NEW ARTICLE: Still upside risk at Intermediate Capital "LSE:ICP:Intermediate Capital Group's meteoric rise over the past year has had some investors looking nervously over their shoulders. However, today's forecast-busting half-year results from the specialist asset manager not only provided ..."[link]
Ha The smell of burnt fingers in the air this morning?
Dividend Review? Have I missed the result of the "review to determine a progressive dividend policy thatwill better link our ordinary dividends to our robust business model"? This was flagged by our Chairman, Kevin Parry on 15 November.
Re: Special dividend Thank you.....I should have looked down the previous posts first!
Re: Special dividend Hi Mistolink in my previous post to the prospectus which says the below:''TAXATION OF SPECIAL DIVIDEND AND SHARE CONSOLIDATIONA limited summary of the tax consequences of the Special Dividend and the Share Consolidation for certain categories of UK resident shareholders is set out in paragraph 6 of Appendix I to this document.Shareholders should read paragraph 6 of Appendix I to this document and, if they are in any doubt as to their tax position, consult their own independent tax advisers.''''Assuming that the Finance Bill 2016 is enacted in its current form, if an Individual UK Resident Shareholder receives the Special Dividend from the Company, the Special Dividend, together with all dividends from other sources, will form part of the shareholders total income for income tax purposes and will constitute the top slice of that income. A nil rate of income tax will apply to the first £5,000 of taxable dividend income received by the shareholder in a tax year.''But download & read it all!!ii have so far only paid me the final div on Friday but the special is yet to come!! I have some more with H-L and all the div arrived Friday. All in ISA so luckily no tax worry!SG
Special dividend Hello, sorry this question must be asked many times, but....How do we treat the special dividend, as income or capital repayment? Does anyone out there have the time to point me in the right direction. I have looked for a statement from the company, but found nothing.Capital gain induced or income tax!! Thanks
ICP - Gearing target Should ICP re-visit its decision to raise gearing to 0.8x-1.2x given the current uncertainties surrounding the regulatory regime under which it will be operating in the EU post Brexit? Seems like now not a bad time to retain spare capacity on the balance sheet.Given the fact the £200m special dividend is a contributor to achieving that gearing goal, should ICP not explain why it believes that distribution remains appropriate, before pressing on? There has after all been a bump in the road/seismic shift (depending on your pov) since the special divi was advertised. That's a question for ICP?For other holders of ICP ... what in your view is the central case (the most likely outcome) - Norway (EEA+ or-), Switzerland or floating free under WTO rules and..Investors are going to be even more needy for yield but underlying assets just got wobblier. so ... ? net good, neutral or bad?
Re: rise Im trying to grapple with the difference between market cap. and NAV for ICG as they move from mezzanine debt to 'specialist asset manager'. Tangible NAV quoted as 386p in morningstars figures but as ICG have both investment funds and debt then overall value is linked to the performance from both. This years Annual Report on first glance looks encouraging but EPS is down, borrowings are up and the dividend hasnt gone up much considering I now hold fewer shares than 2 years ago (and will be even fewer from August).The capital markets day presentation from feb 2016 has some interesting data also suggesting their long term strategy will produce good returns. The return of capital this time is 63.4p per share with 'special' ex-div 28/7/16 paying 5/8/16. Consolidation is 8 for 9 (vs 6 for 7 in 2015)The final div is 15.8p ex-div 16/6/16I will wait to see if there are any more dips towards to 550 level before buying here again.Several directors sold a lot of shares in early June and Im sure I saw a RNS on 9th June detailing sales to cover tax liabilities but its now disappeared! More detail about the consolidation here[link] luck allSG
Re: rise Why returning cash is good financial management .... To exaggerate for effect, think of a business where two thirds of its value is in cash and one third is in operating assets. Trying to get a decent return on TOTAL assets, including that cash pile, is nigh on impossible. So it is prudent to have an appropriate amount of cash on the balance sheet, no more. (And this is one cash generative business).2) The company is giving you back your cash. You have an option to buy more ICG shares, buy other shares or take a longer holiday. There is value in that option (who knows if it s more valuable than the cost you incur if you choose to increase your percentage holding in the company.. but it is worth something.) 3) If you had reinvested what you were given in special dividend last year, you would be 10% + up on that investment. What no-one has explained is why the company has said it is NOT going to do any more special dividends - seems like it is going to struggle to hit its gearing target if it keeps churning out cash, unless it increases its normal dividend quite substantially.Finally, I ask again, how are pure play Private Debt Managers (ICG is not yet pure play, but no matter) valued - and what is the nearest comparator. I am a holder of shares ... and expect my kids will enjoy the benefit of that decision, not me.
Another special dividend Once again cash will be distributed to shareholders in return for a chunk of their shares. All smoke and mirrors which did not give me confidence it would enhance their value last time around.I didn't like it then, and I don't like it now.Sold on yesterday's peak before results. May buy back if there is a significant drop before ex divi date, or may wait until the dust settles. Or may just walk away.Callun.
Re: rise Oh, and full year results are due out tomorrow, so probably risen on expectations of good news. SP could go either way.
Re: rise Not specifically today, but it's a continuation of the rise since early Feb. Up over 30% so far. Suspect it might pause for breath soon, having reached all time high and especially as we approach ex div date. Only IMO of course.Callun.
rise Anyone with an idea what's going on with the good rise today?Long may it continue. B
Re: Special dividend MRG, I agree that we each hold the same fraction of the company we held before, but the value of the company has gone down to 6/7 of what it was previously. We seem to have been refunded the value of the capital loss dressed up as a dividend.The consensus forecasting of 27.15p/share is based on an anticipated improvement on the historic divi growth trend, and probably has nothing to do with the 6 for 7 share reduction.
Re: Special dividend We shareholders now have a wad of cash and each hold the same fraction of the company we held beforehand.I have a question for anyone in the know: will be annual dividend go up by the factor 7/6 to reflect the fewer shares in issue? That is, does the company intend to pay out the same total annual dividend to the reduced number of shares? The FT site suggests so: [link] a consensus of 27.15p/share rather than about 23p before the consolidation.