W.h. Ireland Share Discussion Threads

[big fat mama] 08/10/2007 18:32

Oldest broker covets Ireland

Chris Barry

8/10/2007


THE City of London's oldest stockbroker is believed to be the leading suitor for Manchester broker WH Ireland.

Sources believe Hichens, Harrison & Co, which was founded in around 1803, will see Ireland as a `perfect fit' with its business.

The source, a close watcher of the sector, said: "I'm sure the bid will come in at around 200p per share, maybe 10p or 20p more, if there is a lot of interest in it.

"It's well run and is an attractive play. The building in Manchester must be worth £8m to £9m, and it's got around £12m of cash, too."

A 200p per share bid for St James's Court-based Ireland would value the company at £32.48m.

A spokesman for Hichens, Harrison and Co, which has a market value of just over £50m, said it had `no comment' to make.

Like WH Ireland, which has branched out from its core broking business to offer corporate finance and investment management, Hichens, Harrison and Co has expanded into new areas in recent years.

Niche

Both firms have international operations.

WH Ireland is particularly strong in Australia, where it has developed a niche business floating mining companies on AIM.

Hichens has offices in Argentina, Dubai, Indonesia, Malaysia and South Africa.

Shares in WH Ireland rose 10 per cent on Friday to 190p, after the company revealed it had received a number of approaches which could lead to a bid.

It is the second time in the past three years that it has been in a takeover situation.

The biggest individual shareholders are chief executive Laurie Beevers, who owns 15 per cent, and managing director David Youngman, who holds 14 per cent.

In July, Ireland posted a strong set of half-year figures, with turnover in the six months to May 31 up 35 per cent to £21.5m, and profits leaping 58 per cent to a record £3.69m.

[makingheaps] 08/10/2007 16:03

At the interims NAV was £1.15. A buyer would seek a discount to buy these assets as they are illiquid. How about 10% valuing them at £1.03. If you strip out both unrealised and realised gains on investments from the P & L at the half year you get eps of 8.6p. Last year the first half was roughly 43% of the whole but if you assume 50% that makes 17.2p for the year. I would have thought a buyer might pay 10x that number so £1.72 for the stockbroking and advisory business, £1.03 for the investment portfolio making £2.75 total.

If the final dividend were to be hiked by the same percentage as the interim that would make it 7p and therefore 9p for a full year. If the share price were £2.75 that would make a yield of 3.27% which is pretty much the market average.

I think your £2.20 may be too conservative

[onlyonestorm] 08/10/2007 13:23

£2.20, but thats a complete guess!!!

lol

Stormy

[makingheaps] 08/10/2007 11:19

Anybody care to speculate what a bid might be worth?

[sportbilly1976] 05/10/2007 15:12

gower,

bill - I've not got your address ?

[andyh78] 05/10/2007 14:21

Got it ta.

[andyh78] 05/10/2007 14:17

Yeh I'm good thanks,

Don't think I've got your email, i'll tell you all about it off BB.

[sportbilly1976] 05/10/2007 14:08

andy,

hows things..??

who got DA's job?

could be interesting once they see PHS & HA's contribution to the bottom line.....key person contract clauses will be looked at closely me thinks??

you got my personal email address?

[its the oxman] 05/10/2007 12:43

sold out today - good luck to those staying put c.188p

[sportbilly1976] 05/10/2007 11:19

be interesting to see who the plpayers are - Charles Stanley & Brewin's I would have thought are two.....

[onlyonestorm] 05/10/2007 11:17

I wonder what price? MMMMmmmmmm!!

[skyracer] 05/10/2007 11:01

Ahhh! Thanks Billy. As I say above I had been wondering about the significance since yesterday. I prefer the old format of holdings RNS. Less confusing.

Whatever, glad to be on board !

[sportbilly1976] 05/10/2007 10:37

Skyracer,

WHI have increased their holding in Ultimate to 27%, not the other way around - a number of WHI directors are on the Board at Ultimate....

[onlyonestorm] 05/10/2007 10:16

ZIPPETYDODAAAAAAAAAAAAA!!!!!!!!

[quepassa] 05/10/2007 10:10

This is an attractive, well-run dividend-paying Manchester-based regional broker with an excellent network of UK offices. An announcement of an approach. This one will run. Well-structured cash rich balance-sheet, intersting Australian subsidiary. Some intersting financial investments.

Worth following developments.

This company has the potential to attract further interest now that an informal approach is announced.

See their we-site:-

www.wh-ireland.co.uk


all imo. DYOR

QP

[skyracer] 05/10/2007 10:01

I have to say I had wondered about the possibility of this with Ultimate Finance Group increasing their holding to 27.5%, rns yesterday. They must be involved somewhere.

[deadly] 04/10/2007 23:39

really making headway now - too good to last, possible bid, or reason taking hold?
Wish I'd taken more of the scrip divi which was at only 147p.

[handycam] 07/9/2007 15:51

A trip to fair value is very unusual - PMR and Collins and the whole sector getting tonked. So, the chart is saying that there must be somebody taking a look.

[anou1] 14/8/2007 09:17

Not many breakouts today, but done very well with this one ..

[cockneyrebel] 14/8/2007 08:17

Making a big breakout - bid target on this low valuation imo

CR