Arbuthnot Banking Share Discussion Threads

[renew] 22/3/2014 10:24

Thanks Hutton.
Of course. So the market value isn't reflected.

[cnx] 21/3/2014 19:05

does anyone have access to a brokers note they can share?
I bought more today, adding to those held in 2010 and 2012

[huttonr] 21/3/2014 17:39

renew

Surely the accounts are consolidated - it is a 67% holding.

[mikeja] 21/3/2014 16:57

Simple formula is that every ARBB share is worth 70% of an STB

[renew] 21/3/2014 11:11

Anyone know the accounting practice for their STB holding. Its obviously not included in the net assets per share.

[topvest] 20/3/2014 21:40

Yes, great value opportunity here. Two growth businesses at a > 50% holding company discount. Just wished I had recognised the opportunity better 3/4 years ago. Whilst it is good value now, it was a superb opportunity in the recession.

[gary1966] 20/3/2014 21:19

cnx,

Slightly out as they own 67% of STB. They also have the £14.4m of cash from the sale of 3% stake in STB a few months ago. Then there is the Arbuthnott Latham business thrown in as well and so in reality they are trading at more than a 50% discount to the sum of the parts.

Gary

[cnx] 20/3/2014 20:50

is this correct?

STB market cap #442 million
ARBB ownersip of STB +/- 65% or #287 million
ARBB market cap #163 million

or 43% discount

?

[pvb] 20/3/2014 15:12

ARBB Results:



STB Results:

[trader_3] 20/3/2014 07:51

Final Results - 200314

ARBUTHNOT BANKING GROUP

Audited Final Results for the year to 31 December, 2013

Significant Growth

Arbuthnot Banking Group today announces a 25 percent increase in profit before tax of GBP15.7m. Significant progress has been made across the Group during the year as we continue to realise our ambitions to grow.

Arbuthnot Banking Group PLC is the holding company for Arbuthnot Latham & Co., Limited and Secure Trust Bank PLC.

FINANCIAL HIGHLIGHTS

-- Profit before tax GBP15.7m (2012: GBP12.6m)
-- Underlying Profits of GBP18.6m (2012: GBP11.6m)
-- Operating Income exceeded GBP100m for the first time (2012: GBP65.6m)
-- Achieved positive operating leverage of 14%*
-- Earnings per share 52p (2012: 53p)
-- Total dividend per share 44p (2012: 25p) including a special dividend of 18p
-- Total assets increased to GBP1.1bn (2012: GBP1.0bn)
-- Net assets per share 570.5p (2012: 449.3p) an increase of 27%

[mikeja] 19/3/2014 16:40

ARBB have a wealth clientele basis which should definitely benefit from the budget.

[mikeja] 10/3/2014 16:23

Gary,I take a long term view on this stock,by 2018 they should be earning north of £2 a share with a value around £40.They have a lot of cheap money available on fixed terms for the next 5-7 years so they should benefit from rising interest rates.I must admit I topsliced a few around £15 and bought them back around £11.75.
Overall I have 30k shares and friends and relatives another 60k.

[gary1966] 10/3/2014 06:36

Well if he thinks STB are quite pricey then he could always recommend buying them at a 50% discount via ARBB.

[topvest] 09/3/2014 17:32

It would make sense for Arbuthnot to simply demerge its Secure Trust shares and to focus fully on it's other business. Anyone think this is likely?

[trader_3] 09/3/2014 15:27

Investors Chronicle Tip 070314

Secure Trust Bank

Aim is home to a great many companies, but few investors would expect to find a well capitalised and solidly growing UK focused retail bank among its number. But Secure Trust Bank (STB) has made a name for itself through a period of rapid but sustainable growth as its well funded operations have found themselves well placed to take business from retrenching and recalcitrant high street giants. Secure Trust had 325,000 customers in the middle of 2013 and its £366m loan book, primarily motor and personal loans, was offset by retail deposits of £380m-plus. There are drawbacks to Secure Trust's shares in that they are tightly held, with Arbuthnot Banking Group holding more than two thirds of the stock, and are quite pricey. But for those looking to lock away a good growth story, it could be tempting.

[gary1966] 28/2/2014 22:26

mikeja,

Agree this looks very undervalued and have taken a position over the last week at £11.06-£11.25. Can't understand why ARBB trades at such a discount to the sum of the parts. I am thinking the tone that accompanied the sale of STC shares back in December may mean that they are going to liquidate more of this position which will hopefully be the catalyst for the discount to narrow. Currently trading at 57% of the STC holding and as you said probably most of the £14.4m from the share sale still in the bank and then Arbuthnot Latham that is a profitable business on top of that. This company is trading at well below 50% of the sum of the parts and that discount has got to narrow in time. STC is trading well and so I see no reason for the discount to narrow as a result of the STC share price falling. Time will tell as ever.

GLA

[mikeja] 28/2/2014 07:56

In the current rush for tech growth stocks ARBB which has and will have a similar growth pattern is being overlooked.Also it has a higher certainty of delivery.On a pe of around 11 for 2015 it looks really cheap since it will still be growing around 35% pa.I think we will find the div being increased at much faster rates than currently predicted.

[pvb] 19/2/2014 22:37

Ansbacher? No. Does he mean Secure Trust Bank?

[gary1966] 19/2/2014 20:41

Skyship,

Post 171 still showing Ansbacher.

I know there will be reference to Aadvark in the accounts somewhere but struggling to pin this one down as well. Do you have a quick reference point for this?

TIA

Gary

[skyship] 19/2/2014 09:02

Gary - sorry about that - at first wasn't sure what you were talking about; then realised - and sure enough I typed Ansbacher instead of Aardvark. Have remedied...

[gary1966] 18/2/2014 22:26

Skyship,

Can you help me with the connection between ARRB and Ansbacher please as I am struggling. NAV of £4.50 attributable to ARRB is considerable. Is there some connection via Arbuthnot Latham?

Thanks for any help you can give me.

Gary

[mikeja] 28/1/2014 21:10

Not to forget the £14.4m ARBB raised through recent sale of STB shares,that is worth 90p per ARBB share alone.

[cnx] 27/1/2014 17:46

sharescope shows arbb up 1.17% at #11.20
and STB up 2.71% at #27.52

so compared to last Friday arbb is further away?

[skyship] 27/1/2014 07:56

Figures actually a little better than that as the Arbuthnot business itself has value. Posted this on the 22nd:

"Well, I last sold out of ARBB in the run up to the New Year - but am now back in again.

I don't see anything has changed and which might account for this fall; other than a TA interpretation of a double top; and the likelihood of the 61.8% FIB Retracement - now achieved.

With the NAV of c£19.00 in SBT stock alone; at 1170p we are now back at a 39% discount. Add in the c£4.50 of equity in Ansbacher and we are again trading at a 50% NAV discount!"

[cnx] 27/1/2014 01:06

have I got this right?
mkt cap of STB #419 million, ARBB owns 70% or #293 million
mkt cap of ARBB #165 million,
#165 divided by #293 equals 0.56 or a 44% discount

last Friday ARBB dropped 7.6%, STB dropped 2.6%