Blanketstacker
01 May 2018
Re: H1 Results Tuesday 1st May rofit" target="blank" rel="nofollow">[link] down a third, but dividend held and now only covered x1. Also CFO has gone after two years, but this is not on ii yet!!!
Hydrogen Economy
30 Apr 2018
H1 Results Tuesday 1st May This one is going to be a bit nerve wracking, after the Jan TU, the fiasco with sale of the book division, weak performance in Freight and the failure so far to generate a profitable PMP business.Hopefully things have improved since then, but I would not be surprised if weather, the date of Easter or some other barely connected excuse is trotted out to explain weak numbers. Hopefully any bad news is all in the already dismal share price. H2 hoping for the best, but steeling himself for other outcomes.
marktime1231
20 Apr 2018
One way or another Connect down hard today, Clipper up even harder.No news or comment on either.I agree we should reset to a sustainable dividend but some genuinely good news about the business would be even better. It can be done, others are doing it, so do it.
Hydrogen Economy
14 Mar 2018
Master Investor Interesting views on CNCT concluding that a divi cut could well happen and it would not necessarily be a bad thing.I think there may well be a case to cut dividend and mid-long term it would be beneficial to SP, but the big question is whether they can make PMP profitable and get a grip on Tuffnells before the news business disappears into the ether.H2[link] I would say there’s a good chance that Connect’s dividend will be cut at some point in the next few years. However, I don’t see any obvious reason why the dividend should be suspended or cut drastically. If the dividend was cut by 50%, here’s what would happen: 1) It would free up about £10 million per year which could be used to reduce debt, pay down the pension deficit or fund the integration of Smiths News and Tuffnells; 2) the dividend would be covered twice over by both profits and free cash flows; and 3) at the current price the yield would still be around 7%. To me that looks like a very attractive proposition, and if I can get over my dislike of large pension schemes then I would be willing to invest in Connect Group, probably at anything under 100p."
The Pilgrim
17 Feb 2018
Re: Curate's egg Connect books paid £5.1m for the remaining 49% of Wordery only 18 months ago .Now they sell the entire enterprise for £6m...
FRTEB
16 Feb 2018
Re: Curate's egg " It will be interesting to see if Aurelius make a go of it. " I'd have been mildly interested if they'd paid the original price agreed. Now I couldn't be less interested. Business is hard enough without having to mess about with people reneging on signed contracts. Good riddance! I'm not bitter! CNCT up 3p.
TX2
15 Feb 2018
Re: Curate's egg I think it was was as much the debt involved in financing the books division that Connect was interested in removing from its balance sheet rather than just the net price obtained.With the declining number of small retail book shops it is difficult to see much future for the Bertrams wholesale side & its online retail Wordery division had a hard job against Amazon;even though its prices are generally a little cheaper.It will be interesting to see if Aurelius make a go of it.The UK book market is much more competitive than that in Europe,simply because in many European markets there is retail price maintenance so small bookshops can have cosy 50% protected margins (ie 100% mark up).There is a downside for the public with RPM.Books are expensive,print runs are small and fewer titles get published.
FRTEB
15 Feb 2018
Re: Curate's egg I've just read the RNS. £6m isn't as good as £11.6m but it's better than £0m! I suspect this may have been part of the Aurelius game plan from the outset. A lesson for Theresa May et al in the art of negotiation - be prepared to walk away to get the best deal. Aurelius did, and they have! But at least now, as per the RNS, "proceeds of the sale will be used to reduce the Group's debt and the Group's attention can now be wholly focused on the integration and transformation of its core businesses". Onwards and upwards etc.
Hydrogen Economy
15 Feb 2018
Re: Curate's egg BlanketstackerWell spotted. I think this should be very positive, removing significant uncertainty. The 6m price, down from 11.6m is a reduction of around 2.5p per share for connect, much less than the drop seen in wake of the problem being announced. Some of that was disappointing numbers but the books issue exacerbated the drop so hopefully we can expect some recovery.H2
Blanketstacker
15 Feb 2018
Curate's egg [link] news - Books division is sold.Bad news - Sold for half the price originally agreed.
marktime1231
08 Feb 2018
Trim ahead of payday Sold off a chunk today for an ugly loss ahead of tomorrow's dividend payday, I reasoned that few people are likely to be reinvesting and some might be choosing that moment to exit. Cue a bounce ...
zip00
02 Feb 2018
Another fine mess This BOD seem prone to error after error, BOD changes need to happen and quick, starting with the chairman.The paper distribution business is at best static, with marginal decline, but still very profitable. However all their plans to broaden their base seem to go wrong, forecasts have been consistently broken, and somewhat pathetic explanations given as to what has gone wrong.Now this book sale fiasco, what a pathetic RNS, what the heck are the BOD doing all day, pity it is such a small company, otherwise a Melrose, Cinven etc would gobble them up, make the necessary changes and move it back into the market at a massive profit, perhaps the BOD in Swindon, are living too cosy a life.Wake up!!zip00
Hydrogen Economy
02 Feb 2018
Aurelius Omega Position Gives some insight into why they pulled out, or at least the position they are taking. "our banking partners confirmed that they could no longer provide financing for the proposed acquisition" sounds like buyers regret blamed on others.H2[link] February 1, 2018 – Aurelius Omega Limited (“AOL”
, a group company of AURELIUS Equity Opportunities SE & Co. KGaA (ISIN DE000A0JK2A8) refers to the proposed acquisition of the books division of Connect Group PLC (“Connect Books” pursuant to a share purchase agreement dated 20 December 2017.Very shortly after signing of the transaction, we were informed that there was a severe under-performance of the Connect Books business for the month of December 2017, which led to a significant decrease in forecasted EBIT for the financial year 2017/2018. This was a marked deviation from the forecasts provided to us by Connect Group before signing of the transaction. As a result of this change, our banking partners confirmed that they could no longer provide financing for the proposed acquisition.We have made several attempts to find a mutually satisfactory solution with Connect Group and the banking partners, but it now appears unlikely that the transaction will proceed.
Hydrogen Economy
02 Feb 2018
Re: Books Sale SchweeThe Germans must be wetting their lederhosen at such a pathetic statement today from Connect. Indeed a total non-updateAfter 10 days to consider with your advisers I would expect them to have at least some thing to say beyond.... "As a result, Connect Group is considering with its advisers what action it will now take in light of this development." Maybe the advisers haven't yet sucked their fill out of this one.You may be right about the agreement not being watertight, maybe some walk-away criteria. If so I hope that they are not using the same advisers who got them into this mess!H2
schwee
01 Feb 2018
Books Sale The Germans must be wetting their lederhosen at such a pathetic statement today from Connect. They have had a couple of weeks to decide what action to take. Can only conclude the contract for sale was not watertight.
