I'm not sure where sharepad get their eps data from but as it only floated in May 2021 so the eps never really existed before then. I assume Sharepad have done some reverse calculation on the past profits to give what eps would have been were they a plc back then. Stocopaedia also give an eps for 2019 of 5.4p and 2020 as 1.2p which is probably a reverse calculation or pro-forma I guess. I would think like most businesses they had furlough for many workers and other covid related costs that hit at the time imo.
Thank you, and thanks re the debt situation, that is interesting. I'm pretty cool with their debt in that they generate so much cash that they could pay debt down greatly if they just stopped acquiring for a year or two if they chose to, tho I don't expect them to do that. Family run businesses are usually far more reliable imo so agree that that is positive.
The Group had a total of £49.1 million (FY21: £39.3 million) of interest-bearing debt facilities including £25.9 million (FY21: £21.6 million) of IFRS 16 lease liabilities.
yes, I'm afraid the lastest accounting means leases are classed as debt which most people I know feel is a nonsense. Booker was taken over under older avccounting principles and I'm sure Tesco wasn't viewing future leases as debt.
Firstly when they IPO'd they raised cash to pay down the debt so although I accept current debt levels are low I wouldn't want to see debt levels accelerate towards pre-IPO levels.
Secondly a point regarding succession planning. Mr Young is 65 and is likely to be around a while longer but I did spot in the Annual Report that there are two younger senior managers in the company that have the same surname. I suspect these may well be the CEO's sons and if that's correct I'd view it as another positive for a founder run company.
I know this is a hobby horse of mine but in looking at debt you have to be aware of how much of it is leases and not term interest paying loans. I wish Stocko and others would show it separately. In the old days of course it was just rental expense.
I thought the write up excellent and reminded me of my days buying from Palmer and Harvey. Well researched and comprehensive.
as a fellow holder I hope you are right (just wish I owned more of it). The share price has been on a good run this year so far but still look good value.
I'm not sure where sharepad get their eps data from but as it only floated in May 2021 so the eps never really existed before then. I assume Sharepad have done some reverse calculation on the past profits to give what eps would have been were they a plc back then. Stocopaedia also give an eps for 2019 of 5.4p and 2020 as 1.2p which is probably a reverse calculation or pro-forma I guess. I would think like most businesses they had furlough for many workers and other covid related costs that hit at the time imo.
thank you.
Thank you, and thanks re the debt situation, that is interesting. I'm pretty cool with their debt in that they generate so much cash that they could pay debt down greatly if they just stopped acquiring for a year or two if they chose to, tho I don't expect them to do that. Family run businesses are usually far more reliable imo so agree that that is positive.
The Group had a total of £49.1 million (FY21: £39.3 million) of interest-bearing debt facilities including £25.9 million (FY21: £21.6 million) of IFRS 16 lease liabilities.
yes, I'm afraid the lastest accounting means leases are classed as debt which most people I know feel is a nonsense. Booker was taken over under older avccounting principles and I'm sure Tesco wasn't viewing future leases as debt.
Trading update next week so we will see. Having said Q1 had remained strong I'm optimistic
Good write-up, thanks
hi Richard
Excellent write up - many thanks.
I'd just add a couple of things.
Firstly when they IPO'd they raised cash to pay down the debt so although I accept current debt levels are low I wouldn't want to see debt levels accelerate towards pre-IPO levels.
Secondly a point regarding succession planning. Mr Young is 65 and is likely to be around a while longer but I did spot in the Annual Report that there are two younger senior managers in the company that have the same surname. I suspect these may well be the CEO's sons and if that's correct I'd view it as another positive for a founder run company.
I hold.
Hi Richard
I know this is a hobby horse of mine but in looking at debt you have to be aware of how much of it is leases and not term interest paying loans. I wish Stocko and others would show it separately. In the old days of course it was just rental expense.
I thought the write up excellent and reminded me of my days buying from Palmer and Harvey. Well researched and comprehensive.
I look forward to others you my do in the future
Thanks for the overview.
Can you say what happened in 2020/21. Sharepad show EPS falling from 37 down to 8. Was this all CV19 related?
as a fellow holder I hope you are right (just wish I owned more of it). The share price has been on a good run this year so far but still look good value.