Market's view on Arbuthnot
Published on April 2024
- Concerns over Wealth Management and Bus & Truck Finance divisions’ losses, with Stock Watchers questioning the viability and strategy of continuing these activities despite consistent revenue.
- A significant profit before tax increase reported, with before tax profits jumping from £20.0m to £47.1m, highlighting a substantial improvement in financial performance.
- The company announced operating income growth and an increase in earnings per share, alongside heightened dividend payouts reflecting a stronger financial position.
- A noted rise in net assets per share and capital ratios indicating enhanced financial stability and regulatory compliance.
- Surplus liquidity significantly above regulatory minimum, illustrating robust financial health.
- Debate on the strategic direction with new director appointments in unlikely areas such as Fintech, raising questions about the company’s future focus.
- Discussion on potential vulnerability to a takeover due to current share price levels, with speculation about the possibility of the company going private.
- Observations on the company’s quick financial reporting post-period end, suggesting efficient accounting practices.
- Speculations about market re-rating for UK banks and potential mergers among smaller banks, indicating a possibly changing landscape in the banking sector.
- Discussions on share price momentum following financial results and strategies for sustainable growth and profitability.