Quayle Munro Share Discussion Threads

[makingheaps] 04/10/2007 19:20

He certainly looks well connected! It would still be nice to know what we're up to. I take comfort from the fact that existing shareholders gave up shares for him so they obviously expect higher returns per share in future on their reduced stakes.

[stevie blunder] 03/10/2007 15:44

Here is a profile of the guy who started First Eastern, looks like a serious player:



He even makes it onto YOUTUBE:



World Economic Forum interview with Victor Chu

Google throws up a lot of stuff about him and First Eastern

[makingheaps] 03/10/2007 14:07

I would have thought this Chinese move merited an announcement. The Herald article has little detail. Maybe they don't want to alert people to what they are doing. Are they going to act as advisors, fund managers or investors? Sounds exciting details required.

[stevie blunder] 03/10/2007 10:22

Quayle Munro has eye on China PAUL ROGERSON, City Editor

October 03 2007

Quayle Munro, the AIM-listed investment bank, has secured a potentially lucrative route into the Chinese market through a tie-up with a Hong Kong-based business.



Explains yesterday's announcement.

On the subject of NAV, there will be a dilution of about 10% after the issue of shares for the New Boathouse acquisition after the year end. Combined with the probable fall in the carrying value of Morris, I would not be surprised with an NAV figure closer to 10 pounds a share at the time of the interims in Feb. (that is before the special divi, so maybe 850-900 after)

However that is a long time away, and there should be some good news on other fronts before then, like a disposal of Submerisible TV, hopefully at a premium to carrying value, and a disposal of the stake in AMG systems, also at a premium. The issue about managing the PFI assets could be resolved, or there could be early payment of the outstanding fee. There could even be some corporate activity around Tayside Flow.

[wiganer] 29/9/2007 20:28

Looking juicy.

[topvest] 29/9/2007 18:18

I would say Quayle Munro have had a very good five years. The immediate future doesn't look as good as

- Morris are fairly exposed to a housing downturn;
- PFI business has dried up.

Personally, I think they should have exited Morris over the last 2 years. May still continue to go well, but sooner or later they need to crystallise the massive gain, before it becomes smaller. Housing stocks are cyclical!

[makingheaps] 21/9/2007 08:42

For sure they are more exposed to the Morris investment than they are comfortable with and have said so. But this is a consequence of the success of Morris so lets not complain!
I am not too concerned by the Morris situation for several reasons. First they have just paid a maiden dividend. The buy out of 3i left the company heavily geared and there would have been very restrictive covenants to meet before the banks would allow any payments to shareholders. Therefore I judge that the debt level is well under control and manageable. Second although I subscribe to the view that house prices will fall with fewer mortgages available in the coming months I still think the fundamental demand for new housing outstrips supply and therefore the outlook for housebuilders is positive. On this basis I expect quoted PE ratios to improve from current levels between now and March of next year. Third I expect interest rates to fall from current levels which again will be seen by the market to be positive for housebuilders. Fourth as I posted yesterday the potential fall outlines in the results of £4m is only £1 per share. So it's impoertant but not catastrophic.

[forensic] 20/9/2007 22:36

QYM has achieved a compound annual growth rate of 20% since 1993. There aren't many companies that have achieved this excellent performance. Short term it looks like that they will take a breather, but the big gains in shares come from holding long term performers for the long term. I'm very glad I bought this share when it was approx £2, and have held (and bought more) ever since despite short term ups and downs. I have had my money back in dividends alone. The management deserves a lot of credit.

[topvest] 20/9/2007 21:19

First signs...

"We anticipate our unlisted portfolio will continue to make steady progress, but
the housing market is slowing and this may affect the rate of profits growth at
Morris Homes."

Too exposed to this investment imo.

[makingheaps] 20/9/2007 19:09

Results today seem to be in line with expectations. NAV of £12.66 is about where we are trading stripping out the November payouts. Good to hear that the acquisition is going well and that a transaction in Submersible is imminent. On the other hand I don't like the sound of the negotiations on the fees for Pfi, or the market conditions for Pfi work generally and perhaps most worringly of all the potential drop in value for Moriss. £4m is £1 a share. Then again I think housebuilders are a buy right now. Traditionally they outperform the market in the Jan - Mar period and I think the fundamentals are still strong, ie demand outstrips supply.

Overall I forsee a period of sideways movement for a period, certainly not much upside. The key is whether they can replacve the Pfi management income with something long term and how well the acquisition grows. It may take a while for that to emerge.

[stevie blunder] 26/8/2007 10:48

Final results were on 14th Sept last year. This year's should be interesting, I am looking for:

Trading update on New Boathouse Capital

Valuation of the various unlisted companies, especially Morris of course.

Trading update at Morris, (they usually give an estimate of 6 month results)

Progress with Tayside Flow clinical trials


The uplift in unlisted companies valuation was estimated at 3 million at 9th July, and asssuming the have been conservative, that should hold when the accounts are released. Morris made £2,1 million higher pretax than had been assumed, and looking at the valuation method;

" PER based on an average for listed equivalent companies as at 31st
December 2006 but discounted, first because Morris is unquoted, secondly because it is more heavily geared than listed equivalents and thirdly for the
prospective nature of the profits on which the valuation is based. In respect
of the valuation as at 31st December 2006, this has resulted in our applying a
PER of 4.9"

Also with the retained profits their debt load should be starting to decline,

Of course there will be about 10% net asset per share dilution caused by the acquisition, but hopefully it will lead to some real growth in the pretax (ex asset growth) next year.


It helps me to get these thoughts down on black and white, even if it is not adding much to our understanding, since I'm sure there is nothing new there ;-)

[makingheaps] 24/8/2007 14:48

Interesting article but doesn't give much away regarding future direction. I wonder if the debt crunch has impacted their ability to do deals? I'm also a little fearful of the valuation placed on Morris. The market PE for housebuilders has fallen, trading is unlikely to be substantially better than last year and arguably the discount applied for the amount of debt should increase due to its cost and the lack of takers for a refinancing.

Never the less the share price has held up extremely well through the turmoil

[stevie blunder] 13/8/2007 09:46

Long Scotsman article on the new boss:



IT'S A long way, literally and figuratively, from the splendour of Edinburgh's Georgian Charlotte Square to an office block tucked away behind a nondescript shopping centre in London's Shepherd's Bush.

Here, on the first floor of the Shepherd's Building, is the new nerve centre of Quayle Munro, the boutique Scottish investment bank, which last month acquired former City high-flyer Peter Norris's corporate finance company New Boathouse Capital.

The marriage unites one of Britain's most prestigious addresses with one of its more workaday, but there is nothing anonymous about the new chief executive of the combined group, whose appointment has rekindled memories of one of the City's biggest scandals.

Norris, once described as 'the cleverest man in the City'........................

[makingheaps] 18/7/2007 10:35

Very plausible but obviously doesn't trust them enough to buy in their own names!

[stevie blunder] 18/7/2007 10:32

I seem to remember that he has in the past bought shares as gifts for family members, so maybe a nest egg for grandchildren?

[makingheaps] 17/7/2007 22:49

I'm a bit surprised I Q Jones bought 300 shares in two separate transactions. Why not save on dealing costs and buy them together? Can't imagine such a paultry amount would make a difference to his wealth anyway. Puzzling. Maybe just to show token support?

[stevie blunder] 17/7/2007 17:43

Joan,

Google "companies house", go there and download Morris´s last accounts available, probably from year end 2005. There are a number of Morris companies, make sure you look at the right one " Morris Group Limited " It only costs one pound for the down load.

There is a lot of debt but I don´t have the figures to hand since I am on my hols :-))

The 2006 accounts will be there later in the year.

Bye from sunny spain....... :-))

[joan of arc] 16/7/2007 21:43

Topvest
If you sold today it has not shown. Also that will make you be the first person in years to sell more than 100 shares without bringing the share price to its knees.
Your observations are sound but as a continuing holder could you please fill me in a bit more about this Morris debt exposure and where I can find out more about their 'health'.

[topvest] 16/7/2007 20:27

Decided to sell mine after the good news and after looking again at the weekend. It's all gone very well for QYM, but a bit worried by the £20m+ exposure to Morris, given they have a debt mountain. Also didn't fancy paying higher rate tax on the dividend, when taper relief was available.

May get back into QYM when they get their new strategy going. Looks a good prospect going forwards, although you get the feeling that a year of transition and consolidation is approaching. Good luck to those that remain.

[topvest] 15/7/2007 13:35

Directors buying a few is a good sign.

[topvest] 15/7/2007 13:35

Yes, looks a good deal. Trading news mixed - poor underlying CF trading, strong results from Morris and exceptional results from other investments.

[makingheaps] 10/7/2007 17:23

I was also a bit disappointed by the issue price of the new shares £12.50. Shouldn't these have been issued at the mid market price? On the other hand perhaps I should be grateful they weren't issued at a discount. It is a bit odd to be simultaineously returning cash to shareholders while issuing new shares to fund an acquisition.

I have been hoping for years that they would do something like this, espescially open a London office and broaden the base of the corporate work. I am very positive about this move. One other concern however is how the cultures of these two firms will sit together. The acquired business is not used to the reporting issues surrounding a quoted company and QYM has been very conservative in the past. It will be interesting to see if we get a little more news and action now.

[makingheaps] 09/7/2007 17:55

Steve, Have a great holiday!

Just read the announcement and am delighted the management seem to be taking action at long last. At first glance, if they add £1m profit for £7m - £8m revenue that looks a good deal. Slightly disappointed that the new shares rank pari passu for the special divi.

Still can't figure out why Bank of Scotland want to hold 25%. Maybe its just off their radar

[stevie blunder] 09/7/2007 08:45

Very nice indeed, although it looks as if I will be paying 40% tax for the first time in ages :-))

lovely send off for my holiday, something to take my mind off the Ryan Air to Spain flight this afternoon,

all the best