ADM return of capital

[Raptor]

Just got this on my Iweb account. At least they have sorted that out.

You received a dividend payment on 3rd June 2016 from Admiral Group. This payment was paid to your account as a dividend but actually consisted of 51.5 pence dividend (income payment) and a Return of Capital at a rate of 11.9 pence per share (capital payment).

We will amend your Consolidated Tax Voucher to reflect the income payment of 51.5 pence.

Raptor.

[Gengulphus]

I think they really ought to issue an RNS correcting the interim results, since they clearly incorrectly described the 11.9p as part of the dividend. But I'll leave it to the appropriate regulator and/or someone who is actually a shareholder to ask them to do that...

Gengulphus

[FluffyOverlord]

Morning...

Some mix-up over this and I have been following both this Lemon thread and the original Fool thread (in HYP-Practical).
Have looked into what the company itself has said and found this...

The Admiral Group Investor Relations web page has links to the 2016 Interim results presentation.
https://do354dnzymf0.cloudfront.net/sites/default/files_public/slides/2016/08/2016-interim-results-slides_0.pdf
Slides 8 to 10 cover the payment in question.
Slide 8 is ambiguous at best. However slides 9 & 10 are clear (to me) that it is a dividend payment - they are just giving visibility of which internal pot is the source of the money.
Slides 38 and 40 further confirm the payment is a dividend.

Where that leaves people who are having changes provided by their brokers (and different brokers have accounted differently), I have no idea.

Regards,
Fluffy.

[Gengulphus]

Replying to myself...

I think they really ought to issue an RNS correcting the interim results, since they clearly incorrectly described the 11.9p as part of the dividend. But I'll leave it to the appropriate regulator and/or someone who is actually a shareholder to ask them to do that...

Sorry, that reply was distinctly off-target, as I'd somehow misread the OP as saying that the company had amended what they had said, not that the broker had.

The situation is simple: you've got the broker saying one thing and the company another. You need to resolve which it is.

The company produced the payment and knows whether it is all dividend, or part-dividend-part-capital-distribution. The wording in the interim results says that it is all dividend, but comes close enough to saying part-dividend-part-capital-distribution to raise a doubt about which it is. It's the company that can resolve that doubt, not the broker.

So contact Admiral's investor relations, which you can do via their website. Tell them that their interim results say that the payment is a dividend, though in a somewhat ambiguous way, but your broker says that it is partly a dividend and partly a capital distribution. Ask them to let you which it is and await their reply. Then let us know what they say.

I'd do it myself if I were a shareholder - but I'm not.

Gengulphus

[Raptor]

Just received e-mail from iWeb (should be same for Halifax).

Thank you for your e-mail and the information from Admiral Group.
I have spoken to the dividend department regarding this information, and they are going to go back to Admiral Group, to get full clarification, so that we do not give out incorrect information. and we will contact you in due course.


So at least we are getting there.

Raptor.