Broker Network Share Discussion Threads

[ramu231] 08/11/2007 14:17

Geovest,

Since The Markets in Financial Instruments Directive (MiFID) came into effect on 1 November 2007, and replaced the existing Investment Services Directive (ISD), are large volumes/transactions still subject to delayed reporting? Thanks.

[diogenesj] 05/11/2007 11:52

Yes, one of their discretionary clients has been made to sell 1,200 shares to another. :-)

[leedskier] 05/11/2007 11:30

HARGREAVE HALE now have more than 7%

[geovest] 04/11/2007 22:12

Thanks lomax. Another example of a journalist not understanding the business he is writing about. BNH have NO exposure relating to risk underwritten apart from some sliding scale commissions and profit commissions based on underwriting performance.

[lomax99] 03/11/2007 14:56

The FT's weekend share section had the following:

'Good value with defensive qualities - Broker Network, an independent network for community insurance brokers, has been attracting admiring glances at a time of growing pressure on premiums. Three weeks ago, the company said it had received an approach, causing its shares to jump 9 per cent on the day. Eleven days later the offer - from a mystery party, rumoured to be rival Towergate - was rejected. The share price of the company, which has a market capitalisation of £77m, is now sitting below where it was before the bid announcement. It is, however, unlikely to stay depressed for long. Broker Network has defensive qualities. By attracting smaller insurance brokers to its network, members get a slightly higher commission rate on sales, while larger insurance companies can outsource work through the organisation. As a result, full-year 2007 results revealed sales up 45 per cent at £10.7m and group pre-tax profits doubling to £4.8m. But risks remain. The retail business leaves it open to the full risks of insurance underwritten by those members, higher costs and cash-flow drain. The shares trade on 11 times prospective earnings for 2008, however, and still look good value.'

Not sure about the comment about being left open to the 'full risks of insurance underwritten', surely it is the insurer who bears the end risk - unless they have laid it of with re-insurance themselves - i.e. not BNH? (or is this article just referring to the Lloyds operation?

[geovest] 02/11/2007 10:43

You are welcome. Something else to mention in case it is Towergate and the do find the money somehow. I watched a recent interview with their chairman and he said that they only buy highly successful companies and only pay top dollar. "Price should never be an issue" he said.

We await developments, but I still say that I would rather make a lot of money from this over the next 5-10 years that a quick buck now.

[dreggspicker] 01/11/2007 19:08

Thanks for that Geo; I really can't see them having the clout to buy BNH.

[lomax99] 01/11/2007 15:46

Thanks Geovest.

[geovest] 01/11/2007 15:03

Lomax, I hd a quick look at Towergate's financials for last year.



I think there is now way they can make an offer except if it is some sort of reverse take-over. They had revenue of £237m last year and taxed profit of only £5m because they had to pay £23.6m in interest. They have net debt of £474m, their capital and reserves were £27m, giving them a gearing of 1756%. No way they will be able to borrow another £100m+ to buy BNH. The only alternative would be to raise a lot of capital or strucure a reverse takeover, which will still leave the combined entity with a massive amount of debt. Not likely.

[lomax99] 01/11/2007 14:08

I note that that well know basket case Erinaceous (ERG) has just lost another 20 staff, this time on the Insurance side with the staff grabbing a life raft offered by Towergate.

Towergate were rumoured to be the party interested in BNH, I doubt that the extra 20 staff will provide enough of a distraction - however if they do come back with an improved offer for BNH it needs to be at least 40%+ higher than they existing share price, hopfully they will have lost interest.....

[geovest] 01/11/2007 10:18

BNH buys George Williams, based in Denbigh, which has been a Member of Broker Network for three years.



Good to see a lot of activity on the acquisition front.

[diogenesj] 31/10/2007 23:38

Quite right, Geovest and wwiu. Just my pedantic streak coming out. The problem these chaps have to struggle with is that spell checkers can't really cope with apostrophes. Chartered status sounds like good news however it's spelt.

[geovest] 31/10/2007 14:18

I don't give a t*ss how they spell it as long as the £ sign is in the right place.

[which way is up] 31/10/2007 13:37

I agree, but I'm afraid that's not suprising these days.

Although, so long as the news is good I'm not too concerned how they punctuate it.

Which Way.

[diogenesj] 30/10/2007 16:09

The rigorous criteria don't seem to include knowledge of the use of the apostrophe.

[geovest] 30/10/2007 11:22

Another feather in the cap for BNH



"The Chartered Insurance Institute has awarded Chartered status to broker TL Risk Solutions.

Chartered status is an exclusive title only awarded to firms which meet rigorous criteria relating to professionalism and capability. All Chartered Insurance Brokers commit to the CII's Code of Ethics & Conduct reinforcing the highest standards of professional practice in their business dealings.

Martin Wright, FCII and Managing Director of TLRS commented: "As a Chartered Insurance Broker, TLRS can signal it's commitment to the highest levels of client service and to the development of the careers of all our employees. This title aligns perfectly with our brand values and will allow us to further distinguish the TLRS proposition from that of our competitors."

To date, less than 50 firms have achieved Chartered status, indicating that this is a highly exclusive award reserved for the leading firms of the broking industry. The award allows both TLRS and the industry to be viewed on a level with other professional practices such as accountancy and law."

[diogenesj] 28/10/2007 14:11

Worth a look, Liars, although very illiquid. I bought a few last week. After BNH's strong rise on the takeover story, JLF looks a good deal cheaper.

Sad, posting on a Sunday afternoon, isn't it? :-)

[liarspoker] 28/10/2007 12:59

David Litterick was very ill informed ( or just plain too lazy to do proper research ) with Questors recent SGI avoid note. His forward multiple was wrong, he just focused on the stamp aspects not all collectables and he made no mention of the continued 25% growth forecasts ( 37% for 2008 if you take the new taxation into account ).

I'll have a look at Jelf though. :O)

[diogenesj] 28/10/2007 12:42

Jelf looks pretty good value too, S.

[geovest] 25/10/2007 08:55

There we go! Bid/ask price 490-500, someone wanted 300 and had to pay 10p over at 510.

[geovest] 24/10/2007 16:50

What is interesting to see is that sellers tend to get around 3p inside the spread whilst buyers have to pay the full price. That tend to confirm that there are a lot more buyers than sellers out there at the moment. Should run up a bit more tomorrow.

[diogenesj] 24/10/2007 16:41

Yes, that must be right, and as you say there is no volume to speak of.

[geovest] 24/10/2007 16:16

Dio, it must be declared irrespective of how you buy or if you get someone else to buy on your behalf. The volumes are however too low to be anything suspicious. I think its just shortage of stock after they shook out all the profit takers. Mine's not for sale!

[diogenesj] 24/10/2007 16:06

Well, I know that, GV, but I did wonder whether someone was actually buying large amounts anonymously through a nominee account. But I suppose they would have to declare themselves if they were.