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MJ Hudson issued their 10 day notice yesterday.Guarantor loans At 1.57pm yesterday Amigo announces it had received the outcome of the FCA’s Guarantor Review, which effectively gave the guarantor market the all clear subject to some enhancements to be made to the customer journey. The shares were down 3.4% on the day and at 60p trade on a PER of 3.6X and yield 15% from a 1.8X covered dividend. Non Standard Finance was also down 0.6% on the day and trades on a PER of 5.6X with a yield of 12%. Perhaps the market doesn’t believe the estimates.City of London Group appoints a CFO and CRO to its Recognise subsidiary ahead of the planned bank launch in 2020. The CFO is ex Aldemore and the CRO is ex Dunfermline Building Society and Newcastle Building Society.Rathbones acquires the Court of Protection business of Barclays (LON:) Wealth. 600 clients and 10 staff transfer over. No numbers givenPremier Miton Group – FY Results
Share Price 168p
Mkt Cap £266m
Conflict Disclosure: I Hold
Results This is effectively Premier results as the merger occurred on 14 November. AUM of £6.6bn was modestly down over the year from £6.9bn with net outflows of £233m. Revenue was close to flat at £48.66m representing an average fee margin of 72.3bps. Underlying PBT was £19m (2018 £18.9m) and underlying EPS was 15.99p (2018 14.66p). Cash was £20.7m and EBITDA margin 39.5%. Outlook is well positioned for future growth.3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure
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XPS Pensions Group (LON:) – H1 Results
Share Price 126p
Mkt Cap £258m
Conflict Disclosure: No Holding
Results. Revenue up 8% to £56.3m. Adjusted EBITDA up 11% to £13.3m. PBT £4.4m and adjusted EPS down from 4.2p to 4.1p. DPS flat at 2.3p. Outlook anticipates full year in line with expectations. New business pipeline is said to be healthy. Net debt £76m. Net tangible assets are negativeEstimates. Full year EPS is expected to be flat at 9.8p and then is expected to rise 6% in 2021.Valuation PER 12.9X, yield 5.2%Conclusion This stock bears all the hallmarks of a low growth business which has been leveraged by private equity and dressed up as a growth business for the stock market. The yield has some attractions but the rating looks up with events.3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure
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Ince Group PLC (LON:) – H1 Results
Share Price 120p
Mkt Cap £44m
Conflict Disclosure: No Holding
Results Revenue up 125% to £45.3m and PBT £4m. EPS 6.3p with 2p DPS. Net debt was £10.4m. Organic growth reported at 5.3%. Outlook is confident and the £100m revenue target is reiterated. The company has 378 fee earners representing revenue/head in H1 of £119k (2018 £122k). The adjusted PBT number of £4m however is £10.7m in statutory terms less the £7.1m profit share and acquisition costs of £461k. This implies it includes the £3.9m negative goodwill on acquisition.Estimates. Full year estimates assume £94m revenue, below the £100m target and £11m PBT.Valuation. PER 5X Yield 6.3%. 0.5X revenueConclusion On a PER basis the shares are cheap but the gain on bargain purchase is not a repeatable profit. The PAT attributable to shareholders is £1.9m which includes a one off bargain purchase gain. I can’t trust the profitability of the trading business. Amigo Holdings (LON:) – H1 Results
Share Price 60p
Mkt Cap £285m
Conflict Disclosure: No Holding
Results Loan book up 8.8% to £731m and revenue up 11.8% to £145m. Impairments up sharply to 31.1% of revenue (2019 H1 23.3%) and cost income ratio up to 20.8% (2019 H1 23.3%). Adjusted PAT down 24.2% to £35.8m. EPS 7.5p. Leverage is 2X. The outlook statement refers to addressing capacity constraints in the business and guidance for the full year is unchanged. 85% of the loan book is up to date (2019 H1 88%)3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure
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Conclusion It appears the market is not keen on this one trading at a PER of 3.6X. I expect these results may provide some reassurance that despite the issues it is extremely cheap.
