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Daily Grime: STJ; ICG; PAG

ByJeremy Grime
Published 30/01/2020, 08:40
Updated 09/07/2023, 11:32

Randall & Quilter (LON:RQIH) announces another legacy portfolio transfer. No numbers disclosed.

St. James’s Place (LON:SJP) – Q4 Update

Share Price 1141p

Mkt Cap £6,104m

Conflict Disclosure: No Holding

  • Update 2.1% net inflows in the quarter brings AUM to £117bn. Over 12 moths the net inflows are 9.4% against the number of qualified advisers up 8%. AUM is up 22% over the year.

  • Estimates In December 2020 23% PBT growth is anticipated on the back of 17.5% revenue growth which looks reasonable in the light of 22% AUM growth

  • Valuation PER 21.1X Yield 4.5%

  • Culture While the press tells us the company is toxic the staff reviews are largely positive on Glassdoor. The incentivisation of the self-employed staff is strikingly different from say Brewin Dolphin who reported net inflows of 1% annualised yesterday.

  • Conclusion The unstoppable marketing machine continues apace. While their charges seem high the model looks likely to continue to deliver.

    • Intermediate Capital Group (LON:ICP) – Q3 Trading Update

    Share Price 1720p

    Mkt Cap £4,995m

    Conflict Disclosure: No Holding

  • Update AUM is up 4% in the 3 months to September while third party AUM is up 5% over the quarter. Performance fees, which are weighted to the end of a fund’s life are expected to grow over time and are expected to add 10-15% to management fees currently. The balance sheet portfolio was £2.3bn.

  • Estimates A significant increase (47%) in PBT is expected in the current year on the back of last year’s 29% increase in AUM. This is forecast to reduce to 9% growth to March 2021 which looks highly likely to be too low given AUM are up 15% over the first 9 months of this year.

  • Valuation PER 18.6X yield 3%. The NAV is £1.4bn delivering an 18% ROE so the shares trade at 3.5X book value.

  • Culture Highly paid and highly incentivised. It gets highly reviewed on glassdoor at 4.4 with 100% approval of CEO.

  • Conclusion I have always been nervous of the highly paid culture but the company is delivering and looks set to continue to deliver while it is inexpensive. Looks like an effective compounder.

    • Paragon Banking Group (LON:PAGPA) – Trading Update

    Share Price 527p

    Mkt cap £1,351m

    Conflict Disclosure: No Holding

  • Update Net loan book up 1.6% over the quarter to £12.4bn. CET 1 ratio was 14.2%. Buy to let lending was 1.1% higher while overall mortgage lending was down 4$. The pipeline of buy to let lending is accelerating. Commercial lending was up 19.9%.

  • Estimates 2.3% EPS growth is expected to September 2020 followed by 9% in 2021.

  • Valuation The ROE is 11.9% and it trades at 1.2X book value. PER 10.1X Yield 4.2%

  • Culture The glassdoor rating is 3.6 with 82% approval of the CEO

    • Conclusion This is looking a little dull, which is perhaps why the shares have gone up 27% over the last 12 months. It is perhaps a safe place to hide but I am struggling to see the USP.

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