Arbuthnot Banking Share Discussion Threads

[retsius] 01/6/2016 12:39

Very positive article about Arbuthnot by Simon Thomson in the IC today.
R.

[retsius] 27/5/2016 15:58

Sky ship
:-)

[skyship] 27/5/2016 12:47

No....because bought in March!

[retsius] 27/5/2016 10:05

Looking at morning trades,quite a few sells. Why on earth would you want to sell on this great announcement?
Please, before you all answer`beacause they need the money!`

[spob] 27/5/2016 08:23

Expect a positive update from ST on Monday or Tues

[retsius] 27/5/2016 08:23

Caradog
Agree that the special div for Arb. Shareholders was noticeably absent from any memo. A bit unclear.

However on re- reading the Annual accounts it states that a Special div. of 25p will be paid to Arb.holders on completion of the EDL sale. So we will just have to wait and see.

Sir Henry is a pretty shrewd operator and this sale on top of the EDL sale will bolster the balance sheet and provide a very 'satisfactory' set of accounts for the current financial year!

I await interest comments from Simon T in the IC. They should of course be very positive with this morning's news.

R.

[skyship] 27/5/2016 08:21

Time to sell is when there are a few buyers in town...

[saucepan] 27/5/2016 08:17

The market clearly likes this news, and I think that is all that is important. 1600p a crucial level to crack now.

[strathroyal] 27/5/2016 08:10

Some disappointment with the sale price but the market has never recognised the value of Arbuthnot's stake in STB anyway. Additionally i see that ARBB have the option to increase the amount of shares for sale if there is sufficient demand so 31.9% is the minmum amount to be sold.

Re the special dividend, I would expect shareholders to get some distribution from this sale and for that to be considerably more than 25p.

Overall, good for the company and us shareholders.

[luckymouse] 27/5/2016 08:04

woohoooo :)

[caradog] 27/5/2016 07:58

Arbuthnot will get the STB special dividend, but on a 20% rather than a 51.9% holding. What that means for the promised Arbuthnot special dividend is no longer clear. I was wondering why no announcement was made when the sale of EL was completed. Proceeds from the STB sale are being used for investment in ARBBs business so what, if any, special dividend is coming our way has not been made clear. It should be.

[spob] 27/5/2016 07:58

we will get some of that divi just a bit less now

[spob] 27/5/2016 07:57

Yes but the value of the STB stake is nowhere near reflected in the current ARBB share price

Remember that when STB goes ex dividend, the STB share price will fall by 1.65p anyway

[pyemckay] 27/5/2016 07:39

but we arent getting the special divi from sale of everyday loans.

[retsius] 27/5/2016 07:25

Spob
You must be grinning all day with that deal. Now priced at 16.10 to buy.
R.

[spob] 27/5/2016 07:19

I was surpised to be able to more than double my holding this morning at an offer price of just 1508p

[spob] 27/5/2016 07:03

Hidden value in STB is being realised

which is good news for ARBB shareholders

[topvest] 27/5/2016 06:50

Yes, all a bit odd though that we miss out on the Secure Trust special dividend. I would have thought the 10% discount was sufficient for the new investors, but no...they get a 165p dividend as well. On balance, I'm a bit disappointed. This is the value event we were all looking for, but i would have preferred a dividend en specie of the entire Secure Trust holding rather than the shares being sold at a discount. Nevertheless, I'm happy to keep following Henry Angest.

[spob] 27/5/2016 06:38

ARBB is selling a big chunk of STB (discount 10%)

[glasshalfull] 11/5/2016 15:51

...or alternatively register with Edison and read the note for FREE!



Regards,
GHF

[thomasthetank1] 11/5/2016 13:23

Read Edison's note on ARBUTHNOT BANKING GROUP PLC (ARBB), out this morning, by visiting hxxps://www.research-tree.com/company/GB0007922338

"With its long-term track record, Arbuthnot Banking Group (ARBB) places great emphasis on stability and experience and has also been adroit in taking opportunities that emerged in the post-financial crisis environment. The acquisition and recent sale of Everyday Loans Group has provided scope for additional organic loan growth at both Arbuthnot Latham and 51.9%-owned Secure Trust Bank (STB). While near-term returns on equity will be diluted by excess capital, successful development of loan books should underpin a stronger val..."

[davebowler] 10/5/2016 13:06

Edison;
2015 results
The group reported a pre-tax profit of £34.2m (£37.7m on an underlying basis), including Everyday Loans Group (ELG), an increase of 52%. Both the retail and private banks (Secure Trust and Arbuthnot Latham respectively) have made good progress (see pages 2-4). The sale of ELG was completed in April 2016 and is expected to generate a net profit of about £115m. Reflecting this, a special dividend of 25p is expected to be paid to ARBB shareholders.
Outlook
The main prospective driver for STB is the opportunity to continue to expand its loan books rapidly, further increasing diversification and the emphasis on asset-backed lending. The fact that it still has relatively small market shares in the areas it is addressing suggests good potential for profitable growth. At Arbuthnot Latham continued healthy growth in the client base, assets under management and the development of a commercial bank to serve entrepreneurial clients and SMEs are positive drivers for future income. On a more cautious note there are risks in the macro environment in the UK with the EU membership referendum a near-term source of uncertainty together with downward trend in UK (and global) GDP growth estimates. In the event of a sharp market correction, however, the group could be afforded the chance to make an opportunistic acquisition.
Valuation: Upside as surplus capital employed
Comparing ARBB with a broad peer group of challenger banks, specialist lenders and wealth managers appears to place it broadly in the pack in terms of price to book valuation. However, our ROE/COE and sum-of-the-parts valuations point to a value of about 1,670p, indicating 11% upside from the current level (page 8).

[retsius] 08/5/2016 07:15

Pvb
Yes that's what I thought.
Advfn is incorrect on this one.
R.

[pvb] 07/5/2016 18:53

Do we get the special divvy on Friday as under 'financials?'

There has as yet been no announcement of the special dividend.

13th May is the final dividend for the financial year.