W.h. Ireland Share Discussion Threads

[paleje] 02/3/2015 11:27

Ok cheers thanks for clarifying.

[meijiman] 02/3/2015 10:50

Probably rather extreme of me to say that -in fact WHI has some IPOs lined up.I get an update from them which is easy enough to subscribe to.Should have said there is less activity than last year, and also I think the pending election may muddy the waters. WHI is not a badly run shop by any means but the spike up to 140p owed something to bid speculation.Not difficult to put forward a case for a sum of the parts being higher than the present share price -just didn't see enough in the numbers to see what would trigger an upward re-rating.

[paleje] 02/3/2015 09:54

Meijiman,

When you say the IPO business has dried up, are you saying that's it kaput! Or that 2nd half last year the Scottish referendum dulled appetite and early this year UK election is doing the same? So short term uncertainties or long term trend for IPO's?

[meijiman] 02/3/2015 09:30

Equity Development is paid to be bullish. The IPO business has dried up. The broking business is worth nothing -the funds under management is worth the usual % of funds under management but it really only comes into play if there is a serious approach. I wouldn't rule that out-but such are the big egos involved these deals normally only happen at times of extreme stress.

[paleje] 02/3/2015 09:19

Well spotted Gargoyle, might get some IC comment in the next day or so too.

[gargoyle2] 02/3/2015 08:57

Equity Development still bullish:

In the year to November 2014 WH Ireland increased the higher quality Discretionary assets under management by 43% to £723 million, and also increased its Advisory assets under management to £952 million.

It has also announced a dividend of 2p, up 33% from the 1.5p declared in 2012/13. Recurring revenue rose 13%, and the cash position improved from £6m to £7.5m.

A read across from the very recent takeover of Ashcourt Rowan by Towry suggests a valuation way in excess of the current market cap. of £22.3m. A sum-of-the-parts valuation: 4% for discretionary AUM, 2% for advisory and 0.5% for execution-only, one times pre-tax for corporate broking, plus surplus cash and the equity in the Head Office Property comes to £60m or 251p/share; using 3% and 1.5% in a non-take-over situation and applying a 10% conglomerate discount still gives 185p, virtually double the current share price.

[tintin82] 02/3/2015 08:39

It had not exactly been a great year for AIM

[salpara111] 02/3/2015 08:27

I'm out and consider myself lucky to have picked up a decent gain for 2 weeks holding.
I really dont get the fact that these guys along with one of their main competitors Panmure Gordon always say that their outlook is "difficult" if your outlook continues to be negative when markets are hitting all time highs and corporate activity is also booming then there is clearly a problem with your business and not the sector.
Good luck to those remaining on board.

[paleje] 23/2/2015 11:24

Haven't seen any recent tips, Gargoyle. ST follows this one, he might have a view after next week's RNS.

[gargoyle2] 23/2/2015 09:54

Was Friday's rise the result of a tip? No news, as far as I can see.

[paleje] 23/2/2015 09:49

Indeed tanelorn, and results a week tomorrow when current trading and outlook will be the important thing.

Apart from the last RNS giving a misleadingly poor first impression the Telegraph article a few weeks back didn't help either; it inferred client numbers had dropped but it was using data which did not reflect real story. I contacted the Telegraph's Marion Draker after it and also Richard Killingbeck and the fact is that client numbers have increased not decreased and that will become clear soon.

Those who sold may have made a wrong decision.

[tanelorn] 20/2/2015 09:57

Did you bother to read their last trading update?.

edited.. Whilst we don't expect great things for the last reporting period, perhaps news is leaking that matters aren't as bad after-all.

A pal of mine, a chartered accountant, advises it's extremely difficult to keep account information secret whilst presentations are being compiled.

[salpara111] 20/2/2015 09:42

Taken a stake here for the first time.
Market activity has been pretty strong over the last 6 months so as long as they have performed in line with the market they should have something positive to say.

[paleje] 20/2/2015 08:30

Rathbones Wealth Management reported good numbers yesterday and more to come notwithstanding some caution about global conditions.

Mark Nicholls, Chairman of Rathbone Brothers Plc, said:

“2014 was a challenging year for most investment markets, which became increasingly volatile in the second half. Despite this, Rathbones had another good year and achieved strong and broad-based growth. Our total funds under management grew by 23.6 % over the year to £27.2 billion and we warmly welcomed more than 5,000 new clients during the year.

“Rathbones looks forward to future growth opportunities in the sector, but remains aware of the possible adverse market effects that current political and economic uncertainty, both in this country and overseas, may have. I look forward to seeing the full benefit of our 2014 acquisitions in 2015, and working with our board in the coming years to develop and grow the business.”

[tanelorn] 20/1/2015 16:21

Full year results will be issued on Monday, March 2(nd) 2015

[paleje] 13/1/2015 16:48

Not sure what sparked the selling over the last few days, the profit warning is history and the missed revenue should boost the current year which we'll already be a quarter of the way through when they release the numbers.

Increasing the divi by 30% was confirmation to my mind that things are ok. Plus the strong balance sheet, reorganisation mostly behind them now and word (according to ST) that they're kicking off 2015 with an increased client list and a lot of work to get through before the election gets close.

Equity Devs forecasts EPS of ~8p for the current year makes a PER of 10 but if you take out the 7m cash it's less than 7 which seems like good value unless there's something serious we don't know about.

[paleje] 12/1/2015 08:36

Have you chased them, G2, brief follow up email might explain. Agree at face value poor service but might be an explanation.

[gargoyle2] 12/1/2015 06:10

Went onto WHI's website about 10 days ago to request details of their private client stockbroking services. Just filled in the online form and send it off. Still no response. Pretty bad customer service imo.

[tanelorn] 05/1/2015 17:47

5th Jan. Got (second) another 15k at 90p. No point in over-paying

[tanelorn] 02/1/2015 19:31

Topped-up 15,000 at 90p courtesy of my broker.

Tried for more, but alas no!!

Not enough going cheap!.

[paleje] 05/12/2014 09:45

Flurry of IPO's in early new year according to Numis.

[paleje] 03/12/2014 12:13

You were right tintin, ST endorsed strongly in his column, won't print the whole piece but his conclusion:-

With the benefit of the deferred client capital raisings set to come through, news of forthcoming corporate clients wins, new mandates on the private client side (yet to be reported), and a far more profitable business mix following the reorganisation, the platform is in place for some bumper profit growth in 2015. Buy.

[tintin82] 03/12/2014 09:31

Initial trading this morning as expected. Nice top up point IMO. I would be pretty sure another article for ST will be coming within the next few days expanding on the positives.

[paleje] 03/12/2014 09:19

Undervalued according to hannahh's lot, link to full note below.

The shares continue to look undervalued. Without seeing the balance sheet we
cannot calculate our “rule-of-thumb” valuation of 2% of AUM plus surplus capital,
but that is obviously around £50m, more than twice WHI’s current market
capitalisation. Meanwhile the PFER is only 12.0x which is barely two-thirds the
sector’s (historic) PER, so much too low for a growing company.

[hannahh] 03/12/2014 09:06

Hi,

We have published a new note on WH Ireland today.

To access it please visit
www.equitydevelopment.co.uk
Registration is free.

Thanks,
The Equity Development Team