Member Info for jange

The pigeon has moved lol..............RNS tomorrow may be ???

Vote of confidence of peel hunt hopefully not long to wait now..............

As demonstrated by the solidly profitable 86 per cent combined ratio (of claims to profits) reported in 2013, Amlin is a high-quality underwriter. It doesn't share profits with Lloyd's Names, either, as it owns all its underwriting capacity. But Amlin’s shares trade on 1.6 times Numis’s end-2014 forecast for net tangible assets (NTA) of 301.8p, leaving them rated near the top-end of the Lloyd’s sub sector. As prices continue softening, expect that premium rating to suffer, leaving shares in other high-quality underwriters - often more cheaply rated and with better income prospects - looking more attractive. Those of super-yielder Brit, in particular, are a great alternative - its shares trade on under 1.3 times forecast NTA...................

In today’s low interest rate world, and as bond yields have risen, Amlin can’t look to its investment book for much support, either. True, Amlin’s relatively greater exposure to such higher-yielding assets as equities and property has left it generating a better return than at some rivals. But in the first three months, the return from its portfolio of mainly low-risk bonds and cash reached 0.6 per cent - implying a hardly astounding annualised return of 2.4 per cent. That’s too low to compensate significantly for premium rate pressure and broker Numis Securities expects Amlin’s earnings to slip almost a third in 2014 with little bounce predicted in 2015. Neither is Amlin’s near 6 per cent prospective 2014 dividend yield especially impressive for an insurer. After all, less than ideal prospects - as price pressure continues - are persuading some underwriters to return capital that can’t be profitably deployed. On a prospective basis, and buoyed by expectations of special payouts, shares in rival Brit (BRIT), for instance, yield over 14 per cent, while Lancashire's (LRE) yield nearly 10 per cent. Special payouts aren’t thought so likely at Amlin, however. "Our earnings expectations for 2014 would see Amlin’s distributable excess capital position below the level at which it would consider a special dividend," reckon analysts at Berenberg.

Given today’s fairly benign claims backdrop, most insurers are making solid underwriting profits - Lloyd's insurer Amlin (AML) included. But low claims also leave insurers well capitalised and tempted to compete for business by cutting premium rates. The competitive pressure from an influx of new capital, notably insurance-linked securities, is also putting rates under pressures. That softening outlook could prove bad news for the more expensively rated shares in the sector and Amlin’s shares are amongst the priciest. Claims have certainly been low of late. Last year, for example, some of the highest claims in the sector arose from European hailstorms and German flooding which, combined, generated around €7.5bn (£6bn) of losses for insures. But that’s tiny compared with the $70bn (£41bn) or so hit from Hurricane Katrina in 2005, or the $100bn or more of losses in 2011 from such events as a Japanese earthquake, Australian floods, or tornadoes in the US. A relative lack of capital-consuming events since has, therefore, allowed pricing pressure to build - especially for catastrophe-related business lines. Amlin’s catastrophe reinsurance account, on average, saw premium rates fall 8.8 per cent on renewal in the first quarter with rates on US catastrophe lines down 10.3 per cent. Elsewhere, price pressure is less prominent but still apparent. Renewal rates on Amlin’s US property and casualty book, for instance, fell 1.6 per cent in the first quarter.

A bargain basement rating coupled with strong growth prospects, a healthy balance sheet and tasty yield make Tate a sweet choice. Rising demand for healthier food and high-tech ingredients are significant tailwinds, while further acquisitions and overseas expansion have the potential to prompt a re-rating. Admittedly, the sucralose issues are a pain and the dust hasn't settled, the bad news has been overdone while the underlying growth story has been ignored.......................

Further headwinds include currency risk and the volatile bulk ingredients division (BI), which is at the mercy of global sugar markets, corn harvests and the weather. That said, these are conditions under which this multi-billion pound business has been trading for years. Furthermore, as SFI blossoms, it will water down volatility in BI. Indeed, many have been calling for Tate to make a more significant acquisition to achieve just this. The balance sheet certainly could stand it: the net debt-to-cash profits ratio is just 0.8, with interest cover at 12 times. Should this materialise, it could lead to a re-rating, bringing the shares in line with others in the sector. Currently, the stock is trading on just 13 times consensus earnings forecasts for the next 12 months, which is a massive 33 per cent discount to the peer group average. And, should a catalyst take longer to develop than hoped, patient shareholders can still enjoy a 4 per cent yield. Share tip summary

something which Tate excels at. It works with clients on formulations, product prototyping and testing, tailor-making blends to suit individual requirements, so customers remain loyal. That kind of expertise is what the Chinese generics lack. The division also has a good track record without sucralose. Excluding Splenda the division has achieved a compound average operating profit growth rate of 12 per cent since May 2010 compared with 7 per cent when the sucralose operation is included.

It can be risky 'catching falling knives', but in the case of Tate & Lyle (TATE), a recent share price slump provides an attractive entry point to its long-term growth story. The shares have fallen 15 per cent since the beginning of the year and are now lingering at an unjustifiably low rating compared with their global peers. We think this offers investors a unique, albeit contrarian opportunity buy into a well-run company with a healthy balance sheet, that not only promises solid long-term growth at a massive markdown, but serves up a sweet 4 per cent dividend yield as well. Since the sale of its sugar business in 2010, Tate has been focused on high-tech food ingredients and industrial goods, producing things such as corn syrup, ethanol, specialised starches, texturants and sweeteners. Its two divisions - bulk and speciality food - are highly profitable, but it’s the latter which offers the most exciting potential for growth and is benefiting from a great deal of investment. Speciality food (SFI) accounts for 31 per cent of Tate's group sales, but higher margins mean it delivers 55 per cent of operating profit, so it's a vital business. It’s growing too, as industry trends are working in its favour: food producers - Tate's clients - are increasingly using products that address calorie and weight management, heart and digestive health, alongside additives that extend shelf-life and enhance texture and taste. Tate can cater to all of this through its range of sweeteners, both artificial and natural, heart-friendly fibres, starches and low-sodium salt. The innovation pipeline is replete with 35 products, with several to be introduced in the next 12 to 18 months. Emerging markets are a particularly strong growth area, representing one-fifth of SFI sales. Last year Asia Pacific and Latin America produced double-digit volume growth. Acquisitions, though small, are promising too and give Tate a toe-hold in important geographic regions. For example, recently-acquired Chinese polydextrose fibre company Winway offers a springboard from which to expand across Asia. And Swedish oat fibre start-up, Biovelop, has isolated an oat-based fibre proven to reduce cholesterol and control blood-sugar levels. Having snapped it up, Tate plans to more than treble the size of the business. This is all part of a wider £100m investment into the SFI division, which will increase capacity, promote new products and lead to cost savings. But all is not rosy in SFI. The division suffered a serious setback in February when a significant overhang of generic Chinese sucralose stock sent prices plummeting, just as Tate was renewing several multi-year contracts for its Splenda sucralose, which accounts about a fifth of the division's revenue. As a result, profits are expected to dip slightly this year. The good news, though, is that half of Splenda sales goes into food where formulation technology and application support is necessary - something w

Senior is winning market share and civil aircraft worth almost $5trn will be built over the next 20 years. That visibility and a growing automotive market underpin what is an incredibly cash-generative business, with the fire-power for further earnings-enhancing acquisitions. Yes, the strong pound is a headwind, but the relative strength index (RSI) tells us Senior shares are more oversold than at any time since summer 2011. History tells us there's a good chance of a bounce back..............

A crucial presence in Asia, where it is currently adding extra capacity, is winning Senior market share, too. Its Thailand facility has won work with Rolls-Royce for the A350 engine and with Spirit AeroSystems on the B787; and Senior has just paid £75.5m for UPECA, a parts maker based in Malaysia where the aerospace industry is growing fast and labour is cheap. Back on land, there has been a sharp pick-up in truck and car production, which is helping Senior's Flexonics division. Truck sales there rose just 2 per cent in 2013, and car sales fell. But recent figures are already reflecting industry forecasts for a 10 per cent jump in North American truck production this year and 7 per cent in Europe. Car sales in Europe and elsewhere are also rising fast. Growth here should at least offset part of the decline in the smaller military and defence division. Senior makes parts worth nearly $700,000 for the enormous Airbus A400m military transporter, the production of which is ramping up from just a couple of planes in 2013 to 16 this year and 23 in 2015. The F-35 fighter jet and Boeing's P-8 will chip in progressively more, too. And they must, as the lucrative Black Hawk helicopter and C-130J programmes wind down.

A buying opportunity has emerged in Senior (SNR), as shares in the aeroplane parts supplier take a pause for breath in their five-year-long rally. And while earnings growth has slowed from the 26 per cent average between 2010 and 2012, last year's 7 per cent, with a little help from acquisitions, still looks very attractive. Analysts at Numis Securities currently pencil in the same again for 2014, 8 per cent for 2015 and 9 per cent the year after. That kind of growth values Senior shares at just 13 times forward earnings, dropping to less than 12 for next year. Compare that with 16 and 14.5 for the engineering sector for similar, or slightly lower, growth and Senior looks cheap. It trades at a big discount to peers on an enterprise-value-to-cash-profits basis, too. But those forecasts could yet prove to be light, especially given management's reputation for conservative forecasting. In April, the board repeated predictions for further progress this year, particularly during the second half when build rates for new jet planes ramp up. Senior made more than two-thirds of profits from aerospace in 2013, and that's likely to increase this year. Airbus will begin delivering its new A350 in a few months' time and currently has orders for 742 of them. Each one averages almost $400,000 (£235,000) of parts made by Senior. But Boeing's new 787, against whom the A350 will compete, is worth double that and production is now running at 10 planes every month. Boeing's 737 carries about $200,000 of Senior's kit, but it's easily the UK supplier's biggest money-spinner as the Americans make so many of them - 42 every month, rising to 47 in a few years' time. In all, the major manufacturers have over 10,000 planes currently on order. Almost half are for the new lightweight narrow-body planes - the Airbus A320neo and Boeing 737Max. That's good news for Senior, which makes an extra 56 per cent from the new A320 and over 30 per cent more from the Max. Yes, the manufacturers are getting keener on price, but Senior is successfully taking costs out to protect margins.

Investing in Burford is really a play on the company's ability to see its clients win their cases, and so far it has been highly successful. Since inception, 25 investments have generated $147m in gross investment recoveries, producing a 52 per cent net return on invested capital. This in no way means that the rate of success will continue, but Burford's careful selection suggests that there is a good chance it will. For income-seekers, the payout can be a bit lumpy as there is no way of telling how long a case may take to complete, but with a forward dividend yield of nearly 5 per cent and the shares trading more or less level with forecast 2015 book value, the investment case is compelling.......................

Burford has also broadened its revenue stream. Case details are usually withheld under the terms of agreements with its counterparties, but one case was revealed because its client, power generator Rurelec, had certain disclosure obligations, and gave its consent to reveal the details. Rurelec was pursuing an arbitration claim against the Bolivian authorities for the expropriation of one of Rurelec's power plants. The company did not need litigation finance, but found it near to impossible to secure a loan at an acceptable rate to expand the company. At this point, Burford stepped in with a $15m (£8.8m) senior loan at 12 per cent and a claim on some of the arbitration award. Following a successful resolution, Burford received back $26m, generating a 73 per cent rate of return. At the end of 2013, Burford had $264m of ongoing investments. This investment portfolio deals with US litigation, but Burford also made an entry into the UK two years ago though the acquisition of Firstassist, now called Burford UK, a provider of after-the-event litigation insurance. This is where the defendant of a case buys insurance that will pay the expenses if the case is lost. It also gives Burford access to a successful underwriting division, and last year, Burford UK delivered a record profit of over $10m on $20m of revenue. In fact, over $150m of new business exposure was written last year, more than all of the two previous years combined.

Burford Capital (BUR) provides finance for companies with a civil litigation case that they are unable or unwilling to pursue themselves - usually because of the time involved and the cost. Burford then takes a cut of the amount awarded in the case of a successful conclusion, which funds tasty dividend payments. And by and large, Burford has backed winners all the way. For investors, the problem is that legal cases don't really allow any chance of building a regular income stream. So revenue, and consequently dividend payments, tend to be rather lumpy. However, Burford's investment portfolio is getting a lot closer to maturity. All the investments made in 2009, for example, have now been resolved, delivering a 33 per cent rate of return. But around half the investments made in the following two years have yet to reach a conclusion, and only a third of investments made in 2012 have been concluded. Burford has attracted criticism in the past for its relatively high cost base and control over the executives. Both have been addressed; costs fell 10 per cent last year, and, following a restructuring, the chief executive and chief investment officer can no longer receive external advisory, management or performance fees from the company. Nor can they advise other funds, making them reliant on dividends and share price appreciation for returns

Energy Asset's shares currently trade on 13 times earnings forecasts for the current financial year. That's too cheap given the company's exceptional growth profile and considering shares in smaller sector peer Smart Metering Systems (SMS) trade on about 31 times earnings expected over the same period

Renting the meter and collecting its data represent the majority of Energy Assets' business, providing it with a highly visible, reliable revenue stream; in fact, 70 per cent of total revenues are now recurring, up from 55 per cent in 2011. The consulting and engineering side is nevertheless growing fast - revenues and gross profit climbed 28 per cent last year - giving the bottom line a substantial boost............. Underlying EPS rose 73 per cent last year thanks to the operational gearing inherent in the business, with the company investing over £21m in the period mainly on meters. Clearly, if Energy Assets is to continue growing at such a fast rate, it must have sufficient financial firepower to keep investing in long-life metering assets. The company made sure it has enough for at least the next two years when it refinanced its debt and signed a new £35m facility with Bank of Scotland in November 2013; available financial resources totalled around £47m at the year-end. Admittedly, borrowings have risen sharply in recent years and now sit at £51m. But that’s still only around 3.4 times cash profits, which is an acceptable ratio given the debt is secured by a high-quality income stream; metering incumbent National Grid’s (NG.) ratio is 4.8. In the near term, there's also potential for Energy Assets to expand into a multi-utility service provider. The company already provides some data monitoring services for water and electricity meters, but the £2.3m acquisition of electricity specialist BGlobal Metering in April should substantially boost its profile in that sector. True, the company's inexorable focus on growth means that unlike most utility companies, Energy Assets does not currently pay a dividend. But this should change over time as the company's asset base matures and is transformed into a reliable cash machine.............

A fast-growing utility company may sound like an oxymoron - even when we're talking about a quasi-utility company - but that's exactly what's on offer at Energy Assets (EAS). In the 12 months to 31 March, the gas metering services group organically increased turnover 34 per cent, while cash generated from operations climbed 58 per cent. That remarkable growth isn't a one-off, either; as the table below demonstrates, Energy Assets has been growing sales and profits at nearly the same pace for years - and, if broker forecasts prove accurate, the company will continue to grow strongly for some time to come. That's because demand for the installation of Energy Assets' advanced and smart gas meters is being driven by a government policy that every metering point in the UK have a smart-enabled energy meter by 2020. Rising energy prices mean industrial gas users are also upgrading their meters to improve energy efficiency. Energy Assets is at the forefront of this change and is the largest independent provider of metering services to the UK industrial and commercial gas sector. Its business model is simple. Energy Assets borrows money from its bank to cover the upfront cost of installing the smart gas meters, which cost around £850 each. The customer then pays Energy Assets a rental fee each year for the life of the meter - typically 20 years - at an average of £135 annually. The company installed around 20,000 meters last year to take its portfolio to 101,000; broker Numis expects a similar increase this year. Sometimes, Energy Assets also provides meter reading services at an extra cost. Other times, if the customer needs help with engineering design, infrastructure upgrades or compliance and accreditation, Energy Assets will provide these services, too. The cost of meters are fully capitalised on the balance upon installation, and fully amortised through the profit and loss statement over the first half of the asset life.

wonder how many are in public hands aswell...........ive got 5m shares here and will increase when i can free up some funds i believe theres something going on in the background.............may be wrong it wont be the first time lol.............

50.38% of shares out of circulation and by the looks of things that is going to increase.............