Next full moon 17th June.
Next full moon 17th June.
In 2014, Dorchester paid around $12m for Oxford, for $3m of earnings before interest and tax. Operating profit is now 11.2m. So at the same multiple, the finance division should be worth at least $45m and I would hope more like $60-70m. Its now a larger, more diversified business and prices should have increased since 2014. That's almost a third of Turner's current market cap.
From the presentation: “Whatever the outcome of the strategic review, Turners will continue to maintain its close relationship with Oxford Finance through its expanding distribution platform..."
I suppose they could create a contractual relationship with Oxford before selling it. Perhaps they view the investment in Finance companies a bit like their property investments - capital intensive in the short term, but providing an opportunity for both capital gain and ongoing synergies in the long-term because they provide a guaranteed revenue stream...
Good to see the market appears to like what Turners said yesterday
Onwards and upwards for the share price from here I reckon.
Yeah, NAH. There's so many other things to worry about in life...I'll leave you to watch the moon cycles.
You know me, I bark whenever I feel like it whatever the state of the moon :p
Market's given the TRA result the big ho-hum which is not surprising.
I do note despite TRA's regular assurance that they've been targeting better quality new lending their overdue debtors have blown out quite considerably, (especially very badly for non recourse MTF sourced lending as predicted by some hound on here many months ago) which really tells me they don't have as good a credit handle on their operation as they would lead us to believe so probably it is best for shareholders if they do sell it.
I would expect HGH or any other interested parties who might conduct really thorough due diligence in due course will find plenty of fish hooks in their receivables ledger not previously encapsulated by TRA's "robust" provisioning model so real adjusted earnings will probably be considerably lower than what's stated in TRA's most recent financials with consequent effect upon the sale price.
They say Finance and collections services worth a bit over $150m... (before corporate costs are accounted for), still quite a bit given market cap of turners only $211m
TRA continues to trade below NTA ($2.58), below an analysts target price ($2.59), and way below where management reckon its worth ($3 'worst case')
Has to go up eventually one would think?