Uk Mortgages Share Discussion Threads

[rambutan2] 20/11/2020 22:21

I'm happy with that: Christopher Waldron, Chairman of UKML, said: "Following the launch of the review of strategy, the Board has consulted with the Company's Shareholders over the appropriate future direction for the business. I am pleased to say they have strongly supported our proposals to take the Company forward with a revised mandate for increased dividend cover and enhanced liquidity and returns." https://uk.advfn.com/stock-market/london/uk-mortgages-UKML/share-news/UK-Mortgages-Ltd-Notice-of-EGM/83687241 Benefits of the Proposal The Board considers the Proposal to offer a compelling proposition and has the potential to deliver better value to Shareholders than the alternative of winding down the Company. The UK mortgage market is going through a period where margins have materially improved, enabling generation of significant returns. UKML offers exposure to a hard-to-compile, high performing portfolio which is difficult to replicate. Continuing to fund Keystone, including funding a second pool as described above, and is expected to generate significant income and become central to UKML’s marketing proposition. The Proposal will generate income that means the 4.5p per annum dividend is covered and dividend cover is expected to increase progressively thereafter. The Portfolio Manager expects an IRR in the region of 11.5-13.5% over the next three years as compared to an IRR for managed winding down of the Company of 6-10%. To the extent that the share price does not respond and trade at or above NAV by the second anniversary of the Extraordinary General Meeting, the Proposal includes provisions for further liquidity to be generated provided through the sale of assets or a managed wind down. hTtps://www.twentyfouram.com/view/GG00BXDZMK63/uk-mortgages-limited#documents

[rambutan2] 13/11/2020 22:10

A rare rise in nav, and more to come in Sept: The UKML NAV per share was calculated for August 2020 month end at 81.02 pence per share, an increase of 0.61 pence per share. As part of the year-end reporting and audit process, the Company's IFRS 9 Expected Credit Loss (ECL) provisioning methodology was significantly revised, moving from a series of portfolio level assumptions to a far more granular loan-by-loan level analysis and stress testing process, along with newly developed additional stresses to incorporate the introduction of mortgage payment holidays in the UK following the Covid-19 outbreak. This resulted in an increased provision of approximately GBP1m which was incorporated into the NAV for June 2020. Subsequently it was identified that the change in methodology, also captured an element of loss assumption that had previously been included in the amortised cost valuation, essentially creating duplication and this is now being corrected. As a result of this and model adjustments identified in our audit a further ECL provision of approximately GBP0.5m has been made, but this has been more than offset by a GBP1.8m increase from the removal of the duplication. Additionally, the increase in NAV was driven by the income earned from the Company's underlying investments. Following the refinancing of the Oat Hill No.1 transaction at the end of August, the Company completed the repurchase of c. 41m shares during September using capital released from the refinancing as planned. As these shares were purchased at a discount, this will result in uplift in NAV, estimated at approximately 2.24 pence per share which will be reflected in next month's NAV for September. Meanwhile, the Company's investments continue to perform in line with expectations. More details will be available in the Company's next factsheet to be published shortly.

[yieldsearch] 29/10/2020 21:58

in August they had the same 2 options (liquidate or continue)? so basically made very limited progress???

[rambutan2] 29/10/2020 21:03

The Chairman, Chris Waldron comments: "Having taken stock of the feedback we received from Shareholders in August, the Board has been working intensively with the Manager and with our advisory team to evaluate the various options for improving liquidity and narrowing the discount to NAV. Having narrowed the choices down to two viable options, we will now go back to Shareholders in order to present those options in detail and hear their views on how they wish to proceed." https://uk.advfn.com/stock-market/london/uk-mortgages-UKML/share-news/UK-Mortgages-Ltd-Strategic-Review/83539452

[rambutan2] 12/10/2020 21:49

Re buyback. On a quick check, they were allowed to buy back up to 14.99% of shares (approx 40m), which they did at an average of just under 68p. So on a nav of 80p, that's a £4.8m profit on the £27m spent and translating into a 2% uplift on the 30 sept nav. Although, I'm sure much to the board's frustration, the discount remains rather wide at 20%.

[rambutan2] 12/10/2020 21:19

Latest update: htTps://mma.prnewswire.com/media/1311025/%20%20UKML_Factsheet___August_2020.pdf

[rambutan2] 09/10/2020 01:54

The Directors of UK Mortgages Limited have declared that a dividend of 1.125p per share will be payable in respect of the first interim period. The Directors have also declared an additional interim dividend in respect of the Company's year ended 30 June 2020 of 1.5p per share to compensate for the two previous quarters when the quarterly dividend was temporarily reduced to 0.375p per share, to be paid as follows: Ex Dividend Date 15 October 2020 Record Date 16 October 2020 Payment Date 30 October 2020 Dividend per Share 2.625 pence (Sterling)

[irishmatt] 25/9/2020 08:29

Not sure, I'll have to reread the original announcement to check. Target was 15% so prob done for now. There is the catch up dividend coming soon too

[yieldsearch] 25/9/2020 08:22

by my calc, they have bought 40.92m shares between 1-22 Sept, which is 14.99% of the initial 273m shares as of 1.09 average price of 0.6795, and buying at discount has increase the NAV by £5.175m, approx 2p per share.. irishmatt: are they done after 15% or they are allowed to continue?

[irishmatt] 17/9/2020 09:37

So quite a few more to go to get to the target buyback amount (which if I remember correctly is c15%)

[yieldsearch] 17/9/2020 08:18

Indeed, as of 16Sept, on a cumul basis 7,765,000 shares bought, equivalent to 2.8% of shares # pre buy back Average price of 0.677 £5.19m spent

[irishmatt] 17/9/2020 06:34

And 4.4m more yesterday

[yieldsearch] 14/9/2020 16:54

Looking at the buy back: 01.09 to 14.09: 1,675,000 shares bought back and cancelled (0.61% of pre 01.09 voting rights), at average price of 0.6693 seems to be accelerating, last few days 350k, 250k and 925k.

[yieldsearch] 01/9/2020 17:38

Company buy back today: 100,000 shares at 64p. Yes £64k vs market cap of £175m Lets hope they they can do larger buy back in the future. just posting the notice as fixed cost is probably a lot vs the nav created....

[yieldsearch] 14/8/2020 08:17

hTTp://www.adventurousinvestor.com/2030-uk-mortgages-says-no-again

[rambutan2] 13/8/2020 19:47

And a few hours later... Rejection of Final Possible Offer The Board of UK Mortgages Limited (the "Company" or "UKML") notes the announcement earlier today by M&G Investment Management Ltd ("MAGIM"), regarding an increased and final possible offer for all of the issued and to be issued share capital of the Company of 70 pence per UKML share (the "Final Possible Offer"). The making of a firm offer by MAGIM remains subject to certain pre-conditions and reservations (see Appendix 1). Specifically, the Board draws to the attention of Shareholders the statement by MAGIM that this represents its final possible offer which can be increased only in the event that a third party announces a firm offer. The Board confirms that it is not in discussions with any third party at this time, nor has it been previously. The Board confirms receipt of the Final Possible Offer earlier this morning, following contact between respective financial advisers over the weekend. The Board continues to believe in the quality of the assets in the Company's portfolio, the robustness of the Company's Net Asset Value methodology, as well as the quality of the investment management services provided by TwentyFour Asset Management LLP. The Board believes that the terms of the Final Possible Offer continue to undervalue the Company and its prospects. The Board does not believe this valuation is recommendable to Shareholders and therefore sees no basis for engagement on this Final Possible Offer. The Board refers Shareholders to the Company's announcement on 7 August 2020, reiterating the material undervaluation of the previous proposals and announcing a review of future strategy. The Board confirms that the review would commence once the Company is no longer in an Offer Period under the Takeover Code. The review would be with the aim of maximising the value created for and delivered to Shareholders from the high quality assets that are within the Company's portfolio and would seek to provide Shareholders with a strategy that delivered an understood pathway to enhanced liquidity as well as a narrowing and removal of the discount at which the shares trade versus the NAV. The Chairman, Chris Waldron comments: "The Board considers that the final possible offer continues to be an undervaluation of the Company and does not believe this valuation is recommendable. In addition, the Board reiterates its intention to launch a review of future strategy with the aim of maximising value delivered to shareholders." https://uk.advfn.com/stock-market/london/uk-mortgages-UKML/share-news/UK-Mortgages-Ltd-Rejection-of-Final-Possible-Offer/83064594

[yieldsearch] 13/8/2020 08:42

MnG up their bid to 70p . appparently final unlikely to go through, M&G is providing the explanation in their RNS: MAGIM would need the support of UKML's largest shareholders in order to effect the proposed transaction. MAGIM notes that TwentyFour Asset Management LLP ("TwentyFour") the portfolio manager for UKML, is also the Company's largest shareholder, owning or controlling approximately 17% of UKML's voting share capital. Twentyfour, being the largest shareholder unlikely to approve this, their asset management fee on ukml would be gone. let's assume that that twentyfour is solely acting for the benefits of the shareholders of the 17%..

[irishmatt] 12/8/2020 09:31

Static from what I'm looking at

[future financier] 12/8/2020 09:26

Down 2p so far

[irishmatt] 12/8/2020 09:14

What price movement?

[future financier] 12/8/2020 08:59

Looks like M&G are going to lose out - looking at the price movement today - opportunists getting their just deserts.

[yieldsearch] 07/8/2020 16:33

hTTps://www.londonstockexchange.com/news-article/tidm/headline/14646626 - Dividend interim dvd of 1.5p for y end 30 jun 2020 for quarterly dvd of 1.125 ( 7.1% dvd yield on current 63 price) - Strategy review of future strategy, expected in oct 2020. everything considered from reconstruction/growth to orderly winding down - MnG offer not high enough

[horndean eagle] 24/7/2020 12:24

Odd that m&g actually want to make any offer at all given the way they slag the company off. Another couple of pence and I reckon they can win the day.

[stun12] 24/7/2020 08:36

M&G responds to UKML's dividend announcement hTTps://data.fca.org.uk/artefacts/NSM/RNS/3666445.html