reports
Hybridan Small Cap Feast - 19 April 24
19th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi...
Hybridan Small Cap Feast - 12/04/2024
12th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: Change of Market: TheWorks (WRKS.L) a multi-channel value retailers of books, arts and crafts, stationery, toys and games, offering customers a differentiated propositio...
- Emily Liu
Hybridan Small Cap Feast 14/11/2023
Dish of the day Joiners: No joiners today. Leavers: Ergomed has left AIM. What’s cooking in the IPO kitchen?** 9 November: Chapel Down Group ITF: England's leading and largest wine producer with an award-winning range of sparkling and still wines, under the Chapel Down brand. The Company owns, leases and sources from 1,023 acres of vineyards in South East England announces its Admission to AIM after its transfer from the Aquis Apex market. The Company will not be raising new capital or providing...
- Roger Leboff
Discusssions underway to unlock value
The investment case pivots on the progress of strategic options under consideration for the two operating businesses. Specifically, these relate to the outcome of discussions with potential buyers for each entity, a process which has been simplified by their legal separation. We see potential scope to realise a net return above R&Q’s current market value. Initial discussions focus on Accredited, R&Q’s program management business for which it confirms receipt of interest from a number of parties...
- Colin Smith
R&Q Insurance Holdings - FY22 Results
R&Q reported an adjusted group pre-tax operating loss for the year to end December 2022 of US$33.3m (2021 (US$21.4m)). The results were in line with guidance from the April trading statement but represented a significant deterioration YoY as strong results from the Accredited program management business were more than offset by losses in the R&Q Legacy insurance business and higher corporate costs. On an IFRS reported basis, R&Q made a loss of US$297.0m (2021 (US$127.1m)) generating a loss per s...
Hybridan Small Cap Feast - 29 Jun 23
29th June 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objecti...
- Roger Leboff
Completing separation of group businesses
R&Q’s US$60m equity issue is key to its plan to separate its legacy and program management operations. It enables its PM business (Accredited) to access an AM Best rating on a standalone basis, without any of the issues related to reliance upon the group balance sheet. The new funds assist that clean break by (a) increasing the capitalisation of R&Q Legacy, which is providing reinsurance support for completed legacy transactions originated by Accredited and (b) generating cash for general corpo...
- Colin Smith
R&Q Insurance Holdings | Financing Update
R&Q has raised US$50m in preferred equity with potential to increase to US$60m. The financing is being provided by Scopia Capital Management which has a last disclosed holding of 8.0% in R&Q. The proceeds are to be used to increase capitalisation for the R&Q Legacy business and for general corporate purposes. R&Q has now received all approvals necessary to complete the separation of the Accredited program management and R&Q Legacy businesses in connection with which Accredited is no longer payin...
- Roger Leboff
Major acceleration of strategic refocus
Momentum behind the group’s strategic refocus is gathering pace. This year R&Q has sold its minority (40%) stake in Tradesman and set up a new JV with OBRA Capital to acquire non-insurance legacy liabilities. That builds on the creation in 2021 of Gibson Re to transform its legacy operations onto a less capital intensive, fee-based model. The latest proposal is the most material transformation from a group perspective. It would create two separate standalone entities from its core operations, p...
- Colin Smith
Strategic & Trading Update
R&Q announced an important strategic update which should see the separation of the Program Management and Legacy Insurance businesses. That reflects the rapid growth in the Program Management business which is now able to self-sustain the credit rating it needs to support new business. Implementation would result in completion of the strategic drive to transform R&Q into a recuring fee-based speciality insurer with more predictable, lower volatility earnings and less risk. Separately, R&Q advis...
Hybridan Small Cap Feast - 17 Mar 23
17 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv...
- Colin Smith
FY22 Program Management update & Tradesman disposal
R&Q has confirmed the rapid growth in Gross Written Premium and associated Program Fee Income which is core to the company's transformation into a recurring fee-based specialty insurer with more predictable, lower volatility earnings and less risk. It has also sold its entire 40% holding in Tradesman, by far the company's largest holding in a Managing General Agent, for a consideration of $47m in a compelling offer. The announcement generated a strong positive response in the market with the sha...
Hybridan Small Cap Feast - 23 Feb 23
23 February 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objec...
- Roger Leboff
A flying start to ’23 with new JV and Portfolio wins
R&Q recently announced the first acquisition by its new joint venture with OBRA Capital. OBRA, which recently changed its name from Vida Capital, holds a 9% stake in R&Q. With this transaction, R&Q taps into a potentially new distribution channel represented by an emerging trend identified by insurance industry research. This trend sees large industrial (non-insurance) groups increasingly seek ways to achieve finality in respect of their long-tail liabilities that relate to worker compensation...
R&Q Insurance Holdings Ltd: 1 director
A director at R&Q Insurance Holdings Ltd bought 30,000 shares at 70p and the significance rating of the trade was 68/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years ...
- Roger Leboff
Divisional growth on track, group scaling up
The interim results were a strong reminder that operationally RQIH remains on track to meet its defined strategic targets. Some of this was obscured during the first six months by an unsuccessful bid and a US$130m equity issue (completed in June/July), the legacy of which is yet to fully unwind. We reviewed these in detail in our note published in August, which also reiterated the fundamental investment case. The latter pivots on a strategy to create two recurring fee-based, less capital-intensi...
- Roger Leboff
Strong operational progress to give perspective
Only two months ago shareholders saw sufficient potential upside to reject a bid at c. 128p equivalent (i.e., 175p offer, adjusted for a subsequent share issue which added 37.1% to the equity base). They then fully supported an equity issue, which added c. 28.5p cash per share, based on the enlarged capital base. Operational updates since the bid have all been encouraging with both core businesses well on track (Program Management a year ahead of prior forecasts) to deliver transformational str...
- Oliver Juggins
Randall & Quilter - FY21 Results Quick Take - Jun 22
Program Management achieved outstanding growth, and the operating leverage has really started to take effect. In Legacy, the shift to a capital-light, recurring revenue model is in full swing, but the results were marred by the $90m impairment of an asset in a subsidiary, and a negative swing in reserves – both of which have conspired to mean cash is required to repair the balance sheet. We see minimal short term risk, however, as the response to the placing and open offer has been strong: it...
- Roger Leboff
Prospects for an independent R&Q
On 1 April 2022 R&Q announced a recommended (175p/share) acquisition by its major shareholder, Brickell PC Insurance Holdings LLC (Brickell). The price represented 1.8x tangible net asset value and a 20% premium to the unaffected market price. That was accompanied by news of Brickell’s commitment to provide US$100m of new equity. This transaction was prompted by the results of in-depth review of the group’s legacy insurance portfolio initiated by new management in Q4 2021. This reflects the ne...
- Roger Leboff
Further strong momentum in PM division reported
The consistent performance by R&Q’s Program Management (PM) division puts it comfortably on track to achieve its stated targets and our forecasts. As an operationally geared operation, we anticipate a notable step-up in profitability as Gross Written Premium (GWP) builds on the back of a larger program base. A positive Group outlook is supported by the creation, announced in September, of Gibson Re, a ‘sidecar’ which transforms the group’s Legacy division into a what is effectively an asset ma...
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