R&q Insurance Share Discussion Threads

[jonwig] 19/8/2020 08:30

Breezer - yes, that makes sense!

Every day’s a school day.

[breezer_42] 19/8/2020 08:29

They're usually subject to NDAs, which whilst frustrating is not something management have any control over.

[lord gnome] 19/8/2020 08:16

You are spot on jonwig. I have just checked back through recent announcements and no numbers are ever given. For some strange reason that had passed me by and I had mistakenly thought that basic outlines were provided detailing price paid and assets transferred. Every day's a school day.

[jonwig] 19/8/2020 08:01

Ha - do they ever give numbers?

[lord gnome] 19/8/2020 07:48

Disappointing absence of any numbers attached to this latest deal.

[jonwig] 19/8/2020 07:18

Another legacy deal, and

"we are pleased to report that we have a healthy pipeline of opportunities and a number of further transactions which are nearing completion. We therefore look forward to announcing further legacy transactions over the course of the next few weeks."

[red ninja] 17/8/2020 11:43

Mmm they are talking about recurring revenues on these deals so the more they clock up it should really start to add to the bottom line.

It has been said that one day program management may become the main revenue earner surpassing legacy runoff.

There have been some big buys to day 144,149 and 151,089 so someone with deep pockets is liking the story.

[harleymaxwell] 17/8/2020 09:58

I guess one of the main points is that the insurance market is turning positive ie rates increasing so R+Q will benefit from that ...

[red ninja] 17/8/2020 09:35

Yes, it's great to see, they have been predicting rapid growth in Program Management and they are living up to that prediction.

It would be nice to see some share price growth of the back of good new like this.

[this_is_me] 17/8/2020 07:38

The programme management has really taken off and looks like it is also becoming a real profit driver as it builds scale.

[jonwig] 17/8/2020 07:18

Program Management update:



Growing like mad, but will it be profitable over the full year? In June they hinted yes:

Program Management is highly scalable, and with its current scale largely absorbing its fixed overhead (on both an Economic and IFRS basis), we expect a large portion of our future Commissions from new business to show up as profit in 2020 and beyond.

[chuckol] 10/8/2020 14:48

Can jonwig not speak for himself?

[red ninja] 10/8/2020 13:39

Reading the RNS I think it made it clear that there was not really a capital gain from the merger, but the advantage to RQIH holders was gaining a share in what appears a fast growing business ie

"In the year to 31 December 2019 Tradesman generated earnings before interest, tax depreciation and amortisation of $8.06m, an increase of 99% from 2018."

I don't think Jonwig has done anything other than draw this to the boards attention.

[brummieloser] 10/8/2020 11:29

As ever jonwig didn't do his homework before ramping. I'm grateful to petomi for doing proper research and he is very knowledgeable in any case.

[petomi] 10/8/2020 10:55

Agreed it reads like a good deal but although they paid only $25m for Sandell they valued the net assets at £40m sterling in the 2019 accounts (see note 29) and took the bargain purchase gain to income that year. So very roughly the deal only supports the book value they have already recognised - indeed may be less depending what they have extracted from Sandell since acquisition.

Not being negative since it appears there are good commercial benefits to the deal as they outline.

Not an easy company to understand but LT returns have been good and the year end presentation explains why they can be considered undervalued agaisnt peer group metrics.

hxxp://www.rqih.com/investors/shareholder-information/investor-presentations/

As RN says price has been dull for a while. I wondered if they should have a new repurchase program (last was very modest less than £2m) but I expect they think they can deploy capital more efficiently in growing the business
GLA

[red ninja] 10/8/2020 10:38

It does, but the market has no reaction.

No buys or sells and the price has flat lined for a few weeks.

[jonwig] 10/8/2020 07:14

This looks a pretty good deal -

[red ninja] 18/7/2020 10:05

HL sent me a message yesterday that bonus shares would be added yesterday. Still not added though. I guess they'll be in on Monday.

[jonwig] 17/7/2020 12:58

Yes they're credited in my ii acc.

[alter ego] 17/7/2020 12:20

still waiting for my bonus shares to appear in my HL account. Anyone else got theirs?

[red ninja] 14/7/2020 09:18

I agree no difference in underlying value of holding.

However, I also expect to see a mark down tomorrow and selling pressure as people sell the new shares for income.

[breezer_42] 14/7/2020 09:13

The bonus shares don't have any impact on the value of the business or your holding. What the issue does is effectively take some of the capital value of the business and make it count as income. This allows institutional income investors, whose mandates often prevent them from selling shares to create distributable income, to sell these new shares (which count as income because they've been given out by the company) and distribute the cash to their investors.

As such we may see some selling pressure in the coming days, but I doubt it'll be people exiting positions.

[red ninja] 14/7/2020 08:19

So the bonus shares trade ex-entitlement tomorrow :-

"Randall & Quilter Investment Holdings Ltd. (AIM:RQIH), ("the Company"), the global program underwriting management and legacy acquisitions specialist, confirms that the date on which the Company's Bonus Shares, as proposed in the Company's Notice of Annual General Meeting published on 15 June 2020, will commence trading ex-entitlement will be 15 July 2020."

[speedsgh] 09/7/2020 12:43

Ken Randall Announces Retirement Date -

The Board of Directors of Randall & Quilter Investment Holdings Ltd. (AIM:RQIH), today announces that Ken Randall, Executive Chairman of the Company and co-founder of R&Q, has notified the Board of his intention to retire as Executive Chairman and step down as a Director of the Company with effect from 31 March 2021...

... Ken Randall, Executive Chairman, said: "Today, the opportunities for R&Q are arguably the greatest since I founded the business with Alan nearly 30 years ago as the significant secular growth in our two core markets, legacy and program management, continues to accelerate. In addition, the strength of the management team we have built gives me great confidence in our ability to capitalise on these opportunities...