Imperial Brands (IMB)

[Dod101]

Thanks Ian. Confirmation of the Final Dividend but very little about the new CEO's strategic review. Promises an announcement in January.

I would not see this as having much effect on the share price one way or the other. It is more likely just to fluctuate with general market sentiment.

Dod

[dealtn]

Full Year Trading Update


https://www.investegate.co.uk/imperial- ... 00024887B/

Reads quite well, and no kitchen sinking by the new guy.

Cash conversion ahead of expectations, which is good. Mature business but showing no signs of decline, with a single digit P/E there looks to be plenty of puff left in this "dog end". As a value investment it still looks cheap enough to me to collect the running cash and get the investment back.

The full year update doesn't contain anything unexpected from the trading update. Opinions that tobacco companies are dying, and have no long term future, aren't born out by the revenue (or cash flow) numbers.

Reducing pension issues are welcome, but likely to have been ignored, at least for now. I would hope to see fewer write downs in next year's numbers but that will depend on the new CEO's review, and how large his kitchen sink is.

Shares up approx. 7% today in a falling market suggests the long held view of decline may well now be behind. A share I continue to hold to capture the pleasing cash flow, but a takeover offer would be enough to see me exit.

[idpickering]

Thanks Ian. Confirmation of the Final Dividend but very little about the new CEO's strategic review. Promises an announcement in January.

I would not see this as having much effect on the share price one way or the other. It is more likely just to fluctuate with general market sentiment.

Dod

You're welcome Dod.

I'm not bothered about buying Imperial Brands, and favour BATS in the sector.

Ian.

[Dod101]

I am pleased that the share price increase yesterday is holding up this morning. I guess it must be relief that nothing dramatic has happened yet anyway. I will be happy to exit at some point but am in no rush.

Dod

[idpickering]

Pre-close trading update

· Good start to the year with trading in line with our expectations

· Aggregate market share growth in top five priority markets

· Increased investment in priority markets in line with the new strategy

· Growth in Group operating profit driven by reduced NGP losses and higher Logistics profit

· Full year constant currency guidance remains unchanged

https://www.investegate.co.uk/imperial- ... 00059298T/

[idpickering]

Imperial Brands announces earlier start date for new Chief Financial Officer

Imperial Brands PLC is pleased to be able to state that following the announcement on 17 February 2021 of the appointment of Lukas Paravicini as Chief Financial Officer, Lukas will join the Board with effect from 1 May 2021.

Lukas will be appointed Chief Financial Officer on 19 May, the day after the Company publishes its half year results. Oliver Tant will step down from the Board on 19 May and will be available to work with Lukas through to the end of June to ensure a smooth and orderly handover.

https://www.investegate.co.uk/imperial- ... 00061079V/

[idpickering]

Update on sale of Premium Cigar Businesses

Imperial Brands PLC provides an update on sale of its Worldwide Premium Cigar Businesses

Imperial Brands PLC is pleased to confirm receipt today of the deferred consideration of €250 million following the sale of its worldwide premium cigar businesses on 29 October 2020.

This brings the total proceeds received to €1,068 million from the total consideration of €1,225 million. As announced on 29 October 2020, €88 million of the consideration is deferred for 12 months and €69 million is deferred and contingent upon the transfer of the Dominican Republic factory.

The net cash proceeds of €1.1 billion will be used to reduce debt.

https://www.investegate.co.uk/imperial- ... 54111169X/

[OLTB]

I have read that a billionaire called Kenneth Dart has recently bought a 3% stake in IMB (as well as a 7% stake in BAT) through his investment company, Spring Mountain Investments. Just for info really and here’s the article https://www.cityam.com/secretive-billio ... ssion=true

Cheers, OLTB.

[Dod101]

I have read that a billionaire called Kenneth Dart has recently bought a 3% stake in IMB (as well as a 7% stake in BAT) through his investment company, Spring Mountain Investments. Just for info really and here’s the article https://www.cityam.com/secretive-billio ... ssion=true

Cheers, OLTB.

Always interesting to know. I wonder what he intends to do, unless he is just a closet HYPer of course.

Dod

[csearle]

IMB and BATS are in the addictions business. No signs of any let-up in demand. TTTBIN. C.


[Edit: I don't cease to invest, on ethical grounds, because the satisfaction to be had when suffering a whiff of some disgusting smelly smoker, is too great.]

[idpickering]

IMB and BATS are in the addictions business. No signs of any let-up in demand. TTTIIN. C.


[Edit: I don't cease to invest, on ethical grounds, because the satisfaction to be had when suffering a whiff of some disgusting smelly smoker, is too great.]

Pardon my ignorance Chris, but what does TTTIN mean? I suspect I'm not alone in being baffled maybe?

Ian.

[csearle]

Pardon my ignorance Chris, but what does TTTIN mean? I suspect I'm not alone in being baffled maybe?

Sorry Ian, "The Time To Buy Is Now", thoroughness was never my strongest suit! I'll add the 'B'.

[idpickering]

Half Yearly Report.

Here; https://www.investegate.co.uk/imperial- ... 00029635Y/

[GrahamPlatt]

People keep saying, and I myself thought, that the number of smokers was reducing. Apparently not.
https://www.theguardian.com/society/202 ... tudy-finds

[csearle]

People keep saying, and I myself thought, that the number of smokers was reducing. Apparently not.
https://www.theguardian.com/society/202 ... tudy-finds

My morals are all over the place. They are smoking themselves to death and making my environment smell. The least one can expect is to be compensated by dividends. If they do it more then the compensation should be higher. C.

[88V8]

My morals are all over the place.

One does feel a little conflicted.
However, with the exception of housebuilders which I absolutely will not touch, I do not mix investing and ethics.
After all, who sells most of the fags, booze, unhealthy food.... the supermarkets. So logically, they should be off limits to anyone with morals.....

Potential restrictions on nicotine content are a cloud on our investing horizon.
Otherwise, unless squashed by taxation, IMB seem likely to remain a decent cash cow for the rest of my natural. And govts collecting billions of tax aren't really likely to kill their golden goose although they might pluck its wings.
After all, people have a choice; no one is obliged to start smoking, and it is possible to stop.

V8

[idpickering]

Trading Statement

· Delivering in line with guidance and on track to meet full year expectations

· Focus on top five priority markets beginning to arrest long-term share declines

· Market trials underway with heated tobacco in Czech Republic and Greece, and blu in the US

· Significant new hires to strengthen capabilities across the Group

· Continued strong cash generation supporting our planned investment behind the new strategy

https://www.investegate.co.uk/imperial- ... 00061756O/

[Dod101]

I wonder what the market will make of that. Does not sound too encouraging to me.

Dod

[idpickering]

Business Highlights

Business Highlights
•Transformation programme underway to create more consumer-focused, efficient and performance-driven organisation
•Operational improvements supporting growth in net revenue, profit and free cash flow
•Sharper focus on top-five priority markets beginning to arrest long-term share declines
•NGP pilots in heated tobacco and vapour on track
•Strong cash flows enabling deleverage progress in line with our plans

https://www.imperialbrandsplc.com/inves ... entre.html

RNS re results, including this;

Dividend payments

The Group paid two interim dividends of 21.06 pence per share in June and September 2021.

The Board has approved a further interim dividend of 48.48 pence per share and will propose a final dividend of 48.48 pence per share, bringing the total dividend for the year to 139.08 pence.

The third interim dividend will be paid on 31 December 2021 to shareholders registered on 26 November 2021. Subject to AGM approval, the proposed final dividend will be paid on 31 March 2022 to shareholders registered on 18 February 2022.

In the year there were £1,305 million of shareholder dividend payments (2020: £1,753 million). The 25 per cent reduction represents the FY21 impact of the one-third rebasing of the dividend announced in May 2020 as part of the revised capital allocation policy to accelerate debt reduction.

https://www.investegate.co.uk/imperial- ... 00085078S/

[Dod101]

Nothing very interesting there that I can see I must say. As little Greta would say a lot of 'blah blah blah' with little for the shareholder. Some debt reduction rather than rewarding them.

More interesting to me was the report yesterday that a Mr Dart has paid £700 million to buy a 4.75% stake in Imperial, rather more in BAT with a 7% stake, costing him £4.5 billion. Tells everyone that he is a value investor and that he thinks the sector offers 'very attractive valuations'. WE know what has happened to value investments over the last few years.

Dod