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|topinfo: DJ Giles Insurance Brokers Limited Statement re Possible Offer
RNS Number : 7188K
Giles Insurance Brokers Limited
20 July 2011
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.
Giles Insurance Brokers Limited
Response to statement regarding a possible offer for CBG Group PLC
Giles Insurance Brokers Limited ("Giles"), notes yesterday's announcement by CBG Group plc ("CBG" or the "Company") and confirms that it is in discussion with CBG about making a possible offer at a price of 32 pence per share in cash for the entire issued and to be issued share capital of CBG, subject to due diligence and the CBG Board's recommendation (the "Pre-Conditions").
This potential offer price represents a 54.2% premium to the share price as at the close of business on 19 July 2010.
The Pre-Conditions are waivable at Giles' discretion. This announcement does not amount to a firm intention to make an offer and accordingly, there can be no certainty that any offer will be made for the Company even if the Pre-Conditions are satisfied or waived.
|longshanks: Anyone else monitoring this?
A new institutional investor announced today: Hiscox has sold its stake to Polar Capital.
Is this the start of a recovery?
At £3.3m market cap - £1.2m cash (as of last December), operating profitably and paying a 3.5% dividend this must have some potential. Only blot is the shameful state of their balance sheet with short term liabilities not adequately covered by current assets.
They have a crunch renegotiation of a £2.3m bank loan due in August. If that is dealt with then this should dramatically improve sentiment (maybe why PC have bought a stake at this point).
Company has just moved their brokerage wing into brand new offices in Blackpool and are talking about a "recruitment drive" later in the year.
I have built a decent stake in this over the last four months and will be continuing to increase my holdings whilst the price is below 22p. There is no broker coverage but based on performance last year I am expecting EPS of 5p for this year giving a forward PER of less than 5.
Should be good for a hike in the share price to 50p or 60p on that basis - esp if sector sentiment improves.|
|geovest: The problem is that earnings just about halved, which means we are looking at full year adjusted earnings of around 5 - 5.5p/share. That means thst at a share price of 50p a pe of 10 puts it at the more expensive end of aim. Competitor Jelf is still trading at a forecast PE of 5.
It will need someting really positive such as a bid approach, which is not very likely, to get the price going.
Anyway, interims shows that broking held up reasonably well but financial services now loss making. Results not bad considering.|
|bigman: thanks Geovest interesting views not so sure about BNH not being built on acquistions as from the accounts I see they spent £14M on them last year and £4m the year before, that is quite a lot of supplimention. That is why I like them as the consolodation by acquistion builds the size quickly that results in the increased margins and you supliment that with growth rather than the otherway round, From last accounts CBG say 21% increase from continuing operations and over 17% organic growth, that is impressive. Re HWY do you not think it is bottom of cycle been and gone and rates are only way to go is up. I agree with you totally on THB maybe they should be bought by BNH. I like the dividend and when you see what was paid for carol nash then THB HWY have lots of value in the share price. IMHO|
|bigman: take your point on jelf but i think there is value in the share price, things will develop if BNH is taken out. geovest what is your view on THB this delivers me a nice dividend and helps balance my portfolio of capital growth and investment income. HWY i really like after CBG for potential for gains.|
|bigman: Looking back at the deal nearly two years ago it looks one smart deal to me getting an insurance broking business with net assets of £250k profits of £150k and Premium of £10m and seeing what is being paid by axa and groupama for Lark and carol nash etc ( see the BNH thread) that business would be worth at least £4m ( and that is heavily discounted) if it was for sale today. so you could say your porsche man has lost at least £2m. and we got all the benefits as shareholders and record profits every period since and a tripling of the share price bring them on i say
fill your boots with insurance shares there is only one way they are going jelf, broker network, highway, etc the big boys are coming to town to mop them all up IMHO and if they dont who cares the only way is up.|
|knitcraft: This co. has just been bought to my attention by a member of the" Manchester financial mafia", whom in the past, has always seemed to be well informed.
I know nothing about the company other than it is involved in a number of corporate areas, and the insurance broking side is now of little importance.
He assured me that these should be an excellent 6 month prospect, and without giving any reason ( for obvious reasons ) suggested a price nearer £3 was easily attainable.
The shares are very tightly held and the market is highly volatile and a trade in as little as 2500 shares can move the price .
The share price has been on a vertical climb for 2 years and is now pulling out of a 25p correction.
Seems that only a small amount of buying could see them back at 160p.
( I have managed to get a very modest holding this am.)
Any info appreciated.|
|mr kingsley2: Something is about to happen the way the share price has moved more aquisitions? any body agree|
|disraeli: hello fellas, seems like you guys do all the conversation round here, anyone know what's going on with the share price today? Big big rise but not much volume.|
|helpjoe: Share price seems to be holding up well compared to the rest of the market. Is there news around the corner? Or just shortage of stock. Anyone of a similar view?|
CBG Group share price data is direct from the London Stock Exchange