|Quayle Munro Hldgs
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Real-Time news about Quayle Munro (London Stock Exchange): 0 recent articles
|stevie blunder: Lol!
I have no great insights, just commenting on stuff I read
I do expect Morris to be worth more than the current share price eventually
Hope to see a flotation in the next couple of years
I am a patient holder . 20 years so far
I would be a rich man if all my holdings had done as well ....|
|stevie blunder: With regards to the investment side, in fact that was emphasised as becoming more important. They have identified 8.5 million available for investment in companies they are advising (page 14) They are also starting a Friends and Family facility allowing very rich individuals to co-invest alongside QYM. This would eventually lead to some revenue in management fees.They have had some interest, but still early days. Investing in private companies locks them in as advisory clients when they come to exit.
I spoke to Andrew Adams, who joined with Van Tulliken, he made the point that he had accepted QYM shares at 1400p for his company, and it was now up to him to get the share price up and get his money back!
Each to his/her own, but I am happy investing alongside these folks. :-0
Edit : in answer to your question, I guess that is what Kemball thinks is needed to retain the talent. With his background at Hawkpoint he should know what he is talking about. Apparently a lot of the major shareholders support Kemball's plan. There will be a circular on the proposals later in the year with the new arrangements taking effect in the new financial year if approved.|
|stevie blunder: The employee share scheme is unlike anything I have seen before.
On the plus side they have to put up their own cash to buy shares, but they are basically being given/earning preemption rights. Preemption rights are a British thing and don't exist in America AFAIAA.
If that is what it takes to get and hold onto the talent, the I am prepared to go along with it.
Of course they only make money if the share price rises, and with their own money at risk they should be motivated.
On the subject of Morris, I think it is looking better and better. Although there is little in the presentation about them, the recently announced expansion of sites and the comment at the presentation about the interest rate swaps expiring makes me think that they will float or be sold in the next 18 months -2 years. I think the price will be well above the current valuation.
You could you e-mail or better phone Christopher Kemball. He is very approachable and seriously wants shareholder feedback, since the employee package needs to pass a shareholder vote.|
|britishb: They seem to paying sky high interest rate at Morrris (9% ?). I reckon if they refi that they start to throw off buckets of cash like the other builders. QYM share of Morris NAV is almost = QYM market cap. Then there's the cash, advisory biz and other investments in for free. Possibility to double from here and still look moderately valued I suspect.|
|joan of arc: Steve, thanks for the update. Do you know how Morris's bottom line profit compares with the last few years. Also I think QYM get a divi from them but I can't remember what it's worth per QYM share.|
|makingheaps: I even get the impression they would sell Morris if there was an exit route available so the transition to a pure advisory business is clear. To be honest you would then have to ask what the point of a quote was. I guess it makes trading options easier for the staff. The way I look at it is the value of the assets more or less supports the share price so I own an advisory business for nothing. Yes its risky in terms or earnings flow but over a three year rolling average they will make money. I suspect we will get more special dividends and a reasonably progressive normal payout so its a strong hold. Of course if you wait long enough and they stay in Morris the value of that could easily double in the next five years but it's likely to do nothing for the next two/three.|
|stevie blunder: Those are good results, the special divi is very welcome.
Professional revenue in the second half was around 10 million. Given that they have a strong current pipeline and are talking about organic growth and more recruitment, it would be reasonable to suggest they could make 20 million fees in the current year, even allowing for some lumpiness in transactions completing.
If you value the advisory business at turnover, that would be about 450p/share. Add tangible NAV and you get a share price target of about 1200p, which is OK I think.
Having said that, the CEO said in an interview with the Scotsman :
""In the past Quayle Munro was effectively an investment trust; now we are mainly an advisory business," he said."
I think that is right, but the result is that there is more risk in the business, so I will be looking to reduce to a more normal sized holding if they achieve my target (adjusting for the special divi). Ideally we now need a bit of press coverage and a few tips!|
|makingheaps: You worked that one out nicely Stevie! I had thought this might be a non core holding for Uberior given the banking crisis and the need for liquidity. I am surprised at the timing though and the fact that they accepted £5. With surplus cash on the balance sheet a share buy back was always on the cards but impossible due to the shares being so tightly held. This is the perfect solution. I imagine the 40k in treasury will be bought fairly quickly by staff as there is a long history of this. Excellent news, but no movement in the share price!|
|makingheaps: Not a great set of results. Could argue its a low point in terms of corporate fees and value of Moriss. The notes state NAV to be £8.01 but this includes intangibles and is not fully diluted. I prefer £5.12 using £25m assets and 4,882 shares. No movement in the share price today and It could stay like that for some time.|
|stevie blunder: The Scotsman did make a comment that the rise in QYM share price was due to the NR/Virgin link, and I think that is right.
Like you I don't see the takeover of NR by Virgin as goer, but you never know, and I am sure that Mr Norris will see we get paid whetever happens!
The AGM is 2nd Nov at 12 noon, are you going? I will try to make it.|
Quayle Munro share price data is direct from the London Stock Exchange