Imperial Brands (IMB)

[csearle]

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[idpickering]

Share buy-back programme

Imperial Brands PLC (the "Company") announced on 8 July 2019 its intention to commence a share buy-back programme (the "Programme") of up to £200 million. The Company also announces that it has instructed its broker, Barclays Bank PLC, acting through its investment bank ("Barclays") to purchase its shares (acting as principal) for immediate on-sale to the Company up to the value of £200 million in aggregate, commencing from 10 July 2019.

Full item here; https://www.investegate.co.uk/imperial- ... 00010518F/

[TheMotorcycleBoy]

I hope they've actually managed to flog something first to get the £££ to do this.

I mean it was only 2 days ago back in:
https://www.investegate.co.uk/imperial- ... 00057152E/

·    2019 dividend unchanged at 10% growth

·    Revised progressive dividend growth policy thereafter

·    Continued investment in growth opportunities

·    Divestment programme on track

·    Further deleverage to support a strong and efficient balance sheet

·    Return surplus cash, including via share buybacks; up to £200m share buyback announced

So....

1. they've either delevered themselves on the quiet already
2. they've only instructed their brokers today, but my impression from reading today's bulletin is that they'll starting buying back on the 10th, i.e. now.

I appreciate others here differ with me; but I'd sooner they delever a bit first, otherwise that part of the earlier bulletin is a lie, and they are actually super-sizing their current leverage.

[Dod101]

I agree the timing seems a bit odd but £200 million is small change for them and I guess they want to take advantage of the current price. They are selling their cigars business for £2 billion or so in the next 12 months I think they said. I am not going to second guess them.

Dod

[Walrus101]

I agree the timing seems a bit odd but £200 million is small change for them and I guess they want to take advantage of the current price. They are selling their cigars business for £2 billion or so in the next 12 months I think they said. I am not going to second guess them.

Dod

Think it makes sense to me, if mgt believe it has been artificially sold down by a couple of players in the market who I'd guess are getting towards having closed out their position fully. This would help mop up the residual at what is probably the bottom/ outside of any other news. I'm fairly happy with this tbh

[monabri]

"British tobacco company Imperial Brands is getting into the cannabis business with a $123 million investment in Auxly Cannabis, the Canadian company "

https://business.financialpost.com/cann ... y-cannabis

[TheMotorcycleBoy]

"British tobacco company Imperial Brands is getting into the cannabis business with a $123 million investment in Auxly Cannabis, the Canadian company "

https://business.financialpost.com/cann ... y-cannabis

And that's along with their existing stake in Oxford Cannabinoid.

[MaraMan]

Just returned from a tour of the US western states and it seemed (or smelled like) there were more people smoking cannabis than tobacco.

[TheMotorcycleBoy]

Google for "ft imperial brands sale"

https://www.ft.com/content/c07d72aa-c01 ... e555e96722

Investor support for tobacco business Imperial Brands is crumbling with big shareholders pushing for parts of the company to be sold off and changes to the leadership team after the share price halved in three years.

The maker of Winston and Lambert & Butler cigarettes has promised to sell some of its tobacco brands as well as investing in cigarettes alternatives as it grapples with a decline in smoking in western markets.

But four top 30 shareholders say they have yet to see sufficient results. A top 10 shareholder said they are pushing the board for faster action on divestments and that the company’s plans to sell its premium cigar business — including brands such as Cohiba and Montecristo — did not go far enough.

“We are getting impatient,” the shareholder said. “If they sold some assets, they could do a massive buyback. The board say they are working on it, but it’s too slow.”

...

The top 30 shareholder said the appointment of a new chair, which is expected within the next two months, should “trigger a review of the leadership team”. The current chief executive is Alison Cooper.

In June, Nico von Stackelberg from broker Liberum took the unusual step of writing an analyst note addressed to the incoming chair, saying that Imperial was a “self-help story”.

“We continue to believe Imperial Brands is one of the most attractive investment opportunities in consumer staples. It could be even better by restoring credibility and confidence,” he wrote.

Matt

[idpickering]

Pre-Close Trading update

Imperial Brands PLC today announces that, in light of a challenging NGP market in the USA and changes to our results expectations in the Africa, Asia and Australasia (AAA) division, Group net revenue for the year to 30 September 2019 is now expected to grow at around 2%, with EPS expected to be broadly flat at constant currencies.

Whilst this is disappointing for the current year, we believe that NGP provides a significant opportunity to deliver additive growth to complement our Tobacco business. We continue to refine our investment behind building a strong and profitable NGP business in a rapidly evolving market.

https://www.investegate.co.uk/imperial- ... 00047512N/

Posted on HYP Practical too, but chat here please.

I hold IMB in my HYP, and regard them as a mainstay.

Ian.

[Dod101]

I can't see that being very positive for the share price nor the dividend. In fact it might well affect the BAT price as well given that it is exposed in a big way to the US market.

Maybe also help accelerate a change of management.

BTW why no chat on HYP Practical? If it is a mainstay for your HYP it is also a mainstay for HYP Practical.

Dod

[idpickering]

I can't see that being very positive for the share price nor the dividend. In fact it might well affect the BAT price as well given that it is exposed in a big way to the US market.

Maybe also help accelerate a change of management.

BTW why no chat on HYP Practical? If it is a mainstay for your HYP it is also a mainstay for HYP Practical.

Dod

Morning Dod. I do see where you’re coming from re where to chat about this. My understanding was that finals, interims and dividend matters were ok to report over there, and all else, here? Going forward I’m not sure I shall bother asking posters to post on whichever board. Maybe a mod can clarify this matter?

As for this item, I don’t think they’re all that promising tbh.

Ian.

[Dod101]

I can't see that being very positive for the share price nor the dividend. In fact it might well affect the BAT price as well given that it is exposed in a big way to the US market.

Maybe also help accelerate a change of management.

BTW why no chat on HYP Practical? If it is a mainstay for your HYP it is also a mainstay for HYP Practical.

Dod

Morning Dod. I do see where you’re coming from re where to chat about this. My understanding was that finals, interims and dividend matters were ok to report over there, and all else, here? Going forward I’m not sure I shall bother asking posters to post on whichever board. Maybe a mod can clarify this matter?

As for this item, I don’t think they’re all that promising tbh.

Ian.

Morning Ian. I do not feel strongly about where we chat and as I have said before the two threads are confusing but I would certainly argue that results/trading reports are very much in HYP Practical territory.

The best hope for Imps' shareholders seems to me to be some white knight making an offer to buy the company.

Dod

[idpickering]

Morning Ian. I do not feel strongly about where we chat and as I have said before the two threads are confusing but I would certainly argue that results/trading reports are very much in HYP Practical territory.

The best hope for Imps' shareholders seems to me to be some white knight making an offer to buy the company.

Dod

An interesting thought Dod re a takeover. There’s moves afoot in the industry, I see Altria Group have abandoned talks with Philip Morris re a poss merger. Not seem IMB opening, but BATS down 3% on opening.

Ian.

[Dod101]

Imperial Brands must be cheap by international standards, its management has not exactly covered itself in glory in recent years, and it will have brands within its portfolio that some would like. I doubt that BAT could afford it as it has more than enough debt as it is but some international company like Japan Tobacco , or maybe even Altria might be interested.

Dod

[idpickering]

Imperial Brands must be cheap by international standards, its management has not exactly covered itself in glory in recent years, and it will have brands within its portfolio that some would like. I doubt that BAT could afford it as it has more than enough debt as it is but some international company like Japan Tobacco , or maybe even Altria might be interested.

Dod

Agreed Dod, they must be cheap. I don't mind if a buyer comes along tbh. IMB down 8.5% as of now!

Ian.

[OLTB]

Morning all

By far (Carillion being the exception) my worst share (from a capital perspective) of the lot.

Then again, the dividends keep coming... and isn't that an important point for the HYP. I don't mind if the 10% increase in dividend payments slows to a more realistic figure.

Maybe the recent vaping changes in the US will mean a gradual return to normal tobacco products anyway.

My dividends will be reinvested elsewhere and I hope that IMB are not bought out as I can imagine that this action would crystallise my capital loss!

Cheers, OLTB.

[monabri]

IMB down....quite markedly on opening.

[Dod101]

Imperial Brands is a prime example of the folly of ignoring capital. There is no point whatever in getting a nice yield and increasing cash dividends if the share price itself tanks. Down 9% as I write this.

The tobaccos have been on my 'for sale' list for some time if only the price would recover a bit. A takeover would rescue me, although as I have held Imperial for upwards of 20 years I think I am still well on the positive side overall, although that is not much comfort at the moment.

The CEO might be looking for a job soon.

Dod

[monabri]

Mr Woodford had remarkably good timing....not!

Still, could be worse..Pearson down even more.