Investec Share Discussion Threads

[hamhamham1] 18/11/2021 08:01

Still in auction :)

[aleman] 18/11/2021 07:51

36p bonus for Ninety One looks about right, I think. Somebody please check!

[hamhamham1] 18/11/2021 07:39

Lovely, and annual divis back up to 25p area soon as well. What a return!!

[hamhamham1] 18/11/2021 07:39

Aleman, so that would be about 36p bonus return to sharholders?

[aleman] 18/11/2021 07:28

Given the group's strong capital generation; capital optimisation strategy; and in line with previous communication that 15% of Ninety One is surplus to our capital requirements, the Board has resolved to distribute the 15% holding to shareholders whilst retaining an approximate 10% interest.

The distribution will be subject to regulatory, shareholder and other approvals.

Announcements will be made in due course updating shareholders on the distribution terms and process.

I make that £360m.

[hamhamham1] 18/11/2021 07:18

Highlights for 30 September 2021 (1H2022) compared to 30 September 2020 (1H2021)

• Revenue grew 30.5% supported by the strength of our client franchises and improved market conditions.

• Adjusted earnings per share increased 134.8% to 26.3p (1H2021: 11.2p), ahead of comparable pre-COVID levels (September 2019).

• Wealth & Investment funds under management (FUM) increased 8.6% to £63.0 billion (31 March 2021: £58.0 billion) underpinned by net inflows of £1.5 billion, market recovery and good investment performance.

• Loan books within Specialist Banking grew 7.2% to £28.3 billion (31 March 2021: £26.4 billion) given increased activity levels and continued client acquisition in both geographies.

• The cost to income ratio improved to 64.0% (1H2021: 72.0%), with operating costs increasing 11.7%. Fixed operating expenditure increased 3.3% reflecting continued cost discipline.

• Pre-provision adjusted operating profit increased 61.2% to £336.0 million (1H2021: £208.5 million), 9.3% ahead of September 2019.

• Expected credit loss (ECL) impairment charges were 84.5% lower, resulting in a credit loss ratio (CLR) of 7bps (31 March 2021: 35bps; 1H2021: 47bps), reflecting strong asset quality and higher recoveries.

• Return on equity (ROE) was 11.2% for the period (1H2021: 5.3%) and return on tangible equity (ROTE) was 12.1% (1H2021: 5.8%).

• Tangible net asset value (TNAV) per share increased 10.2% (annualised) to 445.2p (31 March 2021: 423.6p). Net asset value (NAV) per share increased 9.3% (annualised) to 479.2p (31 March 2021: 458.0p).

• Maintained strong capital, funding, and liquidity positions.

• The Board has proposed an interim dividend of 11.0p (1H2021: 5.5p) resulting in a payout ratio of 41.8%.

• The Board has further resolved to distribute a 15% holding in Ninety One to shareholders.

[aleman] 18/11/2021 07:16

Interim dividend doubles to 11.0p. NAV up to 479.2p. Guidance now EPS of 48-53p. These shares tended to trade above NAV before Covid hit.

IF the final dividend also doubled, yield would be 7.3% at 355p

[hades1] 17/11/2021 18:01

Yes tomorrow

[hamhamham1] 17/11/2021 15:43

Update tomorrow?
If so and good, pushing near 400p OMO.

[boozey] 16/11/2021 22:16

And of course the benefit of N91's progress is that Investec own 24.1% of their shares.

[mo123] 16/11/2021 09:52

Quick first look N91. We see ample opportunities for growth if we continue to deliver for our clients.
We look to the future with confidence.
We have a healthy liquidity position.
AUM increased across all asset classes.
Saw significant inflows into global and thematic strategies.
Adjusted EPS improved by 21% to 9.7p and div to pick up for INVP 6.9p.

‘While the supportive market conditions of this reporting period will not last indefinitely, we see substantial long-term growth opportunities ahead,’ Du Toit said.

[boozey] 13/11/2021 22:31

Am also in Microfocus Mo, but in a much reduced position these days. Whether their current CEO has the ability to turn that ship around is a big open question for me. It is saddled with debt and I am far from convinced that one day they won't have to bite the bullet and go for a massive rights issue to clear it. At the moment the solution is to sell off fringe parts of the business occasionally as a way to pay off part of that huge debt.

Reference Investec, in recent times it has been better to travel than arrive and the most recent trading update effectively announced the results. So I am not envisaging fireworks on Thursday. But we will see! I simply see the company as one to hold for the foreseeable future. Been a great performer this year.

[mo123] 13/11/2021 11:59

Nice spot Boozey.

On Tuesday we have the N91 update, and Thursday INVP.

Unfortunately will have to be up early Thursday as INVP, RMG and MCRO are all reporting.

[mo123] 12/11/2021 10:18

Morning Boozey. I feel that any co. that can grow earnings by some 90% should be on a higher PE than 8. It's around 7 at the moment but still showing signs that growth can be maintained.

Sold some WPP a couple of days ago as it looked a bit toppy on the charts. Put the gains into RMG, which can have a decent run going into the Christmas period.

[boozey] 11/11/2021 17:39

Good to see Goldman covering the stock positively Mo. I could indeed have made a quick profit, but day trading is not really my style! I have held these since the bowels of the pandemic and prefer to set price targets which are subject to change according to market sentiment and company fundamentals. Once the price target is met then there is a decision to make. In case of Investec it is 420p

Results next week I believe.

Did you keep WPP by the way?

[mo123] 10/11/2021 09:40

GOLDMAN ups to 440p (402)- 'BUY'.
You could have made a nice quick profit if you had jumped in and out Boozey.

Investec Capital is setting up its first private credit alternative investment fund in India.

The fund will typically target senior, secured credit investments in India-focused mid-market businesses with expertise in niche segments.

“Private credit as an asset class is comparatively still in the early stage of evolution in India and is expected to witness significant growth in the coming years similar to the growth the asset class seen in developed and other markets," said Piyush Gupta, Head of Private Credit, Investec.

[mister md] 08/11/2021 13:02

First bought these in January @ £ 1.92, if only I'd put a lot more in though ... ;-)

[boozey] 08/11/2021 11:11

Morning Mo, I wanted to buy more - it opened at 337p so I decided against, which was a bad decision. But as Investec has done so well in the last year it now accounts for over 5% of my portfolio so that is probably on balance about right. But yes you are right... 50eps forecast now very doable.

[mo123] 08/11/2021 10:37

Co going from strength to strength, still on an attractive rating especially for next year. Slept in as usual.

[paulisi] 08/11/2021 09:33

Good set of numbers

[boozey] 08/11/2021 07:14

Significant upgrade this morning on EPS outlook!! Fantastic news!

[boozey] 02/11/2021 18:31

Investec trying hard to breakout. Almost up to 340 early doors but then dragged down later in the day - same picture as yesterday.

[mo123] 30/10/2021 13:55

Int's out on 18th Nov.

Boozey, well done with WPP, lots more to come next year as tourism,travel and auto sector advertisng picks up.

[boozey] 25/10/2021 23:35

Points well made cjd. Results in 3 weeks. Generally we are heading in the right direction.