Boring_Bernie
16 Aug 2018
at 88p disposal could fuel a re-rating Well, despite today’s trading update saying profit for the year will be at the high end of expectations, I sold out today. H2 was OK, but it sounds like ( profit ) growth over the next 12 months or so is likely to be in single digits, so I was struggling to find a good reason to hold onto St Ives in my portfolio and a nigh on 100% gain in 18 months is good enough for me. Good luck to any holders who still bother reading ii ! BB
Boring Bernie
08 Jun 2018
Re: at 88p disposal could fuel a re-rati... Well, with the sp today giving a selling price of 105 to 106p, I decided to start taking profits here and sold a third of my holding.Over time, I can see the recovery continuing, but, compared to not much longer than twelve months ago, the opportunity doesn't seem as great, hence my reduction.If the company continues to recover over the next couple of years, I can see me selling the next batch at 140 to 150p, and the final lot at 180 to 200p, but, currently, there's a fair way to go before we're worth that.
thirty fifty twenty
22 May 2018
at 96p 8m shares traded so another big day of HUGE volume and the price drifting upwards.....to me that signals a happy buyeras previous posts,would not be surprised if a bid materialised,and regardless a decent re-rating seems underwayAll IMHO, DYOR + BoLSIV is in my top5 hldgs
Boring Bernie
01 May 2018
Re: at 88p disposal could fuel a re-rati... 30-50-20Depreciation isn't, for me, really a concern.The adjusting item I focus on for St Ives sits under "Contingent consideration required to be treated as remuneration". I agree with the company, that the statutory way of dealing with that masks how the business is truly performing, but, in the accounts recently published, that figure sits at ~15 million GBP, so it's wise not to just ignore it. A lot of the businesses we've bought over the years will, given performance criteria being met, payout under that sort of arrangement, Solstice being an example. Depending on how the payments are made ( cash, shares or, most likely a mixture of both ) those payouts will either effect future cashflow and/or eps, so there's a certain amount of kicking the amount paid for companies down the road. The arrangements that we have in place aren't unusual in themselves, but the contingent amounts are, compared to the initial amount paid, quite high. Plainly if the business is growing in all areas and the targets are met, it's not a massive issue, but it does make interpreting the accounts tricky.
thirty fifty twenty
01 May 2018
Re: at 88p disposal could fuel a re-rati... hi BByes i agree that there is always a little bit of exceptional cost with SIV,but for me the big counter is that depreciation is still well above cap ex,so CASH flow is well clear of EPS.and it is evidenced that despite the additional funding of the pension they have had very good CASH flow excluding disposal monies.so now we could have a business with 32m of EBITDA,low cap ex, a mere 20m of pension and debt prob less than 20m next year,so with CASH flow per share of mid to high teens i think the re-rating potential is high.and of course if their marketing biz can gain some traction then the upside is very large. i'd hope they have the ability to increase the divi at the next results.time will tellAll IMHO, DYOR +BoLSIV is in my top5 hldgs
Boring Bernie
01 May 2018
Re: at 88p disposal could fuel a re-rati... Nice to see another disposal reducing the debt and, judging by the sp, the city plainly likes it ( ~92p as I type ).You need to be a little careful with eps and St Ives though. We're one of those companies where there's often a big difference between adjusted earnings and statutory earnings. A lot depends on your point of view, but I think some of those adjustments are valid, but some are not, so you pays your money and takes your pick.Recovery's well under way here from when I bought back in, so I'm close to the point where I'll likely be reducing my holding at some time in the not too distant futu
thirty fifty twenty
01 May 2018
Re: at 88p disposal could fuel a re-rati... thks nk 1999yes p/e of 10 would be 140p
nk1999
01 May 2018
Re: at 88p disposal could fuel a re-rating " P/E of 10 (-114p) "You perhaps meant 140p rather than 114p. But I agree it should be on P/E at least 10, could be 12 as well.
thirty fifty twenty
01 May 2018
at 88p disposal could fuel a re-rating SIV has sold their book division for 20m.This is the 2nd major disposal of their legacy businesses and the CEO calls it transformational.They are now focused with low debt, low pension and CASH flow > cap exEPS is fcsts to be 13p + and with a falling GBP FX fcsts could increase to 14pI think these could easily be on a P/E of 10 (-114p) and at a minimum of 8 times (=112p)I've long thought the price at 86p was been held back by a transaction in the back ground and i expect the company to start a road show with investment magazines to highlight the undervaluation.All IMHO, DYOR + BoLSIV is in my top5 hldgs
nk1999
01 May 2018
News today Disposal of a loss making operation...."1 May 2018 This announcement contains inside information. St Ives plc("St Ives" or the "Group"
Disposal of Clays Ltd. ("Clays" St Ives, the international marketing services group, announces that it has completed the disposal of Clays, its legacy book production and distribution business, to Elcograf S.p.A., a major European printing group (the "Disposal". The total consideration for the Disposal, after costs, was £20.0 million which was based on an enterprise value of £23.8 million (subject to cash, debt and working capital adjustments), and was paid in full in cash on completion. In addition, St Ives has retained the freehold to Clays' operating site in Bungay, UK, which Clays will continue leasing from the Group on a long-term basis. St Ives will also retain the pension liabilities associated with Clays and has agreed to make a contribution of £2.5 million from the proceeds of the Disposal to the St Ives Defined Benefits Pension Scheme. The balance of the net proceeds of the Disposal will be used to reduce the Group's debt. Clays prints monochrome and colour books and provides associated distribution services to UK and overseas publishers. For the year ended 28 July 2017, Clays had gross assets of £34.9 million and reported £77.7 million of revenue and a loss before tax of £1.6 million. The Disposal will strengthen St Ives' balance sheet and result in a more focused Group, consistent with management's long-term strategy to refocus its operations on its Strategic Marketing segment. Matt Armitage, Chief Executive of St Ives, said:"Today's sale of Clays is a major milestone for St Ives, which will allow our senior management team to focus entirely on growing the Group's Strategic Marketing businesses, both in the UK and internationally. "Over fifty years ago, St Ives was founded as a print business. But as our markets and customer preferences changed, we too evolved, reducing our exposure to the commoditised print markets while embracing the digital world, becoming a leader in the marketing services industry through acquisition and organic growth. "This transformation began in 2010 and, following the recently announced disposals of our legacy print businesses, we are now a more focused strategic marketing Group, well equipped to deliver the exciting next stage in St Ives' evolution." "We would like to take this opportunity to thank our colleagues from Clays for all their hard work and dedication over the years, and we wish them every success in the future." - Ends -"
thirty fifty twenty
23 Mar 2018
at 86p very steady during market turmoil SIV price has been very steady since the resultsthere seems to be a steady buyer and given teh chart break out and ptential for re-rating this looks like a good trading play at the mo.All IMHO, DYOR + BoLSIV is in my top5
churjones
16 Mar 2018
Re: H1 results Bernie, I agree with your sentiment on the accounts not really sparkling, as a personal view, i expected better and today have sold a large proportion of my shares at a small profit, i retain a small holding in anticipation of further recovery but do not expect much for 2018 regards
nk1999
10 Mar 2018
Re: NEW ARTICLE: Stockwatch: A cheap share o... Very interesting article.nk
II Editor
09 Mar 2018
NEW ARTICLE: Stockwatch: A cheap share on the up "After I cautioned on £60 billion advertising group LSE:WPP:WPP earlier this week, interestingly at the opposite end of the scale in marketing services, £118 million LSE:SIV:St Ives has declared very good progress and prospects for its strategic ..."[link]
thirty fifty twenty
07 Mar 2018
at 83p the break out is confirmed with volume i thought the results today were fantastic.H1 EBITDA of 20m and growth in the main division,so FY EBITDA of 40m looks conservative.debt is only 42m and has reduced 15m in 6 months so debt could be eliminated within 18 months! the pension is down to only 15m so quite insignificant given scale of business profits.interestingly the dfered consieration liabiloity has been increased which means that the acquisition is performing better than was expected lasy year and also that they must be confident of increased profits being achevied.there are a few annoyances with the resultsbut that's what one would expect.SIV is not the bestest of companies etc.. so i dont expect perfection......it is all about risk rewardfor me if this company was idela then with 40m ebitda nd 40m of debt it would be valued at c. 280m > 200pso allowing for it quirks and write off costs to close th book division a valuation of £200m 140p does not seem illogicalencouragingly > 80p is a major chart break out after 4 years of declinegiven there confidenc en traidng for the year ahead this could rally strongly up to and after the final resultsno doubt with some bumps on the way!!All IMHO, DYOR + BoLSIV is in my top5 hldgs
