Just read the statement and the US market is key re the share price Concerns on their ability to replicate the success of their UK travel business stateside, have been the main depressing factor on the share price
In today's update, there is some evidence of trading (stateside) moving in the right direction. |
Not sure about that El |
Per post #661 should bounce today, the travel hubs are performing strongly and north American expansion underpins LfL growth, should be rated higher than SSPG IMO. Raise 100m from retail sale pays down debt and increases buybacks. All good. |
Good enough trading stmt this morning |
Solid trading at SSPG reported this morning, could be a big up day for them and read across to us. 5% rise today is my hope. Back on the up. |
Yes I thought that
I wonder if we own some of the properties? Prime locations I guess |
Daily Telegraph have an article on potential buyers. A Mr Putman owner of HMV is named. The article indicates a price tag of £100m. Presumably he will use the premises to sell vinyls but that would indicate that the on-going trade has no value? |
Hobbycraft interested in the shops I read |
When we’re on our holidays, price is the last thing on our minds. Convenience is key. High margins, solid revenue.
I wouldn’t be surprised to see us taken out |
Well I said..fleeting bounce.. |
SSPG trades on 14x versus 12x at WHS. clearly we need to see the value that can be extracted from a retail sale but i think there is upside here. A pure play travel outlet hub should be rated as high or higher than SSPG |
Trading update Wednesday I believe? |
More High street gloom when will it end. |
WH Smith they are depressing, expensive, poorly laid-out shops staffed by people with zero interest in the brand, service or profit. It’s been managed out of existence and it’s entirely their own fault..For years voted the worst customer service( Which magazine) on the high street.. Only fools queue to spend money.. |
Good move.
Will be interesting to learn who is interested in buying the shops? |
Truly global company now though with a large US presence. Even more so with this sale of UK high street shops. |
justice, many UK retailers have been de-rated sharply over the last 6 months - from Greggs to Marks to ABF (Primark) and Dunelm.
The current rating for SMWH looks about fair v the wider sector. Some at least fleeting bounce at the Monday open would expect. |
Shorts getting burnt Monday morning. |
News out regarding selling some UK stores. |
https://x.com/markkleinmansky/status/1883095820024893723?s=46&t=QwBTpUxZhS26Ts05345o0A |
It is worth breaking down the net debt of £997m:
lease liabilities represent the majority at £626m, with an average life of 4 years; the repayment of this will be covered in arriving at the earnings of the business through depreciation and interest over the next 4 years (for example over £180m lease payments were covered in FY24 in arriving at earnings)
£371m is a convertible bond (convertible at £24.99 on 7 May 2026), if conversion does not take place, then it must be repaid, this is currently covered by a revolving credit facility that expires 3 years after the conversion date. If necessary, this could be paid down over approximately 3 years after May 26 from free cash flow(FCF) after paying dividends (FCF in FY24 was £144m and dividend payments £41m).
The balance of the net debt is £61m.
In addition, there is the £75m of cash refund from the pension buy-out (£50m of this is earmarked for share buybacks) and another £12m held in an investment fund for 2 years. |
Net debt is eye watering. |
Missing consensus forecasts by ~2% likely explains the price drop today, still a good LT income investment. Dividend well covered by earnings and free cash flow. |
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