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PremierMiton– Trading Update
Share Price 92p
Mkt Cap £144m
Conflict Disclosure: I Hold

Update –. Net outflows of 1.5% in the quarter is an improvement on the 3 months to December but market falls have resulted in AUM reducing by 21% over the quarter to
£9.15bn. Cash is £29.3m. Merger integration is on track for harmonisation during 2020. Senior management salary reductions have been made. New dividend policy of 50%-65% of adjusted PAT. The quarterly payment is therefore reduced to 0.75p. In future dividends will be half yearly.

• Estimates – The £64m revenue forecast was based on the Q1 AUM of £11.2bn, so this is likely to come down. There is some cost savings so not all will flow to the £19m PBT bottom line. If the 10.2p EPS forecast came down 15% we may get a dividend of 4.5p-5.5p.

Valuation EV/AUM 1.3%. If (which is a big IF) earnings were 8.7p the PE would be 10.5X and yield c. 5%

• Conclusion The share price has lagged other in the sector to recover and the net outflows may not be as bad as the market feared. Early days but with new funds launched this could be a turning point. However, with fund managers the power of momentum shouldn’t be underestimated so I find its best to treat them as momentum investments. Shares have rallied 30% off their lows but are extremely cheap.

Share Price 400p
Mkt Cap £386m
Conflict Disclosure: No Holding

Update Net outflows of 1% is a significant improvement on the 8.5% in the prior quarter. With market falls AUM was down 14.5% over the quarter to £12.2bn. No mention of salary cuts or dividend policy.

Estimates Forecasts for the year to March 2021 are for flat revenues from March 2020 which may be aggressive given AUM is 12% lower year on year.

Valuation EV/AUM 2.4%. On March 2021 current estimates PE is 11.7X and yield 7.7%

Conclusion With reduced net outflows the company could be close to turning. The shares have rallied 40% from their low 2 weeks ago. Plenty to go for.

Alpha Financial Markets Consulting– Pre Close Update
Share Price 129p
Mkt Cap £133m
Conflict Disclosure: No Holding

Update Results expected to be in line with expectations (£18.9m PBT). Net cash £20m and very little effect from COVID 19. Some small projects have been delayed and some lengthening of client approval process has been experienced which may have an impact in the future so guidance withdrawn. CEO, CFO and NED’s volunteered a temporary 40% salary cut.

Estimates Current estimates expect 5% PBT growth to March 2021.

Valuation PE 9.3X for March 2020. Yield 5.3%

• Conclusion The shares have halved si (more…)

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Lenders The P2P lender Basset & Gold collapsed into administration yesterday as Assetz capital asks its investors to vote on a 3 to 6 month period for pausing or reducing…

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JTC – Acquisition Share Price 430p Mkt Cap £490m Conflict Disclosure:No Holding Update – £32.3m initial consideration for the acquisition of a US based specialist fund administration business, NES Financial,…

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