£SOM Dividend payment delay issue.

Monday, Dec 03 2018 by


This is the response I got from my IR contact at Somero Enterprises Inc (LON:SOM) when I asked what could be the possible cause for the delay in payment.
I replied, that this kind of thing will impact sentiment and as such they should take it seriously.
I have left her email on in case any other holders which to express their frustration.

Mr. Hawkins,

We do pay in USD as reflected in the announcement and we get questioned on this with nearly every dividend payment. I have again reached out to our Registrar on your specific inquiry and they provided the following explanation:

What is likely the case is the cheque will have gone to the brokers. I don’t see AJ Bell on the register so it is likely they hold their shares through someone like Pershing Nominees.

So what will happen is we pay Pershing a cheque, they wait until it clears before passing this onto A J Bell, who then in turn passes this onto the underlying holder. As you can imagine this can sometimes take a little while.

Unfortunately, neither we nor our Registrar have any control over the processing of the dividend payments once it is released to the brokers. The relationship between A J Bell and their custodian is not something that we have visibility into nor the ability to influence.

I’m sorry that I can’t be of further help on this matter. I would hope that your broker has received and processed the dividend payment by now as it seems impossible that it would take this long for funds to clear.

Kind regards,


Director of Legal & Corporate Affairs
Investor Relations & HR

Somero Enterprises, Inc.
14530 Global Parkway
Fort Myers, FL 33913 USA
p: +1-239.210.6529
m: +1-603.540.6010
Oliver, Jennifer

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35 Posts on this Thread show/hide all

Effortless Cool 3rd Dec '18 1 of 35

It seems to me that this is something you should be taking up with AJ Bell, rather than with Somero Enterprises Inc (LON:SOM). The later would seem to have met their responsibility to pay the dividend to their shareholders.

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simoan 3rd Dec '18 2 of 35

In reply to post #424033

It seems to me that this is something you should be taking up with AJ Bell, rather than with Somero Enterprises Inc (LON:SOM). The later would seem to have met their responsibility to pay the dividend to their shareholders.

Actually, the fault lies somewhere between the two:. Somero will only pay the dividend by USD cheque (not wire transfer) and AJ Bell do not pre-credit dividends to accounts as other brokers do. Even with Hargreaves Lansdown I received the dividend 6 days after the payment date. So both AJ Bell and Somero could do more to ensure shareholders got paid on time but both parties seem to be blaming the other - never a good situation.

All the best, Si

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doug2500 3rd Dec '18 3 of 35

I'll be open from the start and say I do not like the nominee system.

This seems to be one of its worse manifestations, where not only do you not own the shares, but nor does your broker. (And I know you're the 'beneficial' owner but why add the complication of layers of ownership?)

I may be naive and confess I'm not even sure my ISA broker holds all my shares, but it had never occurred to me before that they might not.

I'm actually quite impressed with Somero Enterprises Inc (LON:SOM) following this up. From their point of view they've paid the owner on time.

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Merlotman 3rd Dec '18 4 of 35

Agree the problem is with the broker. My SOM divi was in my account by 23/10.

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bluecurve 4th Dec '18 5 of 35

I own a business with customers in the US, and, on the odd occasion that someone has paid us by cheque, it has taken around 6 weeks to clear. It seems to be an issue between UK/US banks, in that the cheque has to be physically sent back to the US and then processed. Seems a bizarre delay in this day and age. I think most US banks still charge for a wire transfer, hence the continued use of cheques.

I own Somero Enterprises Inc (LON:SOM) at AJ Bell so have the same issue.

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peterg 4th Dec '18 6 of 35

As far as I'm aware it's only those with AJ Bell who have this issue, so I think trying to lay part of the blame on Somero Enterprises Inc (LON:SOM) is not really reasonable. Selftrade got mine to my account within a couple of days (perhaps 1 day slower than a normal £ div), and all the others I've heard reports of have managed much the same. This is clearly an AJ Bell issue.

The SOM letter suggests that the role of an intermediary is at least part of the issue here. I'm not clear if that is something AJB in particular use, or perhaps the other brokers get theirs paid directly? Alternatively they simply credit accounts on the payment date, as many do with £ divs. Either way the ball is firmly in AJB's court. Having said that, it's only fair to point out that I hold my SOM with Selftrade as I couldn't buy them in my Barclays account, so there's an argument AJB are ahead of Barclays on handling this!

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Laughton 4th Dec '18 7 of 35

In reply to post #424303

As far as I'm aware it's only those with AJ Bell who have this issue

Seems that they have the same problem with Taptica International (LON:TAP) dividends. Another broker managd to pay me my dividends on November 23. AJ Bell tells me that dividends on shares held with them likely to take another two or three weeks to be credited.

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willhampson 4th Dec '18 8 of 35

I have no experience with AJ Bell, but I find that the crediting of overseas dollar dividends to be entirely erratic across the brokers that I use. For example X-O still haven't credited my XLMedia (LON:XLM) dividend due on 2/11 but promptly credited by Somero Enterprises Inc (LON:SOM) and Taptica International (LON:TAP) (ouch today) dividends. Conversely, Charles Stanley - who I find generally slow with overseas dividends - credited XLM the next day after it was due; but with other overseas payers I have to constantly chase and it can take 3-4 weeks. IG can be similarly erratic.

I guess you can say "first world problems", but it really shouldn't be this complicated should it in today's world...

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Aislabie 4th Dec '18 9 of 35

I have an AJBell account and I too have not yet received my SOM dividend. I can see no reason at all why this absurd delay is not entirely the responsibility of AJBell.
- they are a large organization and should have a USD account into which these payments should be made and cleared. Three or at most five days to have cleared funds in that account would be reasonable. If not they should be in serious questions with their bank or other potential banks about their cash management facilities.
- the FX transfer should give good funds again in a maximum of five days. If not, then talk to the many companies in London who are on the lookout for this business.
Somebody has my money. It is not Somero and it is not me, everything else is AJ Bell’s responsibility and as a company looking for a squeaky clean IPO a public statement by AJBell’s management should demonstrate exactly who has benefitted from this cash for the past several weeks.

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LeoInvestorUK 6th Dec '18 10 of 35

AJ Bell tried to fob me off about this too and also ignored my request to report on other missing dividends. I have now made a formal complaint.

Has anybody tried switching from AJ Bell to e.g. HL? How long were they without access to trade?

(I recently completed a transfer of a Child Trust Fund from F&C's service to HL. There was a 2 week regulatory cooling-off period, one week for the instruction to be seen by F&C, another week to sell and settle then 3 working days until HL had the money and let me deal. I thought that was pretty good.)

Blog: LeoInvestorUK
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herbie47 6th Dec '18 11 of 35

In reply to post #425138

If it's anything like their dividend payments I would not hold your breath. I don't know, switching brokers seems to take a very long time, I have seen reports about Barclays which took many months.

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herbie47 6th Dec '18 12 of 35

In reply to post #424243

I have received the odd US$ cheque, one this year took about 4 working days to clear I don't see why it took 6 weeks for yours. Maybe it is the amount, mine was quite small about $25.

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sharw 6th Dec '18 13 of 35

iii allow you to keep money in 7 currencies including sterling, euros and US$. I think this comes from the TDW platform that they took over. Dividends are credited in their own currency and it is up to you to convert it if you wish, which can be done at any time. I only have experience of IAG (ex BAY) dividends but they seem to appear in the a/c much more promptly now.

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LeoInvestorUK 7th Dec '18 14 of 35

Still no dividend. AJ Bell are now blaming the registrars, tell me yesterday that:

All  funds have to be cleared from the receiving bank, currently the registrars receiving bank has a back log of cheques. 

Since the registrars choose who to bank with, this seems to contradict hawkipa's response from the IR:

neither we nor our Registrar have any control over the processing of the dividend payments once it is released to the brokers
Blog: LeoInvestorUK
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grumpy5 7th Dec '18 15 of 35

I am guessing you lot will not be chasing the AJ Bell IPO!!! ;-)
On a slightly different tack, some heavy institutional selling has made the shares even more of a bargain.

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