Stobart Group pays 6.4% yield

… To it’s investors, that’s one of the highest yields you can find these days.
So, why are they paying one of the crapiest rates to their drivers?
I always read drivers are the backbone of any haulage company.
It seems Stobarts don’t think so.
The article can be found on the telegraph web page, sorry can’t post the link using my tablet.

telegraph.co.uk/investing/sh … dividends/

In other news:

Pope wears funny hat

Bears ■■■■ in woods

the nodding donkey:
In other news:

Pope wears funny hat

Bears [zb] in woods

Or does a tree that falls down in the woods make a noise if there’s no one there to hear it ?

Don’t forget the Stobart group only own 12.5% of the haulage company, so really it’s the other 82.5% who dictate the pay rate.

Stobart Group and Stobart Logistics are 2 seperate companies

STOB - hl.co.uk/shares/shares-searc … td-ord-10p

ESL - hl.co.uk/shares/shares-searc … rd-gbp0.01

STOB do the railways, airport, warehousing and property, and ESL operate the trucks

hkloss1:
… To it’s investors, that’s one of the highest yields you can find these days.
So, why are they paying one of the crapiest rates to their drivers?

Because there is no connection between the profit a company makes and the wages it pays, the latter being determined solely by how much it needs to pay to obtain the labour required.

Are stobarts wages that bad surely they wouldn’t get drivers if it was.
We load there biomass motors and drivers all seem happy enough.

Harry Monk:

hkloss1:
… To it’s investors, that’s one of the highest yields you can find these days.
So, why are they paying one of the crapiest rates to their drivers?

Because there is no connection between the profit a company makes and the wages it pays, the latter being determined solely by how much it needs to pay to obtain the labour required.

Exactly, they say you’re worth whatever someone is willing to pay you, if Stobarts can get all the drivers they need for whatever rate they pay that’s obviously the rate the drivers are worth, to them anyway.

trucken:
Don’t forget the Stobart group only own 12.5% of the haulage company, so really it’s the other 82.5% who dictate the pay rate.

:neutral_face:

“It’s someone else’s fault within the company group”
“Eh? - It’s well above my pay grade, alas. Here we are all poorly paid.”
<Person asking the big questions? “So, if it’s not yourself, and not the high command, who IS to blame for low pay?”
“The market decides the going rate”
“But the market would actually be demanding higher pay across the board - surely it’s something bucking the market then?”
“We’re leaving the market - so it cannot be that anyway.”
“Vote for me - it’s the incumbent’s fault”
“I inherited this mess”
“So who’s fault is the fault then”?
“Someone you’ll never meet, never know the name of, never know where they live, but will always have total power over you.”

Underlings. Oh. That’ll be God then. Hang on a mo… Most people are atheists these days? Can we ask that question from the top again then?
No. You’ve had your fifteen minutes of being listened to in this life.
You’re not God are you?

rearaxle:
0

How come the minimum wage is paid to workers in a borough like Kensington and Chelsea where the parking meters get paid more per hour?

It’s relative in any case.

If your commute and living overheads are low - minimum wage paycheques can be a fortune.
If you commute to London though - £30k is a crap wage.
If you work across the road from where you live - minimum wage bolsters up the household income quite nicely.
If you have a cheap mortgage - this effect is compounded.

What’s wrong with society then, isn’t “Left” or “Right” politics - it’s the way the commuting and housing markets are completely broken by over-reacted tinkering by politicians literally Left, Right, and Center.

Anyone working in Belfast care to comment?
…Or paying a big mortgage in Scotland?
…or emigrating from London?

On topic now - A yield of 6.4% technically makes Stobart Group bonds - utter junk!.

“Investment Grade” can stretch to 5% - but beyond that? - Any would-be buyer of this paper should be asking serious questions of the company.
I, as a potential investor - wasn’t very impressed by the “onion skin” structure of the company as a whole. Too many skins would allow one part of such a “shell jungle” to go bust, default on bond payments, but maintain the wealth elsewhere in the group… Not a very good deal for both bond holders and share holders alike.
6.4% is a ruinous rate of interest to be paying - unless you have no intention of paying it back of course.
If you did intend to re-pay in full - then Stobarts is in real need of someone to re-structure that debt at a much lower rate of interest ASAP.
I don’t think potential lenders and investors give a ■■■■ what rates of pay Stobart pays it’s people though. They’d be more concerned about WASTE within the business. That includes “Natural Wastage” of staff, who leave for better paid work elsewhere…
The day company directors admit that “Waste is what we pay our people. Our Payroll” and out with it - then we might finally get some common-sense business practice as common law in this country. :bulb:

Winseer:

rearaxle:
0

How come the minimum wage is paid to workers in a borough like Kensington and Chelsea where the parking meters get paid more per hour?

It’s relative in any case.

If your commute and living overheads are low - minimum wage paycheques can be a fortune.
If you commute to London though - £30k is a crap wage.
If you work across the road from where you live - minimum wage bolsters up the household income quite nicely.
If you have a cheap mortgage - this effect is compounded.

What’s wrong with society then, isn’t “Left” or “Right” politics - it’s the way the commuting and housing markets are completely broken by over-reacted tinkering by politicians literally Left, Right, and Center.

Anyone working in Belfast care to comment?
…Or paying a big mortgage in Scotland?
…or emigrating from London?

On topic now - A yield of 6.4% technically makes Stobart Group bonds - utter junk!.

“Investment Grade” can stretch to 5% - but beyond that? - Any would-be buyer of this paper should be asking serious questions of the company.
I, as a potential investor - wasn’t very impressed by the “onion skin” structure of the company as a whole. Too many skins would allow one part of such a “shell jungle” to go bust, default on bond payments, but maintain the wealth elsewhere in the group… Not a very good deal for both bond holders and share holders alike.
6.4% is a ruinous rate of interest to be paying - unless you have no intention of paying it back of course.
If you did intend to re-pay in full - then Stobarts is in real need of someone to re-structure that debt at a much lower rate of interest ASAP.
I don’t think potential lenders and investors give a ■■■■ what rates of pay Stobart pays it’s people though. They’d be more concerned about WASTE within the business. That includes “Natural Wastage” of staff, who leave for better paid work elsewhere…
The day company directors admit that “Waste is what we pay our people. Our Payroll” and out with it - then we might finally get some common-sense business practice as common law in this country. :bulb:

Do you ever manage to bore yourself?

A.

Winseer might post something interesting one day but we will all miss it because I guess most people see his name and then move onto the next post.

Been there, done that @ 108.0FM my whole life.

Winseer:
6.4% is a ruinous rate of interest to be paying - unless you have no intention of paying it back of course.

I’m sorry but where on earth are they talking about issuing bonds? I only see dividends paid on stock, where 6.4% is nothing to write home about. You can do significantly better with Vanguard ETF funds or like.

kr79:
Are stobarts wages that bad surely they wouldn’t get drivers if it was.
We load there biomass motors and drivers all seem happy enough.

Stobart drivers taked home about 470 per week if he work just Monday to Friday,day time for about 12 hours every day.Night shift drivers,trampers or who involed in weekend work get extra money.
Agency drivers get 10.50-11.50 p/h for limited company .As well agency give “verbal full time”.No shift cancelation.All start time give Stobart planners,not agency.If drivers want that he can work just for ad hoc stile.Main agency now for all ESL depo one-LOgistic people.

Most of the lads I worked with have gone holiday cover , free van , fuel , paid door / door , I did get offered it before I left but didn’t fancy 18 hr days and traveling to Carlisle on a mon , carlisle - Dagenham on a weds , but they recon there 15 max including travelling and work out same depot all week,
This is what you have to look at , full package , I’m on a lot more p.h as agency but I think over a week I’m worse off , no meal allowance , less guaranteed hours , no bonuses for working extra shift , have to pay for car , insurance , tax , fuel etc etc

milodon:

Winseer:
6.4% is a ruinous rate of interest to be paying - unless you have no intention of paying it back of course.

I’m sorry but where on earth are they talking about issuing bonds? I only see dividends paid on stock, where 6.4% is nothing to write home about. You can do significantly better with Vanguard ETF funds or like.

The Stock yield is currently 3.56% as of last Friday’s close. If and when a stock shows a “yield of 6.4%” then it doesn’t refer to the next dividend, which at that yield is in some danger of not happening. It refers to the last dividend paid in pence divided by the current share price in pence. As is always the case with shares “Past performance is not a guide to future performance”.

The Bonds though represent a fixed rate of interest to the borrower, let’s say 5.5% at issue in 2012. If those bonds then fall in price - then the yield increases, perhaps to 6.4%. by this point.
That means the bonds are now worth less than when you bought them - assuming you bought them at the outset.

Rising Yields thus equals a weak bond market for that particular paper. :neutral_face:

Andrejs:

kr79:
Are stobarts wages that bad surely they wouldn’t get drivers if it was.
We load there biomass motors and drivers all seem happy enough.

Stobart drivers taked home about 470 per week if he work just Monday to Friday,day time for about 12 hours every day.Night shift drivers,trampers or who involed in weekend work get extra money.
Agency drivers get 10.50-11.50 p/h for limited company .As well agency give “verbal full time”.No shift cancelation.All start time give Stobart planners,not agency.If drivers want that he can work just for ad hoc stile.Main agency now for all ESL depo one-LOgistic people.

That’s pretty grim! :open_mouth:

£470pw for what amounts to a 60 hour week is £7.83ph if you’re paid the breaks, £8.54ph if you’re not.

For agency work, even that rate as PAYE would be dire enough. For Limited Company though? :frowning: