Quayle Munro Share Discussion Threads

[stevie blunder] 12/8/2013 16:05

I guess they thought that it was the best they could do
If you have no viable exit as a major shareholder you have to go with the management or try to replace them

Anyway big volume buys today just a few days before delisting!
Somebody sees a bargain perhaps

[joan of arc] 01/8/2013 12:47

No, Stevie, I'll still be here. I think the new C class shares have got themselves a very good deal given that they will not only get a substantial performance reward but also a good chunk of the existing assets for an undisclosed purchase price. Now why was that not declared in the prospectus?
I wonder why Ian Jones and co were so passive about the way the cake was divided up.

[stevie blunder] 01/8/2013 11:20

54% rise in q2 sales selling fro 50 sites by year end

I am going to keep this thread going talking to myself if necessary :)

[stevie blunder] 14/7/2013 09:17

Former Abramovich adviser joins Quayle Munro
Ben Harrington
12 Jul 2013
Simon Gluckstein, one of the bankers who advised Russian billionaire Roman Abramovich on his acquisition of Chelsea Football Club, has joined boutique investment bank Quayle Munro.

The rest is behind a pay wall.
They seem serious about building the business.

:

One of Christopher Kemball's old buddies from Hawkpoint.

[joan of arc] 12/7/2013 11:47

All in all I think PI is being had. The justification for delisitng I see as just a smokescreen. They know that most PIs can't afford to be tied to a private company with little chance of getting out a 'fair' price afterwards. We are in effect being offered the value of the cash and a big discounted amount for Morrison in the price of 563p. The net asset value must be north of 700p by now, let alone the value attributable to the advisory side.

I remember thinking at the time of the last results that I was not sure of the motives of the new management, but they are clearer now and I am definitely not convinced that their primary interest lies with the'old guard'.

If you stay in there will be some protection thanks to the original owners holdings, eg Ian Jones. I for one think the new boys are getting too big a slice of the cake and will vote against the package.

[makinbuks] 12/7/2013 10:44

I just wonder if they tried to exit Morris and couldn't find a way to realise the value they wanted and so did the refinancing and then went for the delisting which they were planning anyway. There's a real lack on transparency here. i only own 265 shares so its not a big deal, just irritating

[makinbuks] 12/7/2013 10:41

Shocked and disappointed. OK I agree that with the direction the company has been headed in the last couple of years a partnership structure for the management struck me as more appropriate than a corporate one and the public listing seemed to have little point. However, the time to have made the transition would be when the investment side, or at least Morris, was realised. The take out price completely undervalues Morris and therefore one is forced to hold unquoted paper to get your money.

[stevie blunder] 12/7/2013 10:04

Delisting and also leaving Crest. back to certificates! Well that's a shock to the system.

I am minded to keep them since I am mainly holding them now for the value of Morris and that is being emphasised and protected in the re-organisation.

A lot to ponder though. I would attend the meeting but will not be in the country in early August. There was no hint of this at the meeting in March.

[joan of arc] 01/7/2013 16:54

Ditto, just over 19 years in my case.

[stevie blunder] 01/7/2013 16:38

Lol!
I have no great insights, just commenting on stuff I read
I do expect Morris to be worth more than the current share price eventually
Hope to see a flotation in the next couple of years
I am a patient holder . 20 years so far
I would be a rich man if all my holdings had done as well ....

[joan of arc] 28/6/2013 15:33

Whoops, I gave you credit where it wasn't due - I just spotted the RNS!

[joan of arc] 28/6/2013 15:31

Well spotted, Stevie. I think you are having a conversation with yourself on this thread. I agree, Morris is the cherry on the cake. I have held this share for years and it is still the best performer ever in my protfolio.

[stevie blunder] 28/6/2013 14:40

Morris refinancing announced. Short on details like interest rates, but contains as aside about the implied equity value of Morris:

"Morris, in which Quayle Munro is a 23% shareholder, has today completed a refinancing of its existing debt facilities with a GBP185m loan provided by affiliates of GSO Capital Partners LP. As part of this refinancing, Morris has bought back a minority stake in the Group at a price which would imply an equity value for the whole of Morris of approximately GBP48m. However, it is likely that Quayle Munro's investment in Morris will continue to be accounted for using a discount to net tangible assets."

48 x 23% + 4.2 loan notes = 15.2 million against current carrying value of 9.7

All positive.

[stevie blunder] 31/3/2013 19:24

With regards to the investment side, in fact that was emphasised as becoming more important. They have identified 8.5 million available for investment in companies they are advising (page 14) They are also starting a Friends and Family facility allowing very rich individuals to co-invest alongside QYM. This would eventually lead to some revenue in management fees.They have had some interest, but still early days. Investing in private companies locks them in as advisory clients when they come to exit.

I spoke to Andrew Adams, who joined with Van Tulliken, he made the point that he had accepted QYM shares at 1400p for his company, and it was now up to him to get the share price up and get his money back!

Each to his/her own, but I am happy investing alongside these folks. :-0

Edit : in answer to your question, I guess that is what Kemball thinks is needed to retain the talent. With his background at Hawkpoint he should know what he is talking about. Apparently a lot of the major shareholders support Kemball's plan. There will be a circular on the proposals later in the year with the new arrangements taking effect in the new financial year if approved.

[joan of arc] 30/3/2013 22:09

Stevie, what's your take on this from the presentation :

"Advisory pre‐bonus and pre-tax profits split 60:40 between employees and shareholders"?

I get the impression that thay intend to pull out of the investment side (which is a bit of a rag bag these days) and switch over to pure consultancy. In the process they will ditch the existing PIs over a period of a couple of years.

Frankly I smell a rat. As employees why the hell should they be entitled to 60% of the gravy (plus whatever else they will have syphoned off as 'costs').

[stevie blunder] 26/3/2013 08:44

The employee share scheme is unlike anything I have seen before.
On the plus side they have to put up their own cash to buy shares, but they are basically being given/earning preemption rights. Preemption rights are a British thing and don't exist in America AFAIAA.
If that is what it takes to get and hold onto the talent, the I am prepared to go along with it.
Of course they only make money if the share price rises, and with their own money at risk they should be motivated.
On the subject of Morris, I think it is looking better and better. Although there is little in the presentation about them, the recently announced expansion of sites and the comment at the presentation about the interest rate swaps expiring makes me think that they will float or be sold in the next 18 months -2 years. I think the price will be well above the current valuation.
You could you e-mail or better phone Christopher Kemball. He is very approachable and seriously wants shareholder feedback, since the employee package needs to pass a shareholder vote.

[makinbuks] 25/3/2013 11:18

Just read the presentation. Not sure about the new employee share scheme. Are existing shareholders to be diluted by up to 30%? I've completely lost track now of who owns the shares but with the Edinburgh side gone I would have thought there would be a number of holders interested in cashing in. I appreciate it is important to align shareholder and employee interests but the business doesn't need new capital at the moment as it has a surplus of cash waiting for a home. On the other hand getting market rates for a loan to emplolyees is probably better than what we're doing with it currently. The holding in Morris now looks even more of an anomally in the new philosophy and there is absolutely no comment on it in the presentation. As others have said, the plans on the advisory side sound fine but execution is something else. The deirectors have tried to diversify the base before by hiring a debt financing team and the Boathouse and US acquisitions themselves

[stevie blunder] 22/3/2013 10:23

Presentation now on the website:

[stevie blunder] 19/3/2013 20:38

Hi Joan,
yes growth in the advisory side may be slower than we would like, and there can be no promises.

On the other hand, Christopher Kembell has done it before at Hawkpoint where he grew the business substantially, and he has put his money where his mouth is with a million of his own money.

Also I think there is upside on the NAV side with Morris, and even the recent buys MLex and Duvet and Pillow Warehouse which are growing well according to management.

Back to sleep till the finals then ;-)

[joan of arc] 19/3/2013 19:33

Thanks Stevie for the synopsis. I think the advisory side could take quite a while and may not fly that well. There's not a lot of business out there and let's face it the advisory side has been running for years and has still not reached critical mass.

I have been a very long term holder of QYM and been very handsomely repaid for so doing but at the moment I still feel they are rather stuck in the mud. Hopefully their enthusiasm will be matched by results. I am still holding but not wholly convinced.

[stevie blunder] 19/3/2013 18:06

I was pretty impressed by the Management team at the meeting today. The presentation should be on the website soon.
The main points I took away are:
They realise communications with shareholders have not been the best and promise to improve, hence these meetings.
The remuneration policy has to change and new proposals will be forthcoming for shareholder approval.
The current advisory business is too narrowly focused and they need to recruit talent to expand into other segments. Head hunters have been hired.
It will take time for the new hires to improve the bottom line
The dividend is safe, baring a catastrophe, and will be raised as the advisory side raises its profits

The management of Morris are very bullish, and financial results should improve as interest rate swaps unwind soon.

In general they are determined to grow the business, not least Andrew Adams who accepted shares in QYM for his old company at much higher prices.

I am not selling any time soon.

[britishb] 14/3/2013 22:41

Dumped mine today for a tiny profit. All totally uninspiring IMV.

[stevie blunder] 14/3/2013 16:37

Yes that is a bit worrying, although they did raise the carrying value, so QYM can't be that worried.

The only positive spin I could put on the Morris news would be that perhaps they have fewer sites open? That would help them reduce the debt which may be a priority. I don't know. I may try to get an answer next week.

AMG have another big investor, Strathdon Investments trying to exit, something might happen there soon ( but I thought that last year)

Vascular Flow is a disappointment, but might come good.

They do seem to be going for growth on the advisory side, and want to invest the cash pile. How that all works out remains to be seen, I would love some more Kath Kidson type investments! 50k to 2 million if memory serves.

So we will have a Venture Cap type fund with a dividend from the advisory work, and hopefully an occasional special dividend when one of the investments crystalises. Not a bad story, just needs executing ;-)

Shares seem to be up today, but that is wrong, the real spread is 600-650 if you try to deal.

[makinbuks] 14/3/2013 15:26

Looking forward to your views on the Edinburgh meeting Stevie, I liked the tone of todays announcement in terms of the advisory and investment business going forward but thought the Morris bit was downbeat. Why have their sales and margins retreated when all the others are booming?