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Randall & Quilter Share Discussion Threads
Showing 526 to 546 of 550 messages
|Good set of numbers, good outlook, a divi increase on a high yield, a positive market reaction this morning, what's not to like. Very happy to hold.|
|Yes it depends on your tax position whether you want income or capital gains. Mine are in my ISA so it doesn't matter. The business model has produced lumpy cash gains. I made a lot of money here a few years ago and then sold. I bought a smaller holding last summer. It seems that they are developing another area with a more 'normal' business model which should steady the returns somewhat.|
|Very impressive results.|
|FY results - excellent, as signalled:
as indicated in the recent placing announcement, the Group traded very well in the second half of 2016 with full year profits ahead of Board expectations and significantly higher than the prior year.
This profitable trading means that proposed distributions per share have been increased for the first time since 2012 to 8.6p for the full year, a demonstration of the board's confidence in the Group's trading and prospects.
The Board has a positive outlook for the current year and was delighted with the support it received from the Group's shareholders in the recent placing to help fund our growth.
I'd expect some cash drag in H1 (to end-June) as the placing monies get utilised, and this will affect per-share earnings. H2 should show some improvement.|
|In for a few this morning. Mainly for yield, although I think this could just be the right time to buy. Back to 140 on finals if the outlook is as positive as I would hope for.|
|fenners - correct on the EPS.
Fair enough - yes if they didn't pay a dividend they could put that cash towards increased solvency to support the acquisitions - but you could say that about any company which does a placing or rights issue to pay for an acquisition and yet doesn't forego its dividend.|
|Hmm. I was going to comment on the recent weakness yesterday but no need now. Looks like it's been walked down prior to placing. A small 2.9% discount to yesterday's closing price maybe but 16% discount to the share price in Nov. Can't say I'm surprised as we've seen it so many times before, particularly on AIM.
Don't think it's necessarily material but I did note the following in the Trading Update further down the announcement:
"The process of simplifying the Group continues with interest shown by several potential purchasers of certain non-core business units. If these lead to an eventual transaction or series of transactions then the proceeds are likely to be at a significantly higher value than the current carrying value of such units which would result in a material one-off gain for the Group. The Board would stress that any such disposals are subject to significant further negotiation with no certainty they will occur at such values or at all."|
|WJ capital ratio or Tier 1 ratio its the cash which is providing the buffer; I get the argument that with a higher ratio they are able to approach different markets , however I ask if they had retained $7m of cash would they need to raise the equity?
Is that 9p full year EPS? That would be 7.5p second half and 1.5p first half?|
|Forecasts were for 9.0p and they say they're at least in line with that, so dividend is covered by earnings. NAV is also up 10%.
Capital ratios aren't cash reserves - insurers have cash coming out of their ears. It's the Tier 1 solvency requirement to allow them to increase their books of business - for the US to get them onto approved brokers lists, and in Malta to allow them to issue comparable subordinated Tier 2 notes to maintain solvency after the recent acquisitions.
Looks sensible to me.|
|So it aims to pay a dividend of 8.6p per share - based upon first half - this would not be covered by earnings and amounts to £6.2m. Says that there are more acquisition opportunities in 2017 but then gives details of $7m+ improvement in capital ratios, i.e. needs more cash reserves. Of the rest of the gross funds raised 3.5% is fees.
Shares issued at a small discount (standard) but a 20% dilution.
This looks from the outside as if they have been paying too high a dividend and overly reducing cash reserves thus having to either borrow or raise more equity.
This then looks like raising equity to pay dividends ....|
|February share price weakness explained?
... is pleased to announce that it has conditionally raised gross proceeds of up to approximately £16.9 million through a placing of new ordinary shares with certain institutional shareholders and Directors.
A total of 14,423,591 new ordinary shares in the Company have been placed by Numis Securities Limited ("Numis") at a price of 117 pence per Placing Share, raising total gross proceeds of approximately £16.9 million. The Placing Shares represent approximately 20 per cent of the issued ordinary share capital of R&Q prior to the Placing.
A detailed trading statement follows, which ought to give us a boost, one-off gains from hoped-for sale of non-core assets plus profits at least matching expectations.
Nobody asked me to take part in the placing!
|Yes, much too big.|
|When you first mentioned it I thought it was a reasonable size, but now I think it looks too large for us.|
|So r&q didn't pick up the rsa legacy business. I suppose a premium payment £750m was too high|
|RQIH have certainly been a lot more active on the news front in the past 6-12 months. Let's hope it translates into increased profits, capital returns & share price appreciation!|
|Issue of $20m USD subordinated notes:
Confirms that they expect further business expansion this year.|
|The market seems to have finally responded. I agree that the comment is significant...R&Q aren't known for their hyperbole!|
|Prescient of you, maffs, number eight:
And a more upbeat comment then usual:
"This novation caps off a fantastic year of legacy transactions for R&Q, with prospects for 2017 looking even brighter"|
|Yes, jonwig, there does seem to be a lot of business going on at the moment. Assuming they are all good deals, then this could be a transformational time for Randall. Companies simply want rid of these old insurance vehicles and I suspect there is not a lot of competition to buy them, so R&Q will hopefully be picking up some bargains.
|Another acquisition announced, that's seven in the past two months (though they aren't all called acquisitions).
This ought, in good time, impact bottom line and balance sheet.|
|Interesting. I've just looked back to the H1 stage:
Our UK Legacy portfolio comprises exposure to asbestos and other long term liabilities arising from Employers’ and Public Liability policies written over the past 50 years. The UK Legacy underwriting result for H1 2016 was a loss of £5m (H1 2015: £14m loss) primarily reflecting operating expenses incurred.
So it's actually quite a small division. A reasonable size for us to swallow.|