Quayle Munro Share Discussion Threads

[stevie blunder] 20/1/2006 14:39

Small mention in Scotsman:

Elsewhere, shares in Edinburgh-based corporate finance business Quayle Munro, which advises housebuilders and PFI participants, have leapt recently as a result of investment gains and could provide new investors with local interest.

[stevie blunder] 06/1/2006 14:53

Yep. Worth noting perhaps that Persimmon is now on a p/e of 9, and most builders are on 7-8. Morris may be more risky because of the debt, but it leaves some good upside. I'm not expecting anything until the interims in early March, when there should be a trading update for Morris, (and, if they do the same a last year, a profit projection,) and hopefully, an announcement that clinical trials have started at Tayside.

[makingheaps] 06/1/2006 14:22

All possible mercenary, certainly PFI still has funds to invest and there is a lot of cash burning a hole in QYM's pocket. Could also just be sentiment over the housing market and the prospects for Morris. Perhaps the most obvious answer is just the lack of shares available. As I said on post 133 the directors do not buy in the open market and any volume of buying makes the MM push the price higher.

[mercenary] 05/1/2006 19:29

yo! Making Heaps...along with yesterdays rises and todays ... yes maybe an
announcement...regarding PFI InFra..???? i wouldn't be surprised at all...
maybe a special divi.????????????

[makingheaps] 05/1/2006 13:55

Interesting 6% rise today. Looks like three 500 share buys went through but only after the mark up. Maybe a trading statement coming?

[makingheaps] 19/12/2005 19:55

Indeed, this is why the directors recently deal on a matched bargain sort of basis. Don't follow the MF board but will have a look - always interested to read your views

[makingheaps] 19/12/2005 16:22

Interesting share price movement today. No trades at all recorded yet a 22.5p rise or 2.3%. Something positive expected

[makingheaps] 05/12/2005 20:26

House prices on the move upwards again (don't believe that myself) and builders being re-rated on the basis of industry consolidation. All augers well for Morris and therefore QYM. Imagine if the p/e applied to Morris were to double while its profits stood still from last year.

Plus PFI has now risen to £1.80 compared to their £1m investment at £1.40. Not to mention the rise in fee income.

And these are boom times for corporate finance generally.

Hard to see any negatives at the moment. Just waiting for the impetus for another rise.

[makingheaps] 14/11/2005 16:17

Spread seems to have reverted to 50p. Price has suddenly started moving around for no apparent reason. Today for example we have one modest sale but the price rises 27.5p. Could be that news of something is imminent ? Or maybe positive reaction to the Persimmon bid.

[stevie blunder] 05/11/2005 09:36

Attended the AGM yesterday. A few snippets:

Recovery in AMG order book is happening.

Tayside clinical trials on 40 patients start January.

very reassuring about Morris, without giving any specifics.

QYM does, at present, qualify as a holding for IHT relief, PFI does not, as it is an investment vehicle.

steve

[mw8156] 16/10/2005 13:40

Equity Devs report is poor; the outlook for QYM depends on the future of Morris and what it does with its cash rather than the divis paid in the last few years.

[makingheaps] 14/10/2005 14:55

SB, Agree Equity Dev methodology is flawed as special dividends by their nature are just that and you cannot therefore base the future on one off events from the past. Good point about the AIM anniversary there may be a few people thinking likewise so we may see some short term weakness. I think the market makers have plenty of appetite to take them though as they are so tightly held. Personally I will continue to hold as I already lightened my exposure at £6.50 whhich was of course a mistake but then its never a profit until you sell as they say. Have a good holiday

[stevie blunder] 10/10/2005 14:53

Hi Makingheaps, just looked over the Equity Dev report from the link on the QYM website. Fair value 1284p. Thanks for pointing it out. Not too keen on their methodology, but nice to see a high figure!

I am coming up to the 2 year aniversary of holding these on AIM, after transfering them from the PEP, so they will be fully tapered. I must admit it is tempting to lighten up a bit as they are by far the largest holding and the biggest gain in the portfolio. Will think it over on holiday next week.

[makingheaps] 10/10/2005 13:51

PFI Plc rated a buy in Fridays IC. Apparently Collins Stewart expects NAV to be £1.90. Shares up 2.5p today to 1.63. At some point this must turn the spotlight on QYM.

[makingheaps] 06/10/2005 19:35

Nice to hold QYM this week as everything around collapses!

[makingheaps] 30/9/2005 18:33

Positive reaction to the Pfi final results. We will now be more than 10% ahead on our £1m investment plus a 5% divi! Good news also that the fund is now finding some investments and making announcements.

For what its worth I read that Equity Research increased their valuation of QYM to over £12.

[makingheaps] 19/9/2005 16:37

Your point on tax is well made. I agree its better for them to re-invest, I just hope they do it wisely. As I've said before their trach record in investing isn't great with the exception of housebuilding. (and PFI I suppose)

Interesting the quoted spread has reduced today to 25p compared to 50p that has become the norm. Does this represent an attempt by the market makers to shake out some sellers?

[stevie blunder] 17/9/2005 13:24

Skanska Quayle Munro? Dunno. Sounds like a question for the Agm.

their deal with PFI gives PFI first refusal on any new projects, so watch for an RNS there. Strange that a 70 million contract generated no comment from PFI or qym though. May ask at the agm too.

they value Morris at 12.5 million, including 4.7 million loan notes, ( I asked at the agm last year) so 25% equity = 7.8, or Morris is valued at 31 million. for a pe of around 2. Still looks ok to me, but with profits stagnating, there may not be much upside short term like you say.

Bit puzzled by the lack of a special divi too, they may not like landing their shareholders, ie themselves, with a high tax bill. The deferred taxation entry in the balance sheet is very small at 337k, and I think the tax treatment of their capital gains is very favourable, they paid 550k on group profits of 2656k, so if they can re-invest it is better to. A director once tried to explain to me why they pay so little tax on capital gains, but i didn't quite understand it...... doh.

looks like a fairly boring year ahead, with Morris profits stagnating and the Tayside trials delayed. Oh well, held them for 12 years and so far so good.

steve

[makingheaps] 15/9/2005 15:23

What is Skanska Quayle Munro? I thought they had stopped investing in these projects directly and now invested funds on behalf of PFI Infrastructure Plc as manager of that fund??

Results pretty much as expected. Morris still conservatively valued at £50m but can't see that changing too much while there is uncertainty in the housing market. Positive news on Submersible and Tayflow but the new investment sounds iffy. This is all small beer.

What about the cash!! Can't believe no comment with a balance of £10.4m! This is £2.76 per share. They seem unwilling to follow the previous policy of distributing balances which is OK providing they have a good plan for it. I do think that they should be a bit more forthcoming on this.

[stevie blunder] 08/9/2005 20:55

Results thurs 15t sept.

Still chasing PFI investment:




EDUCATION chiefs in Midlothian are set to go ahead with a £70 million plan to build eight new schools through a controversial public private partnership (PPP) scheme.

Skanska Quayle Munro (SQM) was today awarded the contract to design, build and finance the schools in the multi-million pound deal after beating off competition from another bidder, HBG.

[makingheaps] 02/9/2005 13:05

Of course its still good news that Morris hit their forecasts for the year

[makingheaps] 30/8/2005 17:20

Yes, if it seems too good to be true it probably is. The dividend from Morris to Hallco will be to allow them to make the interst payment on the loan. I'm still a bit confused however that if Morris isn't the ultimate parent why is it publishing a group balance sheet as well as the company one? Surely the consolidated group accounts would appear alongside those of Hallco? I admit I haven't read any of these accounts just responding to the comments here.

[stevie blunder] 25/8/2005 09:52

Ah Well! Back to the drawing board!

Will have a look, thanks Forensic,

steve

[forensic] 24/8/2005 11:38

Had a look at the Morris Group Limited ("MGL") accounts. As per the directors report, on 31 March 2004 Hallco 996 Limited acquired the whole of the issued share capital of MGL as part of the refinancing. So the MGL accounts do not show the whole picture of the "new Morris Group". Hallco 996 have not yet published their accounts, so unable to get the effect of their figures, but I reckon the "missing" interest charge will be found in their accounts and that the actual "new Morris Group" Pre tax profit will be similar to the QYM forecast of £23million.

Having read the MGL accounts, I think the following will appear in the new holding company accounts (Hallco 996):

(1) Additional loans particularly the shareholders loan stock which is not mentioned in MGL.

(2) Associated interest charges.

(3) Directors remuneration (note 8 states that this borne by Hallco for the y/e 31 March 2005)

NB the final dividend of £3.5 million will be payable to Hallco 996 not QYM and the other shareholders of Hallco 996. Do not know whether Hallco 996 have declared a dividend to the external shareholders.