Rhigos
28 May 2015
Re: WB looks like the divi is ok until 2... gamesinvestor,Thanks for link to Telegraph article. Another case of profit warnings coming in a set of 3. I remember a fund manager saying in an interview on TV that he had a firm rule, sell all shares in a company at their first profit warning, as normally followed by two more profit warnings!No sign of SP reaching my limit sell price of 590 today. I think I will cancel it and sell at market price.
gamesinvestor
28 May 2015
Re: WB looks like the divi is ok until 2... "that settles it then"LK -- I hear you m8 -- I already bought some at 140 and some more at 150. Will add more after the Grexit -- if it happens.Games
Rhigos
28 May 2015
Re: WB looks like the divi is ok until 2... LKH,I remember having a look at TET when you mentioned in another posting. As you probably remember I have a large holding, currently after taking some profits, my 2nd largest in JMAT, Chemical rather than Specialist Chemical sector. I did not invest in TET as SP has been broadly moving sideways for 17 months. Prior to that SP doing very well. Not that I would presume to advise you, but have you thought of taking some profits on TET? Today I significantly increased my holding in FCS, being a geographically diversified investment trust in smaller companies I regard it as fairly low risk. Is at a 1.1% premium to NAV+div so popular. Over 7 years FCS up 156% (excluding dividends) compared with FTSE 100 total return (inc div) of 50%. Bit heavy on USA companies but I believe smaller companies not so overpriced.
idontwanttolose
28 May 2015
FAO LKH WB looks like the divi is ok until 2... LKH how the heck would I make my cider @ 18% abv without sugar??????You would not be on the flybridge after two bottles of it containing residues of Tate & Lyle and that is a fact!!!
LK Hyman
28 May 2015
Re: WB looks like the divi is ok until 2... Games,"Might (does not constitute a recommendation) be better to invest in something that is moving away from the health impacts of sugar and the artificial aspects of some sweeteners."Try Treatt (TET), m8. They'll do you a nice line in a product that takes away the nasty after taste you get if you use Stevia, which is one of the natural products which are replacing sugar to an increasing extent. TET is my largest shareholding by a country mile.LKH on the flybridge that settles it the
gamesinvestor
28 May 2015
Re: WB looks like the divi is ok until 2... "I did read an article recently that the Chinese were undercutting them with cheap sugar substitutes."Rhigos, in the Telegraph article this morning it stated that Splenda profits had dropped 76% to £16M --- Ouch --- That part of the business is all but decimated.here is the article -- [link] (does not constitute a recommendation) be better to invest in something that is moving away from the health impacts of sugar and the artificial aspects of some sweeteners. Difficult to say if Tate will be in a long term negative trend, but it doesn't look good in the soft drinks industry and there is huge medical pressure now to get sugar down in general foodstuffs.Games - Not an expert on Tate mind just a simple observation -- I did buy into this and after reading further decided against it and got out with a very small profit -- not a wise move, better to read first then buy, or not.
Rhigos
28 May 2015
Re: WB looks like the divi is ok until 2... idontwanttolose (neither do I),My weak sell was a view not a recommendation and of course everyone should DTOR. I have put on a limit order to sell all my TATE shares at 590p. Probably optimistic as current (11
5) sell price is 578.5p.I did read an article recently that the Chinese were undercutting them with cheap sugar substitutes.Thank you very much for posting pertinent figures from results. I did buy in the hopes that figures would be better than forecast but reverse is alas the case. The CEO is at least upbeat about the future figures but that is to be expected.
Broncomaniac
28 May 2015
Re: WB looks like the divi is ok until 2... Sorry, I meant serious takeover interest below 550p. Perhaps even at the current price. Fingers crossed.
Broncomaniac
28 May 2015
Re: WB looks like the divi is ok until 2... I'm not really concerned about debt levels, they are still relatively low. However, the earnings guidance for 2016 is the same as 2015 adjusted, so as I understand 37.7p. That makes it quite hard to justify the current share price unless there is a convincing case for significant improvement in 2017. I too am regretting buying into these as a recovery play! The reason for holding is that below 550p I think there would be serious interest from a buying with a longer term view.
idontwanttolose
28 May 2015
Re: WB looks like the divi is ok until 2... Looking at the results below it would appear that on the 2nd July Tate will be paying £92.287 million in dividends and they are according to the accounts around £149 million further in debt. They made according to the accounts £30.00 million profit.I would not say therefore that Tate was a "NO BRAINER" purchase, but as I never make a recommendation I would say DYOR CAREFULLYIMO the dividend should be put on hold until they make enough money to reduce the existing debt and pay the dividend. £m and continuing operations1 unless stated otherwise 2015 2014(restated) % change % change inconstant currency5 Adjusted results Adjusted sales2 2 694 3 147 (14)% (11)%Adjusted operating profit3 247 349 (29)% (27)%Adjusted profit before tax4 224 322 (30)% (28)%Adjusted diluted earnings per share4 37.7p 55.7p (32)% (29)% Statutory results6 Sales 2 356 2 754 Operating profit (after exceptional items) 33 251 Profit before tax 51 277 Profit for the year (on total operations) 30 273 Diluted earnings per share (on total operations) 6.5p 58.0p Net debt7 504 353 Dividend per share 28.0p 27.6p +1.4%
Rhigos
28 May 2015
Re: WB looks like the divi is ok until 2... nodebt,Buying after results turned out better than buying before but I cannot agree about "No brainer!" and am considering selling as below my stop loss, 10% down from high since purchased on 14 Apr, as a recovery play. This mornings fall in SP of 3.3% is telling us that market thinks results were worse than analysts were expecting. It is gratifying that dividend has been increased and intention of maintaining for year ending 31 Mar 2016. I cannot see share holders receiving any of the €240m in cash on completion of the transaction as wiped out by impairment charges and exceptional charges.I may hang on a bit longer before deciding to sell in case sentiment swings in favour of TATE but not looking too promising to me at the moment. A further 2% fall in SP would negate above average yield as far as overall return concerned. I think I made a mistake buying TATE.Incidentally have held in past and overall returned nearly 3% in a little over a year so not great. Sold out Sep 2013 at 799.2p.
Broncomaniac
28 May 2015
Re: WB looks like the divi is ok until 2... Market doesn't like it though. Looks like we are going to need some more takeover speculation to get back to 640p
nodebt
28 May 2015
Re: WB looks like the divi is ok until 2016 Over 4.5% yield (at my buy in price of £5.86 this morning) promised over next year . No brainer!
idontwanttolose
28 May 2015
WB looks like the divi is ok until 2016 They have actually increased the divi !! I hope that the planned restructuring extra profit comes to fruition as the divi is close to being unaffordable!!Key PointsGroup adjusted profit before tax in line with February guidance, 30% lower at £224m (2014 ‒ £322m):Costs from operational and supply chain disruption of £20mSPLENDA® Sucralose adjusted operating profit lower by £46m (£43m in constant currency)European Bulk Ingredients adjusted operating profit lower by £17mSpeciality Food Ingredients adjusted operating profit 29% lower in constant currency at £149m (2014 – £213m)Bulk Ingredients adjusted operating profit 19% lower in constant currency at £133m (2014 – £172m)Business re-alignment announced on 21 April 2015 to further focus on and strengthen Speciality Food Ingredients:Re-focus SPLENDA® Sucralose on rigorous value-based strategy and consolidate production into one facility: impairment charge of £113m included in total exceptional charges of £142m (2014 ‒ £14m)Re-align Eaststarch European joint venture by acquiring full ownership of the more speciality-focused plant in Slovakia and exiting the predominantly Bulk Ingredients plants in Bulgaria, Turkey and Hungary. We will receive €240m in cash on completion of the transactionImplementation of new supplementary disclosure framework to provide more detail on business performance, including new disclosure on Innovation; volume from new products nearly doubled in the yearTwo major new product launches: DOLCIA PRIMA™ Allulose and CLARIA® Functional Clean-label StarchesSpeciality Food Ingredients completed two ‘bolt-on’ acquisitions in Asia Pacific and Latin AmericaProposed final dividend of 19.8p, making a total dividend of 28.0p (2014 – 27.6p), up 1.4% on prior yearThe Board intends to maintain the total dividend payment at 28.0p for the year ending 31 March 2016Outlook
Warren Buffoon
27 May 2015
Hope... Hope the divi's kept tomorrow. . . . . .
