Market's view on Dewhurst
Published on April 2024
- A stock watcher noted the previous high share price of £20 in July 2021 and questioned its reasons.
- Another watcher finds the current situation of the company interesting and believes the business is undervalued, holding a small position.
- Comments were made regarding Ingmar Scott’s investment performance and the structure of share classes, which allows family control without owning a majority of the total share count.
- Discussions about the issuance of dual share classes by the Stock Exchange were mentioned.
- Concerns about why the company still has ordinary and A shares in 2024 and the timing of the AGM were raised.
- Ingmar Scott’s increase in voting share ownership from 4% to 8.4% was highlighted, suggesting the likelihood of avoiding unwanted corporate actions due to significant family ownership.
- Frustrations were expressed regarding the timing of the AGM and the non-utilisation of a 15% buy-back authority despite reliable and gently growing earnings.
- The comfort of family presence in the company, high cash holdings, and potential for dividend growth or acquisitions were noted.
- The disparity in trading levels between Ordinary and A shares was discussed, questioning the premium paid for voting shares.
- A change in the company’s name was considered non-radical, which was seen positively.
- Historical reference to Cakebread Robey’s capital structure was discussed, highlighting a precedent for dealing with non-voting and voting shares.
- The potential impact of share consolidation on non-voting shareholders was debated, considering the economic implications and necessary shareholder approvals.