Market's view on Robinson
Published on April 2024
- PG’s involvement is seen as a significant shake-up for the company, with expectations of substantial changes due to his known capabilities as a serious player in the industry.
- Concerns about the sustainability of the company’s dividend policy, with suggestions that it’s financed through selling valuable assets rather than from earnings.
- There are doubts regarding the company’s ability to afford its dividends, potentially pressuring family members to sell their shares once dividend payments cease.
- The company is perceived as a potential takeover target, with family members likely to accept an offer within the appraised NAV range of 150-170p, especially considering its low risk profile and anticipated net cash position from real estate sales.
- The current dividend policy may be keeping the company’s performance mediocre, as long as family members continue to receive dividends.
- Selling off assets like old sites to reduce debt and streamline operations is viewed as a normal business strategy that might help the company become more profitable.
- There is a belief that strong cash flow and property sales could significantly improve the company’s financial position, potentially leading to a rise in the share price.
- There are criticisms of the management’s inability to maintain profitability compared to other companies in the same sector, highlighting a need for more aggressive cost, revenue, and pricing strategies.
- Doubts persist about the company’s appeal to major players or private companies for a takeover, given its current capacity and margin issues.