Rolls-Royce

Do Spivvy PE Funds IPO Their Investments at Inflated Prices? – and HM Treasury Consultation UK Listings Review

The AA 86% share price decline, coming on top of the Saga and Aston Martin makes me wonder if PE firms and others are exploiting those retail investors willing to buy into a fashionable story. I have to admit to losing money on Saga, whose share price is down 90% from its 2016 high. My mother-in-law was a huge fan of Saga and she gave me a present of Saga membership when I was 50, so when they were floated, I and ...

Epidemic Over? Unable to Trade and Chrysalis VCT Wind-Up

Pandemic News The news that the Pfizer vaccine for Covid-19 appears to work (at least 90% of the time) and has no negative side effects gave stock markets a good dose of euphoria yesterday (9th November). It suggests that we might be able to return to a normal life in future, but exactly when is far from clear. Actually producing and distributing the vaccine is going to be a mammoth task and it is very clear that it will only be given ...

Pearson Pay Vote Lost

Shareholders in Pearson (PSON) yesterday rejected the Remuneration Report on a vote at the company's AGM. That was by 61% opposed to 32% supporting with 6% abstaining. But they approved the Remuneration Policy. Opposition to the Report seemed to be based on the fact that CEO John Fallon achieved a 20% rise in total pay despite a record loss and several profit warnings. However the share price rose on the day substantially by 12% perhaps because of a positive first quarter trading statement ...

Rolls-Royce – Audits Investigated and AGM

Yesterday (4/5/2017) I attended the Rolls-Royce (RR.) Annual General Meeting in Derby. In former years they used to hold the meetings in London but it’s been Nottingham and Derby...

Pay Revolts and Rolls-Royce Voting Recommendations

According to a number of press reports we seem to be heading into the AGM season with another year of pay revolts. There are also rumours that Mrs May is to proceed with introducing annual pay votes. Chris Cummings, CEO of the Investment Association, writing for the Guardian said "Too many people still feel they are not sharing this country's prosperity. Companies can either act responsibly now and shape a more responsible 21st-century corporate Britain or they can carry on as before ...

Rolls-Royce Bribery Settlement – Questions Worth Asking

On the 17th January aero-engine maker Rolls-Royce announced a settlement with the Serious Fraud Office (SFO), US Department of Justice (DoJ) and Brazilian authorities over past bribery and corruption...

Rolls-Royce Accounts Adjustments – Were They Prudent?

Rolls-Royce provided a trading update today, and covered the impact of IFRS 15 which is probably a lot more important. IFRS 15 is a new accounting standard concerning revenue recognition which will come into use in 2018. It will have a major impact on the figures reported by Rolls-Royce because of their past recognition of revenue and profits from long term maintenance contracts. For example, Rolls-Royce report that when looking at the 2015 accounts the "Changes result in adverse notional adjustments to ...

Rolls-Royce and Voting Procedures

I published a report on the Rolls-Royce Annual General Meeting (AGM) in the last ShareSoc newsletter and also here. I wrote to the Chairman after the meeting complaining about...

Rolls-Royce and Other AGMs

Yesterday I attended the Annual General Meeting of Rolls-Royce Plc - held at 11.00 in Nottingham (at a conference centre on the University Park). Why move the venue from London where it has been held since 2004? Probably to attract a more sympathetic audience of ex-employees I suspect. Shareholders in Rolls-Royce don't need to be told that this company is going through a rough patch. Profits in the last two years have been miniscule, the dividends have been cut and even revenue ...

Does Rolls-Royce need shaking up?

Does Rolls-Royce (RR.) need shaking up? Or more to the point perhaps, will they be following the disclosure that activist fund manager ValueAct has taken a 5% stake in the company, although their agenda is as yet unclear. On the 30th July Rolls-Royce issued their half-year results. Results were disappointing as expected. The order book was up, but underlying revenue was down and underlying profit before tax down by 32%. This is basically the same story as was evident at the full ...