Quayle Munro Share Discussion Threads

[makingheaps] 11/10/2010 13:27

7% up today. Amazing what one trade of 1,000 shares will do to the value of this business. The tightness of the market and the size of the spread does nothing to encourage investors. Once you're in you've got to be in for the long term!

[makingheaps] 06/10/2010 10:29

Whatever Morris are thinking about presumably it will mean advisory fees for QYM. RBS are obviously shrinking their balance sheet wherever possible and this deal would probably be a prime candidate. Highly leveraged height of the boom deal but supported by a well run profitable asset backed business so scope to do something. Can't see that converting to shares or loan notes would help them particularly so an injection from someone else would seem favourite to me. Maybe 3i will reappear!!

[stevie blunder] 27/9/2010 20:30

I agree with you about Morris, they are not nearly as committed to them as Ian Jones once was. This quote in the results puzzled me slightly:

" The Morris Group continues to meet all banking covenants and is considering with its bankers the best financial structure with the aim of achieving further reductions in its debt."

That suggests something being contemplated on the balance sheet, maybe conversion of the loan notes to equity? that would reduce the gearing, eliminate some interest payments and make the bank's position more secure, although the loan notes will rank behind bank loans anyway. The other possibility is further injection of equity from a third party, but that would be difficult in current climate. Pity a float is out of the question at the moment....

Tayside Flow could yet be a big winner, it is in for nothing, but represents an investment of 1.75 million I believe. They keep making progress, and will be worth something if they can make it into profit.

[makingheaps] 27/9/2010 18:04

I even get the impression they would sell Morris if there was an exit route available so the transition to a pure advisory business is clear. To be honest you would then have to ask what the point of a quote was. I guess it makes trading options easier for the staff. The way I look at it is the value of the assets more or less supports the share price so I own an advisory business for nothing. Yes its risky in terms or earnings flow but over a three year rolling average they will make money. I suspect we will get more special dividends and a reasonably progressive normal payout so its a strong hold. Of course if you wait long enough and they stay in Morris the value of that could easily double in the next five years but it's likely to do nothing for the next two/three.

[stevie blunder] 19/9/2010 10:16

Those are good results, the special divi is very welcome.
Professional revenue in the second half was around 10 million. Given that they have a strong current pipeline and are talking about organic growth and more recruitment, it would be reasonable to suggest they could make 20 million fees in the current year, even allowing for some lumpiness in transactions completing.

If you value the advisory business at turnover, that would be about 450p/share. Add tangible NAV and you get a share price target of about 1200p, which is OK I think.


Having said that, the CEO said in an interview with the Scotsman :

""In the past Quayle Munro was effectively an investment trust; now we are mainly an advisory business," he said."

I think that is right, but the result is that there is more risk in the business, so I will be looking to reduce to a more normal sized holding if they achieve my target (adjusting for the special divi). Ideally we now need a bit of press coverage and a few tips!

[machiavellianindian] 22/6/2010 20:20

check donnies site out.... fooooking table and a half :-

[stevie blunder] 22/6/2010 20:18

Tayside have re-vamped their website:

[makingheaps] 07/6/2010 15:32

Thanks for that. As always your knowledge of this stock is exemplary

[stevie blunder] 04/6/2010 22:03

the full name given to the Euro China Fund is given as :

FE Special Investments Limited ,ECF Investments Limited. FE is the vehicle of Victor Chu, who bought in a couple of years ago. I think he took some of the Urberior stake. Don't know about ECF, my guess is that Victor Chu is involved tho.

The change in percentage occurs simply because QYM cancelled 280K of the share they bought in from Urberior, so the total mumber of shares in issue changed :

Victor Chu Stake : 434,843
Prior shares total : 4,583,814
New shares total: 4,303,762,
So Victor moves from just below 10% to just above. Simples !

[makingheaps] 04/6/2010 16:18

What is the Euro China Fund. How did they manage to acquire 10% of the shares without moving the price? Very curious

[stevie blunder] 14/5/2010 15:07

IJ Online (subscription)
Quayle Munro has elected not to proceed with a new, primary product PFI fund after failing to raise the minimum amount of cash following a disappointing ...


Disappointing, but the costs associated with the preparation up to Dec 2009 were written off at the interim stage.


In better news:

Tayside Flow Technologies Limited ("TFT") is pleased to announce that its ePTFE Spiral Laminar Flow AV Access Graft was awarded a CE mark on 5th of May 2010.

[makingheaps] 23/4/2010 17:50

Good spot and involved on the buyer side as well which means they could be involved again in the sell on

[stevie blunder] 23/4/2010 14:32

They advised on the DFS sale:



The closure of that deal may have triggered the trading upgrade, since they only get paid on completion. Big deal, more please :-)))

[makingheaps] 23/4/2010 13:02

Yeah nice one and I think unique for QYM certainly in my memory. I suppose the closure of these deals is very inpredictable but the previous statement in hindsight does seem unecessarily gloomy. So much so I was beginning to wonder if the two acquisitions they made had been a waste of time. Certainly there won't be a write down in goodwill now, so the reported NAV should be OK although I strip it out anyway in any assessment.

[stevie blunder] 23/4/2010 07:38

That's novel, a trading update!

Might even get a rise in the divi.


Obviously the directors who bought had no idea it was coming. ;-))

I can't find any forecasts, so I have no idea what they mean by market expectations.

Brightens up my week anyway.

[makingheaps] 16/4/2010 17:26

£6 was a pretty good price for the directors buys, the quoted offer has been £7.50 for weeks

[makingheaps] 01/4/2010 09:07

I wonder if IQ Jones would sell a few back to the company as well at £5 now that he's no longer at the helm

[makingheaps] 30/3/2010 18:28

I suppose given the bid offer spread a 3% earnings enhancing transaction is immaterial.

Nice to see Tayflow still progressing

[stevie blunder] 30/3/2010 15:14

Tayside get approval for their AV access graft:



his is another step forward for the business. We also await the outcome of our CE Mark application. We have been making progress with our SLF™ Bypass Graft over the past year and this provides us with the range of products that we need to fully penetrate the worldwide Vascular Graft market. Feedback from customers indicates that this may well be a bigger product than the Bypass Graft and that there is a clear clinical need. We are also continuing to develop our business in new markets and hope to launch in Russia, Argentina and Brazil during 2010. We're looking forward to getting more support from Scottish Enterprise and Scottish Development International to support the ongoing business development. I am extremely proud of what we have been able to achieve in the past two years with a team of less than 10 people."

[stevie blunder] 30/3/2010 09:49

Of course the rise in NAV I quoted is wrong, more like 3%, still it all helps.

[makingheaps] 30/3/2010 09:40

You worked that one out nicely Stevie! I had thought this might be a non core holding for Uberior given the banking crisis and the need for liquidity. I am surprised at the timing though and the fact that they accepted £5. With surplus cash on the balance sheet a share buy back was always on the cards but impossible due to the shares being so tightly held. This is the perfect solution. I imagine the 40k in treasury will be bought fairly quickly by staff as there is a long history of this. Excellent news, but no movement in the share price!

[stevie blunder] 30/3/2010 08:43

Ah! That explains it. Useful 6% or so rise in NAV/share.

[stevie blunder] 29/3/2010 21:53

According to ADVFN there was a trade of 435,432 shares traded at 500p. ie about 10% of the company. Reported after hours. That could be Urberior, or FE Secs, the Victor Chu vehicle. Looking at the exact holdings Urberior is more likely, they had 9.5% which is 435462, FE Secs had 9.49% which is 435004 by my calculations.

So who bought them?

[makingheaps] 08/3/2010 09:58

Completely agree, it is inconceivable that shareholders would be paid £100m, more than 3x sales and 20x profit!! I see Cath Kidson herself is expected to keep her stake so maybe QYM will not sell out? Good news again for the advisory business and nice publicity. It was front page of the Sunday Times business section and a couple of column inches again this morning

[stevie blunder] 07/3/2010 10:39

Cath Kidston goes for 100 million:




That may be an enterprise value, ie including some debt, but is a good result. The initial cost to QYM was 50K.