Osb Share Discussion Threads

[dlku] 06/8/2015 08:36

OSB a lowly 2016 P/E of 8.2.

[dlku] 06/8/2015 08:23

George Osborne’s new tax surcharge will amount to 8% of profits and will affect 150 lenders around the country. Designed to replace the bank levy, which is paid by only 30 lenders, the tax surcharge will see the corporate tax rate of all banks jump to 28% next year, falling to 26% by 2020.

It’s pretty clear that this tax hike will hit the growth rate of the challenger banks. Although, according to my figures, being forced to pay an extra 8% corporate tax surcharge will hardly cripple the industry.

For example, for full-year 2014 OneSavings reported a pre-tax profit of £61.7m and an after-tax profit of £51.5m. Based on these numbers the company paid tax of £10.2m, a tax rate of 16.5%. Paying a corporate tax rate of 28%, including the bank surcharge would cost the group an additional £7.2m per annum, or approximately 3p per share.

City analysts were expecting OneSavings to report earnings per share of 37.2p for 2016. After factoring in the extra tax paid this figure falls to 34.2p. On this basis, the company is trading at a lowly 2016 P/E of 8.2.

Based on these figures then, a higher tax rate is not going to slow down the growth of the challenger banks.

Rapid growth
City analysts have yet to adjust growth figures to factor in the higher rate of corporate tax. So, we’ll have to wait and see how the tax surcharge affects analysts’ growth projections for these challenger banks.

But at present, Aldermore’s earnings are expected to expand by 49% this year. Virgin Money’s earnings are set to grow 6% this year and a further 52% during 2016. Shawbrook’s earnings are set to double by the end of 2016 and OneSavings is expected to report earnings growth of around 30% by 2016, that’s including the additional tax adjustment.

[future financier] 04/8/2015 09:32

You are 3 months late - already there!!!

[dlku] 20/7/2015 11:41

News Economics
Good news for landlords: Rents are rising faster than house prices


by Emma Haslett

17 July 2015 10:05am

Landlords have been hit by measures included in the Summer Budget (Source: Getty)

All right, so landlords might have been hit by the Chancellor's new rules on mortgage tax relief - but rents might just help to make up for that, after they rocketed 5.6 per cent in the year to June - the fastest rise since 2005

That's according to a report by estate agents Reeds Rains and Your Move, which suggested rents are now rising faster than house prices on an annual basis for the first time since July 2013.

Monthly rents hit £789 in June, the figures showed, 1.4 per cent higher than the £778 recorded in May - despite inflation falling to zero per cent in June.

Surprisingly, London isn't the place where rents are rising most - that crown goes to the East of England, where prices rose 13.8 per cent in the year to June, the 15th month of consecutive rises.

The capital came second, with average rents of £1,241 and a 9.6 per cent annual increase, with the South East coming a "distant" third, with rises of 2.2 per cent to £778.

But yields remained steady at 5.1 per cent in June, unmoved from the same time last year. Meanwhile, annual returns fell to 9.2 per cent in the year, down from 9.3 per cent in May - and 11.9 per cent in the year to the end of June last year.

However, Adrian Gill, director of Reeds Rains and Your Move, called yields "resilient".
“Resilient yields backed up by rapid rent rises are a boon for landlords in otherwise trying times. Though the Summer Budget threatens to eat into their profits, record rents should provide buy-to-let investors with some comfort: the fundamentals still make being a landlord an attractive proposal.

“The fact that rents have risen faster than house prices should reinforce that the primary source of a buy-to-let investor’s income is rent rather than capital gains – house price growth is a welcome bonus, but not the be-all and end-all of rental property investment. Meanwhile, with mortgage rates so low, there’s rarely been a better time to invest in new property.”

[dlku] 20/7/2015 11:40

bought a few

[albanyvillas] 13/7/2015 08:49

nice 250k buy


Recomm.
9 Jul Canaccord... Buy
7 Jul Investec N/A Buy
26 Jun Investec 365.00 Buy

[gargleblaster] 08/7/2015 21:43

This was the other budget reason that OSB was down today - not just the buy-to-let aspect - a double whammy!

The change is likely to hit challenger banks especially hard, as they will have to pay the surcharge on pre-tax profits above £25m.

[billy ray] 08/7/2015 17:47

Nice riposte (RNS) from the company:



ONESAVINGS BANK PLC - OSB


Further re Buy to Let changes in today's Budget Statement

Released 17:30 08-Jul-2015






OneSavings Bank comments on Buy to Let changes in today's Budget Statement

OneSavings Bank notes the statements in today's budget announcement regarding Mortgage Interest Rate relief for individual landlords. Whilst the full details are yet to be finalised OSB would like to highlight the following

•OneSavings Bank specialises in, and targets, the professional landlord segment of the private rented sector. Many professional landlords run their businesses through limited companies or utilise tax efficient re-investment strategies to manage their affairs.




•Landlords who have chosen to borrow in their own name have until 2017 to plan any changes to their portfolios; furthermore the tax changes will be gradually implemented over a four year period, allowing further time to manage any impacts.




•OSB believes that the private rented sector requires specialist knowledge and if the changes act as a deterrent to amateur or inexperienced landlords entering the market going forward, then this will likely benefit the broader private rented sector in the longer term.



Commenting on today's announcement, Andy Golding Group CEO at OSB said. "The sheer demand and demographic growth prospects for private rented property are likely to keep the market growing despite these small changes to the tax regime."

[technofiend] 08/7/2015 14:45

Above average hit to the share price from this afternoon's budget.

Almost 10% Seems like an over-reaction.

[gargleblaster] 28/6/2015 10:24

Investec have initiated covergae with a buy reccomendation and a target price of 365p.

[gargleblaster] 26/6/2015 14:24

Splendid!!

[gargleblaster] 24/6/2015 04:01

monty - as above sales were to quench institutional demand!

[montyhedge] 23/6/2015 19:05

If everything so great, why are they selling, why don't they hold them and make more money.
Always follow the directors they know more than you.

[gargleblaster] 22/6/2015 16:32

Hopefully the director sales are in the rear view mirror now - in any case they "supposedly" resulted from institutional demand. Once the market gets back to fundamentals, this is really cheap - fwd PE of 9.1 and rolling peg of 0.49 with a forecast div yield of 2.54%, and operating in markets that conventional banks are not involved in, so little competition. So all bodes well imv!

[mikeja] 22/6/2015 15:06

These director sales giving a good opportunity to buy back my earlier sales at a small profit.TheShares magazine estimate points to eps of about 33p for 2015 and
37p for 2016. These still have the capacity to double again.

[gargleblaster] 18/6/2015 03:56

Shrs mag remain positive on OSB following the lock up share disposal by directors, which has hit the sp!!

OneSavings withdrawal

Sale follows end of lock in period – investment case remains strong

The sale of more than £7.5 million worth of shares in OneSavings Bank (OSB:AIM) by two directors is not a sign that the company is in trouble.

Chief executive Andy Golding was joined by finance director April Talintyre in selling around 2.5 million shares (10 Jun).

The sale follows the end of the lock-in period following the bank’s initial public offering (IPO) 12 months ago. This is where management and other large shareholders agree not to sell their shares in the business until a certain date.

Directors' deals - OneSavings Bank - 18 June 2015

Golding and Talintyre sold their shares following a 35.1% climb in the stock since it listed.

Helping the Kent-based specialist lender to drive such gains was the 132% jump in pre-tax profits to £69.7 million in 2014 and an impressive 31% return on equity (RoE). More of the same is expected with pre-tax profits forecast to grow 44.3% to £100 million this year and by 14.3% to £114.3 million in 2016.

The lender, mainly funded by retail deposits, is well insulated against an economic decline because it holds 11.4% of its £3.9 billion loan book in reserve.
THE TRADE

Seller: Andy Golding, chief executive officer

Consideration: £5.4 million

No. of shares sold: 1,823,522

Subsequent holding: 2,250,540 (0.9%)

Ignore the director disposals; OneSavings’ profits and return on equity are expected to remain strong.

BROKER CONSENSUS
HoldBuy15
Consensus Value
Sell 0
Hold 1
Buy 5
Not Available 0


Issue Date: 18 Jun 2015

[technofiend] 10/6/2015 08:56

CEO and CFO selling a major amount of shares.

[melf] 03/6/2015 22:38

Opens OK on my ipad Nurdin.

[nurdin] 03/6/2015 21:00

Cant open that link Mellf

[melf] 03/6/2015 20:05

FTSE 250 confirmation

[gargleblaster] 02/6/2015 21:57

FF - yes according to stockchallenge.com, as at last Friday OSB was in position 322 with the automatic cut off at 325. Since then I think it has retained its position (a couple of companies have moved above it and a couple below) - so should join the FTSE 250.