Quayle Munro Share Discussion Threads

[makingheaps] 04/3/2010 16:16

Thats certsinly the hope!

I guess the concentration on the bonus issue is in light of the controvesy over bankers bonuses. Interesting presentation of the P & L separating out the bonus element and emphasising what has been paid and accrued. Was that just in the interests of transparency or is there another message?

I agree about the profitability of the advisory work. Taking the bonus into account they only earned a net 4% on £5.1m of fees. I had in my mind that they could make £2m per year profit which with a pe of 5 would represent £2 - £2.50 per share of value as a business. Seems the two acquisitions have brought a lot of cost and I am particularly doubtful about the second one given that the US office has now been closed. Was that a good deal? Think I need to remind myself of some of the details

[stevie blunder] 04/3/2010 15:58

Yeah, corporate finance advice doesn't seem to be very profitable!
I really hope that changes, otherwise there will have to be goodwill write-offs.

The asset side is all very well, but to pay increasing divis needs cash coming in from the on going business.

I will be interested in the circular about the management incentive scheme, hope they don't give too much equity away, I would want to see some tough but reachable Total Return/share targets.

Anyway, they have flagged up a good second half, the PFI fund will also help, and NAV should get a boost from Cath Kidston, the remaining 1.4 million from STS and a possible revaluation of Morris.

So your purchase yesterday could look well timed later this year :-)

[makingheaps] 04/3/2010 15:00

Excluding goodwill NAV £6.12. I think it was a good call to leave Morris valuation untouched and there should be upward revisions in due course. Pleasing to hear the positive statements on the advisory side and an increase in fees of 30% is good. There seems to be a lot of cost in there though. Disappointing that there was not something more concrete on the new PFI fund but I guess it will come in time.

[makingheaps] 03/3/2010 09:51

AGR confirmed sale today of its GP business to Virgin. Not a huge transaction but I would assume another closed deal for QYM advisory.

Pretty much everything seems to be moving in the right direction again. I've bought back a small number this morning for £7.30.

[stevie blunder] 03/3/2010 08:12

Results tomorrow, Thursday.

Tayside have raised new money:



Interestingly the CEO said:

"This funding and the progress that the company is making should see us well-placed to raise further development capital during 2010, thus enabling us to bring additional products to market during 2011 and beyond."


Not quite saying the word "float", but why mention that they still need more money? if they were coming back to the same shareholders, why not just raise more now? Maybe they plan to target VCT's and other funds, like 3i once they have shown more progress.

[stevie blunder] 22/2/2010 12:10

QYM have 2.2% currently valued at just under 600k, so that would be an uplift of about 1 Million, or around 20p/share. Every little helps ;-)

[stevie blunder] 19/2/2010 15:19

News on the new PFI fund, which seems well advanced:



Quayle Munro is seeking to raise £150 million for the Quayle Munro Infrastructure Company, which will take the form of an Isle of Man incorporated investment company that is set to list on the London Stock Exchange in early to mid-March. The firm argues the pricing of infrastructure projects is becoming more attractive due to the scarcity of capital and tough banking terms which have hit the sector.

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But later in the article they say they are trying to raise 500 million, I guess that is longer term, HICL for example have regular share issues.

Listing should be around the time of the interims.

[makingheaps] 10/2/2010 14:33

Another deal for Virgin they might be involved in?

[stevie blunder] 29/1/2010 07:54

PS this looks like good news:

Morris Homes buys more sites as sales recover




(ignore the bit about being owned by 3i)

[stevie blunder] 28/1/2010 21:11

Plenty to look forward to in the interims.

They will book the profit from the STS sale, say 4.5 million, taxed of course.

Morris should have risen in value, say 2-2.5 million

There was a lot of work carried forward into the year, some of it should have reached fruition and hence payment in the half.

They promised an update with these results on their attempts to set up a new PFI fund of at least 100 million, nice fees if it comes off.

Tayside have applied for regulatory approval for their second product, an access graft for Europe and the US, expecting approval mid year.

QYM have a transactions page on the website:



Impossible to tell from this whether things are looking up or not, since hardly any transactions are valued.

But should be a decent set of financial results. I am just hoping for a maintained divi.....

[makingheaps] 11/1/2010 10:21

I see QYM acted as advisor to Virgin in the acquisition of its banking licence. Probably a small job in fee terms but clearly an area where there is going to be a lot of action to come. Presumably therefore no conflict of interest issues as pondered above.

[makingheaps] 09/11/2009 19:31

Yes not much to move it either way at the moment. Spread has reduced which may indicate more liquidity. No reaction to the departure of key directors which I think is fair enough as it's a strong all round team. Not sure though of the future of the Virgin account. Does the former MD have a conflict now that he heads Virgin and is an advisor for QYM? On the one hand you could see it as positive that there is a close relationship but on the other will he be able to place business with QYM?

[topvest] 31/10/2009 15:33

Look a hold to me. No trading profits really being generated until conditions improve.
If you take the NAV (£37m) - the intangibles (£12m) and add some upside for Morris and STSH (say £10m), it's difficult to say that c£40m isn't about fair value.

[makingheaps] 21/9/2009 18:13

I think thats a fair assessment

[joan of arc] 17/9/2009 17:21

My sentiments MH. I have held this share for nigh on 15 yrs and it has earned me a compounded 20%/yr so they have overall performed very well. Right now my holding is minimal. The current prospects and the ridiculous spread make this not a very interesting propostion.
However I will contnue to hold as they have always been a professional, if conservative, company and they have demonsrated that too rare a characterisitc for an AIM company - totally integrity to the PI.

[makingheaps] 17/9/2009 16:33

Contrast the rating with AMBR which trades at around NAV and intangibles are negligible and cash exceeds NAV. Their trading business is bouyant. I don't hold either but I'm still not tempted to get back into QYM at the £8 on offer.

[makingheaps] 17/9/2009 16:25

Not a great set of results. Could argue its a low point in terms of corporate fees and value of Moriss. The notes state NAV to be £8.01 but this includes intangibles and is not fully diluted. I prefer £5.12 using £25m assets and 4,882 shares. No movement in the share price today and It could stay like that for some time.

[makingheaps] 10/9/2009 10:42

40,000 sold at £6.50. Nice business for the mm who is still offering them for sale at £8!!!!

[makingheaps] 01/9/2009 18:01

Thanks for the correction to my figures, you are quite right.

[stevie blunder] 01/9/2009 15:21

QYM only have 49.9%, plus the loan notes, so gain will only be about 6 million, or about 1.50/share. It does increase their cash tho, 8 million for the equity and 1.88 for the loan notes being repaid. There will be tax to be paid I suppose. Too late for the year end june 2009 of course.

I note they say that the proceeds will be "applied
principally to increasing Quayle Munro's liquid resources. " Principally.I wonder if that leaves open the possibility of a special divi at some point? I'm sure the sellers of New Boathouse and van Tulleken would appreciate a cash return.

Morris should be doing OK at the moment, there has been some optimistic stuff on the Morris website :

Although they are obviously talking their book.

There was also a piece in last weeks Times that showed housing starts in the midlands rising year on year.

I think the odds must have improved on them maintaining the divi when the finals are reported in Sept. Fingers crossed.

You never know what will happen to the price, there has been intermittent selling, this rise might encourage some more. And an October squall could prompt a pull back.

Steve

[makingheaps] 01/9/2009 12:06

Looks like a nice deal for Submersible. I think the equity was carried in the books at about £2m so selling for £16 gives a nice profit. About £3.50 a share? Raises the old question of what they will do with the cash pile. I would imagine things are looking up a little at Morris too. If there's an autumn setback for shares I wonder if I might get a chance to get back in around £6??? Maybe optomistic.

[makingheaps] 18/5/2009 13:09

Very impressive share price rise in the last few weeks. So far as I can see it seems to happen each time there's a tiny transaction, eg. today £800 purchase so price up 11%. It's just too iliquid to be a practical investment.

[stevie blunder] 06/4/2009 08:31

Couple of snippets:


"EDINBURGH investment bank Quayle Munro has signalled a new focus on green energy projects after being appointed to raise up to £70 million to build the Carraig Gheal Wind Farm in Argyll."

Pleased to see that, would be even more pleased if they can get an equity investment in the wind farm.

Also:



Tayside Flow
Technologies

FDA approval obtained for its spiral flow graft

ahead of US launch

I read about that over the weekend on the Tayside website, but was a bit gobsmacked to see it released as an RNS. Looks like the start of profile raising ahead of a flotation, (when market conditions are right naturally, so I won't hold my breath)

[makingheaps] 13/3/2009 13:26

Yeah could be about right