Pre 8 a.m. comments
Firstly, just on a house-keeping matter, I'd like to flag up a free Webinar that Stockopedia are holding today - i.e. an online tutorial in how to get the best out of Stockopedia. It's at 12:30 today! I've signed up for it, as there are so many great features buried in this website, that you might never find unless you are shown them. There are only a few places left, so if you're free at 12:30 then I encourage you to sign up here.
Michelmersh Brick Holdings (LON:MBH) announce the sale of a 15 acre site in Telford for £4.6m in cash, with £3m deferred for 1-2 years. That will put a bit of a dent in their £18.4m net debt. There looks to be a lot more property on the balance sheet too. I remember meeting the management some time ago, and thinking they had a pretty marginal business on the brick-making side of things, but who knows it might pick up if & when we finally start to build enough affordable houses in this country for the number of people who actually live here now!
So Michelmersh is really a special situation based more around its property assets than its operating business.
Quindell Portfolio (LON:QPP) have announced a 3-year deal with Honda. As usual, it's all couched in language which obscures what the deal actually is. But from what I can make out, it's based around the low margin business of supplying credit hire cars through Ai, which provides the bulk of Quindell's turnover, yet only £3.5m p.a. profit. The rest of Quindell's profit comes from mysterious software revenues that have apparently sprung from nowhere.
Accident Exchange and Helphire also provided similar deals (I recall ACE having one with Audi). Quindell claim that they manage a much broader range of services, and co-operate with insurers, as opposed to trying to fleece them with excessive charges, which was arguably the business model of other operators in this sector in the past.
Quindell also claim to have a, "continued focus on an ethical approach for the industry"! Well it's a pity they don't seem to have adopted an ethical approach towards their stock market announcements, since they blatantly misled the market over the true…