The Lemon Fool

Dod101 wrote:I would not be surprised if they take the opportunity to at least rebase the dividend as well. We'll see.

They write of 'both businesses' Presumably they mean tobacco and NGP.

Dod

Walrus101 wrote:I wouldn't read too much into this.

In the current environment I'd expect a number of companies to do the same. Preparation and audit is indeed more challenging in this environment. Additional procedures bring required/ new auditor, sounds reasonable to me.

Still long IMB and BATs, retain my view this sector will re rate.

Imperial Brands PLC ("Imperial") is pleased to announce it has agreed the sale of its worldwide premium cigar businesses ("Premium Cigars") to investment consortia of individual investors in two distinct transactions for a total consideration of €1,225 million (£1,074 million), which represents a multiple of 11.8x FY19 EBITDA on a standalone basis. The disposal reinforces Imperial's focus on simplifying its business and realising value for shareholders.

As previously announced in April, Imperial Brands plc ("Imperial") agreed the sale of its worldwide premium cigar businesses ("Premium Cigars") for a total consideration of €1,225 million, of which net cash proceeds of €1.1 billion will be used to reduce debt. Given the challenges caused by COVID, Imperial has agreed to complete both transactions on 29 October 2020, slightly delayed from the original timetable.

Gemstone Investment Holding Ltd and Allied Cigar Corporation, S.L. (the "purchasers") have made a non-refundable down payment of €91.7 million to Imperial. In addition, the purchasers have agreed to pay a further non-refundable down payment of approximately €85 million to Imperial by 7 October.

Imperial has also agreed to provide a six-month vendor loan at completion of up to €250 million while the purchasers finalise long-term financing arrangements. All other terms remain in line with the announcement of 27 April.

Dod101 wrote:This does not sound brilliant does it? The buyer is still trying to arrange long term finance despite that fact that the sale was agreed in April to be completed in 'the third quarter'. Now we have at least a month's delay, down payments and a deferral of about 20% of the price for 6 months. All very messy and it sounds as if the buyers are scrabbling around. Hardly a done deal to be relied upon.

Dod

The tobacco business has continued to perform well despite an uncertain and disrupted trading environment. We have experienced some COVID-related changes in consumer behaviour with increased overall demand against our expectations, as consumers appear to have allocated more of their spend to tobacco, as well as some demand shifts between different markets and channels. This has resulted in better than expected volumes, driven by improved volume trends in several key European markets and in the US. These positive trends have helped to offset relatively weaker market volumes in the duty free channel and in some traditional summer tourist destinations, where reduced travel has impacted demand. Overall, we expect tobacco net revenue to increase by around 1% at constant currency.

The focus in NGP has been on improving performance, returns and capabilities. As previously announced, we have significantly reduced investment while maintaining a range of options for future growth. Trading has been disappointing, albeit in line with our revised expectations with the level of underlying losses reduced in the second half as we curtailed expenditure. NGP net revenue is expected to be around 30% lower than last year at constant currencies.

idpickering wrote:Full Year Trading Update


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

Dod101 wrote:No kitchen sinking yet anyway.