are the fact that the combined effect of the DRIP and buyback will lead to buying pressure and a likely rise in the share price The share price should also react to the increased operating EPS (before the accounting adjustments).

On the other side is that the cash return will lower the market cap and make it that much more difficult to get back into the FTSE250 (position 350 is �620M and position 325 still around �720M) as the market cap will be around �520M.

[base7] 04/10/2019 13:30

Good news just announced in that GSKs claim V Sandoz has been dismissed by UK Court,which is unlikely to make much difference to our share price Hopefully HIK will soon update the Market on our Advair generic progress & we may even appoint a new CEO before Xmas !

[gbcol] 04/10/2019 09:49

Not that it will make any difference but I voted against the share consolidation which I consider to be a pointless waste of time and money (and worse, actually costing shareholders a loss on their holdings). I did email VEC Investor Relations prior to voting but didn't get a reply (which was disappointing).

[justiceforthemany] 03/10/2019 17:55

General Meeting next Thursday (10th)
Record date for Special Dividend and Share Consolidation next Friday (11th).

[base7] 30/9/2019 20:58

No Tax from either as majority in ISA s with small amount in sipp

[0815exitstrategy] 30/9/2019 19:47

Oh, 720GBP for re-entry into FTSE250?
Didn't we fall out of FTSE250 at 625GBP? I have hoped this is the mark we need to reach for re-entry.

[polaris] 30/9/2019 17:59

Auto-entry into FTSE250 will be at position 325, around 720M GBP...a long way to go to reach that. That'll be even further away once the special dividend is paid. Market cap will be around 535M GBP as things stand.

[polaris] 30/9/2019 17:54

Not from me - i'm on SBs for my current holding. The tax man can go take a very long jump... ;-)

[andrew97] 30/9/2019 17:07

I think all the calculations I have seen here ignore the tax impact (HMRC will want their share above a total dividend income (excl pension and ISAs) of £2k.

[justiceforthemany] 30/9/2019 14:07

Important point people are overlooking here is the FTSE ranking. Currently this is around 360 and so Vectura are on the cusp of rejoining the FTSE 350 which triggers a mass of buying from tracker funds.

[base7] 30/9/2019 12:04

I agree with all that has been said today & reckon the Chairman & our advisors believe we should vbecseen to be reducing the number of shares in issue by this device & the proposed buy backs to improve EPS ,in due course.Still no news on a CEO ,after almost 4 months ,& I do speculate that whoever is pulling our strings currently is planning for a disposal .Like several of us here I have a large stake & Will be taking the cash.News expected over coming weeks could push our share price higher following the 'consolidation ',special dividend & start of buy backs.

[rogerrail] 30/9/2019 10:36

Agree, share consolidation seems a pointless exercise. Firstly the cash imo is not properly reflected in the share price as its "dead" money. Secondly I would think it would have been better for VEC to run a tender offer. Puzzling as to why they ruled this out. Small shareholders are less inclined to participate allowing HBM to tender for more than the standard allocation.

[gbcol] 30/9/2019 10:03

Thanks Polaris but firstly, as a holder for best part of 20 years, my exit price is well north of that level (closer to the 160p I should have taken when it was there to be had! Or at least, well over £1)

Secondly, I can see the benefits of the special divi but by combining it with the share consolidation they have effectively given with one hand and taken away with the other. Furthermore, it seems to me that the share consolidation is a totally unnecessary waste of time and money. I've not personally come across a special divi being combined with a consolidation before.

I have been topping up at sub-80p levels in recent months but as I am heavily invested here already, I wasn't prepared to plough back the value of the divi when I had the chance (another in the long line of errors that hindsight has revealed!)

Maybe there will be a dip in share price after the ex div date which will give a buying opportunity.

[polaris] 30/9/2019 09:48

GBCol - I went through the same process and the difference today is the premium people are willing to pay on top of a notional 78p conversion price. That's if we assume no price movement after conversion and the special dividend is 1/13 of the price.

The EPS rises by 13/12 after the consolidation, which means the share price should react similarly. What we are seeing now is the price premium people are willing to pay for the 6p dividend plus the increased EPS. If you want to take advantage of that before the consolidation then sell...if you feel a 9% premium adequately takes into account the 6p dividend plus the increased EPS.

[gbcol] 30/9/2019 09:33

Re special divi and consolidation

Just run some figures (based loosely on my holding and the current shareprice, I realise share price is actually 86p ATM but bear with it)

So if I currently have 150,000 shares at say share price 85p = £127,500
I would get divi of £9000
Share consolidation would leave me with 138,461 shares. VEC say this is to keep share price relatively stable. Therefore would be worth 138,461 x 85p = £117692. Add £9k divi to that and I end up with £126,692 which is circa £1k less than I had at the start.

1. Am I missing something?
2. Why on earth would I vote to lose money?

[polaris] 30/9/2019 09:25

see


There is a $5m milestone on approval of QVM149 and royalties at rate around 3%, taking into account the comments on low single digits and previous agreements.

[taffy100] 30/9/2019 08:44

Read the RNS.s (about) Licensed from Vectura. I don´t know if there are milestone payments due but assume there will be royalties due from sales when approved