Remove ads

Introducing the LemonFools Personal Finance Calculators

Just Group (JUST)

Discuss Shares, buying selling, tips and deals
Alaric
Lemon Quarter
Posts: 2847
Joined: November 5th, 2016, 9:05 am
Has thanked: 7 times
Been thanked: 581 times

Just Group (JUST)

#193761

Postby Alaric » January 15th, 2019, 3:48 pm

Being featured in Private Eye is possibly a "sell" signal.

This Company specialises in equity release and similar retirement income related products. Yield has been quoted as 3.75%, a function of a depressed share price as much as anything, but according to Private Eye, its auditors forced it to cancel its November dividend.

Private Eye also reckons it would be vulnerable to a fall in house values, given that it offers lifetime income secured against the residual house value, but offers a guarantee against negative equity.

monabri
Lemon Quarter
Posts: 2547
Joined: January 7th, 2017, 9:56 am
Has thanked: 256 times
Been thanked: 606 times

Re: Just Group (JUST)

#207773

Postby monabri » March 15th, 2019, 12:05 am

February 6th 2019, CEO reported

"I am pleased to report on an excellent year for Just. Despite the challenges we faced we have achieved another year of double digit sales growth and helped more customers than ever."... "We look forward to presenting our full year results in March."


March 14th 2019

"IFRS loss before tax was £(86m) (2017: profit £181m), driven by changes to property assumptions in light of the economic and financial uncertainty caused by Brexit"
"
After careful consideration, we are today announcing a package of capital actions, including an underwritten Restricted Tier 1 debt offering of at least £300m and an underwritten non pre-emptive equity placing of 9.99% of existing share capital, which will allow the Group to maintain its focus on growing profits"

"Given the proposed capital actions we are announcing today, we do not consider it appropriate to pay a dividend for 2018. Our current expectation is to recommence dividend payments during the 2019 financial year at a rebased level."


Actual sum £380m.


I don't hold Just Gp shares but I'm surprised at how the CEO can report on an "excellent year" and then 5 weeks later asks for such a large sum of money and cancels the divi to boot.

I understand that new rules have been introduced which means that the company needs to hold bigger reserves in case of a downturn in property values..but I would've expected the CEO to have been a little bit more cautious in his language 5 weeks ago ( especially with new rules about to hit the business).

Alaric
Lemon Quarter
Posts: 2847
Joined: November 5th, 2016, 9:05 am
Has thanked: 7 times
Been thanked: 581 times

Re: Just Group (JUST)

#207779

Postby Alaric » March 15th, 2019, 1:28 am

monabri wrote:I don't hold Just Gp shares but I'm surprised at how the CEO can report on an "excellent year" and then 5 weeks later asks for such a large sum of money and cancels the divi to boot.


Easiest trick in the book, selling at a loss. Financial losses can be entirely consistent with growth in sales.

There's a "no negative house price equity" guarantee in the loans they offer. Depending on how you model it, it's either a worthless cosmetic guarantee or potentially a big number, requiring lots of capital to establish solvency in adverse scenarios.


Return to “Share ideas”

Who is online

Users browsing this forum: No registered users and 2 guests