R&q Insurance Share Discussion Threads

[speedsgh] 02/3/2015 12:53

Struggling to get my head around today's announcement. Have they had a takeover offer for the whole company or are they just talking about RQMS which has now been sold? I have read rns several times but still confused. Might just be Monday morning fogginess? Would appreciate anyone else's take on it.

Completion of Sale -

"Following a full evaluation process, the Board has determined that the growth potential and value of the business is significantly greater for a large established underwriting group than for the Group itself. This has been reflected in an offer for the business which the Board believes delivers the best value for shareholders."

[envirovision] 13/11/2014 08:36

So they bought a pig that they cant get rid of, hmmm

Also recent market conditions, all very sketchy stuff. Sounds like they are paving the road for further profit warnings ahead there then.

I suspect this has a lot further to fall then, probably a good decision, I wont be buying!

[jonwig] 13/11/2014 08:34

Is this the third "restatement"? I think so.

The question is, have they spelled out all the problems and cleared the decks? I assume they know that would be the wise approach.

[lord gnome] 13/11/2014 08:11

Ouch! I'm out.

[coolen] 26/8/2014 22:41

Any chance their dividend pledge is because they've promised it to
their fund manager backers ?

But if EPS well-covers the divi, then great !

[speedsgh] 26/8/2014 12:38

"We remain committed to maintaining total distributions to shareholders of 8.4p per share for 2014 and, as operational progress converts into revenue and profit growth, to resuming growth in annual distributions from 2015 onwards."

Bought these for the long term income so, all things being well, will be happy to see dividends start to grow again next year. Happy to sit tight for now + add if these should get oversold at any point.

[lord gnome] 26/8/2014 08:09

Yes, a disappointment to me. I can't see the share price doing anything positive for some time.

[this_is_me] 26/8/2014 08:05

I don't think that you can value the company in the same way that you can most companies since here results depend on what deals can be made. These do not come in a steady predictable manner. Results have always been up and down (but more up than down) over the years.

[jonwig] 26/8/2014 07:37

H1 results are here in the header, but they haven't appeared where I normally look (Investegate).

I don't think the market is going to like them: headline loss of £0.3m seems unexpected to me, though there's an IFRS profit of £0.484m.

The say: The second half of the year is expected to be considerably stronger, driven by increased service and fee income. As a consequence, we still anticipate that our full year results will meet market expectations, although this is inevitably contingent on completing a number of well progressed legacy transactions before year end

That little word "still" and the qualification "although" sound like a massaging down of expectations. At present these seem to be £8.46m pre-tax profit for 2014 and £12.26m for 2015, which is a bit far ahead!

The proposed "dividend" of 3.4p, being uncovered, will reduce NAV yet more and make the share price too far ahead of events.

[lord gnome] 04/7/2014 08:22

Nice acquisition and the market seems to agree. I think the trick here will be how much they can leverage the acquisition and develop other business lines in the US market.

[18bt] 04/7/2014 08:02

9x EBITDA looks a little expensive but 1.2x NTA looks more reasonable. Still this is the sort of business which should produced stable returns.

[jonwig] 04/7/2014 07:35

It does: I've an idea that $25m is a lot larger than their usual target size. RQIG themselves have a MCap of $190m or so.

[this_is_me] 04/7/2014 07:31

That looks like a good acquisition.

[chector177] 02/7/2014 16:24

nice move up today, any ideas why?

[chector177] 03/6/2014 08:10

I mis-read it first time.

[jonwig] 03/6/2014 07:26

Oops - sorry, I too my specs off to clean them.

But I think that's where the RNS yesterday comes from.

I'm editing out my post #387, but you take my point about Phoenix?

[adam] 03/6/2014 07:23

jonwig,

Situation previous to the triggering transaction : 8,333,333
Resulting situation after the triggering transaction : 8,833,333

I make that a purchase of 500k

I think because an "8" looks so much like a "3" it is easy to miss.

[jonwig] 03/6/2014 07:20

EDIT: incorrect info - age-related.

[adam] 03/6/2014 06:54

Phoneix bought 500k bringing them to 12.3%

[coolen] 29/5/2014 19:18

LG, yes I too read it as a seller of 500/- and related buyers of 230/- x 2 and a 40/-.

Marked at the bottom end of the quote, so probably instigated by seller, which could be bearish.

Given similar trades totalling 400/- in recent days, JonWig is probably correct in predicting a "substantial shareholder" RNS shortly.

[adam] 29/5/2014 18:14

would have been a put through as clearly not particularly market price sensitive. no way would you be able to sell 1m shares to the market and only drop the price tuppence.

also have a look at phoenix PHNX. They are in closed run-off insurance too.

[lord gnome] 29/5/2014 17:19

I hope you are right jonwig, but I read it as a breakup of 1 million sold. Surely a 'put through' would not have moved the price at all?

[jonwig] 29/5/2014 15:59

Lord G - probably not!

I read three separate trades at the same price reported at different times from 12:21.
More likely a transfer between related parties at an agreed price - since it's 1.3% of the equity we might get a report.

A 'dump' of that many shares would have meant a bigger drop, three hours earlier or more!

[lord gnome] 29/5/2014 15:40

Tick down today. We have a big seller. Somebody has just dumped 1 million shares at 145p.

[dangersimpson2] 01/5/2014 00:12

I think there is usually a slight advantage to the company if you opt for the income option if you are tax neutral due to isa or sipp since it doesn't reduce the share premium account so I usually opt for that in such cases.