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24/9/2018
14:17 | thefartingcommie: Good morning!
We have plenty of candidates for coverage today.
Provisionally I will cover:
Duke Royalty (LON:DUKE)
Miton (LON:MGR)
XLMedia (LON:XLM)
Xpediator (LON:XPD)
Kape Technologies (LON:KAPE)
Miton (LON:MGR)
Share price: 71p (+7%)
No. of shares: 173 million
Market cap: £123 million
Half-Year Report
This asset manager had an AuM update in July which covered some of the headline figures in today's report. We discussed it at the time - see here.
It is enjoying a great bit of momentum with AuM up 35% at the end of H1, over the previous 12 months.
We have clear evidence that the company is growing market share and beating the competition in its UK strategies. The UK Investment Association records aggregate net outflows, while Miton itself had good net inflows.
I've mentioned before about the operational leverage of fund management companies: they build a platform with a lot of fixed costs but the potential to take on huge increases in AuM. This means super operational leverage.
The only major hurdles to this are A) whether the strategies can scale up (and this is a little bit questionable in the case of Miton, which has traditionally had a lot of emphasis in small-caps), and B) the fact that fund manager pay goes up with larger funds under management.
Miton acknowledges that higher pay is mostly responsible for the 17% increase in administrative expenses during this period. But despite the higher pay, we can still see the benefit of operational leverage. Miton's adjusted PBT increases by more than 50%:
5ba8cd74c4822MGR_20180924.PNG
My view - I maintain my positive view of Miton and so do the Stocko computers. I consider the shares to be fairly priced but to offer plenty of upside if it continues to deliver
Like any fund manager, it's geared to overall equity markets. That's the main risk: a general rout in equities, or a long-lasting bear market, could dull the enthusiasm of clients.But the same is true for any manager.
5ba8cf7308a0bMGR_20180924_SR.PNG
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14/7/2018
15:11 | whiteadder: A decisive breakout this week.The company is clearly in a strong growth phase and is set for further share price appreciation going forward.
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19/3/2018
17:37 | jimmywilson612: Still think the share offers good value.
£77M Market Cap
circa £20M in Cash
Circa £6M Profit.
Share price in last 12 months - sideways.
However, looking a bit deeper, I think the business has been very generous with shareholders in the past year.
Dividend cover is 2.34. The dividend of 1.4p is costing the business £2.1M, but they have also bought & cancelled £6M of shares this year, which would roughly equate to 4.2p per shareholder. The combined total of dividend & share cancel is therefore roughly 5.6p a share (so 10% growth for the shareholder). Net cash has only marginally dropped from £21.3M to £19.9M as a result of this.
To conclude, whilst the share price has gone sideways the past year, this might not give a full account of the business and hopefully they will continue with the buying back & cancelling shares at this range whilst the business is cash positive.
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19/3/2018
07:16 | glawsiain: Results out; look very good and just ahead of (upgraded) broker estimates.
At start of 2017 Stuart Duncan estimated year end AUM at £2.9bn. He later upgraded (in dec 2017) to £3.7bn.
Final figure was £3.8bn
hTtps://uk.advfn.com/stock-market/london/miton-group-MGR/share-news/Miton-Group-Plc-Final-Results/76973084
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18/1/2017
20:22 | thaiger: Very positive trading yesterday......yet share price only moved up slightly.......happy holder!
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12/4/2016
17:51 | dlku: topvest 27 Nov'14 - 12:50 - 21 of 83 0 0
Well things have gone downhill fast in 2014 for Miton. Such a shame as they were doing so well in 2012 and 2013. They seem to have had two problems;
- the Founder of PSigma leaving and funds being withdrawn.
- Martin Gray going and then losing significant special situations funds.
Not the clearest of announcements, but working the maths FUM are now £2bn versus £2.6bn at 30 June and £3bn at the start of the year.
Hopefully, their remaining strategies and investment trusts are more secure.
Looking to top-up here now as I do rate Miton as a good small company manager.
Will not attempt to catch a falling knife though and so will await a bit of flattening-off in the share price
deja vu
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30/3/2016
19:58 | thaiger: Surprised no posts since the result announcement which was better than expectation........hence share price up considerably!
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20/10/2015
21:40 | the millipede: "In turn, might this make the marketing of Miton's income funds more difficult ?"
I think there are two potential approaches here.
The first is that MITON, as well as other large investors, could impress on small dividend payers that there are likely consequences of cutting dividend payouts. As an example, Falkland Island Holdings cut its dividend and the share price dropped around 25%. Directors might prefer to keep their dividends with increased tax than see their company share price decimated?
The second, if the alternative is share buy backs, is to educate investors that buy backs have ALWAYS been better value for income investors, precisely because of the tax treatment of dividends. (No need to take my word for it..... Warren Buffet has made exactly that point.)
BWDIK.
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27/11/2014
12:50 | topvest: Well things have gone downhill fast in 2014 for Miton. Such a shame as they were doing so well in 2012 and 2013. They seem to have had two problems;
- the Founder of PSigma leaving and funds being withdrawn.
- Martin Gray going and then losing significant special situations funds.
Not the clearest of announcements, but working the maths FUM are now £2bn versus £2.6bn at 30 June and £3bn at the start of the year.
Hopefully, their remaining strategies and investment trusts are more secure.
Looking to top-up here now as I do rate Miton as a good small company manager.
Will not attempt to catch a falling knife though and so will await a bit of flattening-off in the share price.
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02/7/2013
19:52 | topvest: Yes, very impressed with this. Miton Group are starting the get some momentum in their business. I'm not sure this is recognised in the share price at present. This asset manager has the capacity to grow AUM to the £10bn mark over the next 5 years or so. If successful, the equity returns are big from here!
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PLUS1
