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    <title>Edison Investment Research &#45; recent research</title>
    <link>http://www.edisoninvestmentresearch.co.uk</link>
    
    <dc:language>en</dc:language>
    <dc:rights>Copyright 2012</dc:rights>
    <dc:date>2012-02-08</dc:date>



    <item>
      <title>Mattioli Woods &#45; Investing for growth</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/mattioli-woods</link>
      <headline>Investing for growth</headline>
      <description>Edison Investment Research - <![CDATA[Financials - Mattioli Woods: Given the uncertainty of the investment outlook during the second half of 2011, client activity has been muted in the current period. Mattioli Woods (MTW) advised clients to maintain their defensive positioning, depressing income, during this time but anticipates activity will pick up in H2 as a clearer outlook emerges. The rating gives little credit for the possibility for improved investment conditions and clearer progress on organic growth. <br />ISIN: GB00B0MT3Y97]]></description>
      <dc:date>2012-02-02T15:49:52+00:00</dc:date>
    </item>


    <item>
      <title>Brewin Dolphin &#45; IMS</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/brewin-dolphin</link>
      <headline>IMS</headline>
      <description>Edison Investment Research - <![CDATA[Financials - Brewin Dolphin: In its first quarter to end December interim management statement, BD announced good overall trends in assets managed (up from &#163;24 to &#163;24.9bn against our &#163;25.8bn FY12 estimate), although this was driven by market movements rather than inflows. As expected, commissions fell (down 24.4% on a like-for-like basis) a similar business message to that reported by Charles Stanley. As a consequence, there has been a net cut in 2012 revenue forecasts from &#163;291m to &#163;282m and normalised pre-tax profit from &#163;46.2m to &#163;40.9m. Our dividend forecasts are unchanged. <br />ISIN: GB0001765816]]></description>
      <dc:date>2012-02-01T14:30:37+00:00</dc:date>
    </item>


    <item>
      <title>Optimal Payments &#45; Banking on NETBANX</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/optimal-payments</link>
      <headline>Banking on NETBANX</headline>
      <description>Edison Investment Research - <![CDATA[Financials - Optimal Payments: Optimal Payments&#8217; (OP) FY11 update confirms trading in line with expectations following strong second half growth and completion of the integration programme. Growth in FY12 is likely to be driven by new and existing NETBANX customers, with today&#8217;s Desjardins contract an example of the company&#8217;s positive momentum in payment processing. The stock trades on an EV/EBITDA multiple of 5.4x FY12e, a modest rating compared to its peer group if the company achieves forecast revenue and EBITDA margin growth. We will be initiating full coverage on OP in Q112. <br />ISIN: GB0034264548]]></description>
      <dc:date>2012-01-24T13:59:08+00:00</dc:date>
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    <item>
      <title>Arbuthnot Banking Group &#45; Secure Trust in detail</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/arbuthnot-banking-group</link>
      <headline>Secure Trust in detail</headline>
      <description>Edison Investment Research - <![CDATA[Financials - Arbuthnot Banking Group: We have published a detailed report on Secure Trust Bank (STB), with a product-by-product review of its organic opportunities. This review has led us to raise our 2012/2013 Arbuthnot Banking Group (ABG) estimates. We emphasise we have only included organic STB growth in our numbers &#8211; some analysts estimate inorganic activity could add c 40% to the loan book and hence estimates. ABG trades at just c 60% of its (75.5%) holding in STB. It has completed the sale of its investment banking division (on which it previously announced that 2011 will include c &#163;8m of trading losses and &#163;3.5m of provisions with the final loss on sale c &#163;1m in 2012). <br />ISIN: GB0007922338]]></description>
      <dc:date>2012-01-24T10:33:52+00:00</dc:date>
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    <item>
      <title>Secure Trust Bank &#45; Go, baby, go</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/secure-trust-bank</link>
      <headline>Go, baby, go</headline>
      <description>Edison Investment Research - <![CDATA[Financials - Secure Trust Bank: As a bank with strong capital ratios and excess deposit funding, Secure Trust Bank (STB) is exploiting the vacuum created by the financial crisis in several niches across the UK personal lending market. Strategically, it is also building non-interest income from current/budget accounts. The near-complete withdrawal by competitors allows STB to profitably grow both at exceptionally strong levels. The current price modestly undervalues the existing businesses but gives no credit for the opportunities that the IPO capital raising and strong funding allow; nor is inorganic growth in our numbers. <br />ISIN: GB00B6TKHP66]]></description>
      <dc:date>2012-01-24T10:03:47+00:00</dc:date>
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    <item>
      <title>IG Group &#45; Leading from the front</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/ig-group</link>
      <headline>Leading from the front</headline>
      <description>Edison Investment Research - <![CDATA[Financials - IG Group: Net trading revenue and PBT (both excluding the discontinued sports operation) confirm earlier guidance of a strong performance. More volatile markets have stimulated spread betting activity over the period, but IGG has also grown revenue per customer and has continued to build market share in core markets. We expect further structural growth in spread betting supported by a range of long-term economic, demographic, fiscal and social changes that should lead to greater wealth for the target customer base. Technology, tax and increasing financial awareness should increase their propensity to spread bet (for a fuller discussion see our note on Worldspreads Group). As market leader, IGG benefits from financial, technological and marketing strength. <br />ISIN: GB00B06QFB75]]></description>
      <dc:date>2012-01-17T15:34:16+00:00</dc:date>
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    <item>
      <title>Arbuthnot Banking Group &#45; Pre&#45;close update</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/arbuthnot-banking-group</link>
      <headline>Pre&#45;close update</headline>
      <description>Edison Investment Research - <![CDATA[Financials - Arbuthnot Banking Group: With its pre-close statement Arbuthnot Banking Group (ABG) announced it could not reach agreement on an acceptable structure for a proposed joint venture in its retail division (Secure Trust Bank, STB). While this event is disappointing and has incurred some cost, it does not change the excellent strategic positioning or long-term growth for both STB and ABG. In any case, we had not included it in previous numbers. ABG is valued at c 50% of its holding in STB and also owns a valuable private bank. <br />ISIN: GB0007922338]]></description>
      <dc:date>2012-01-11T08:05:51+00:00</dc:date>
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    <item>
      <title>MCB Finance Group &#45; Upgrades continue</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/mcb-finance-group</link>
      <headline>Upgrades continue</headline>
      <description>Edison Investment Research - <![CDATA[Financials - MCB Finance Group: With the trading statement issued on 28 December, MCB Finance (MCB) advised that both revenue and net income would be &#8220;slightly above market expectations&#8221;. Accordingly, we have raised our EPS estimates by c 2%. We are now forecasting a 2011 normalised EPS of 15.7c. We have continually upgraded estimates throughout the year (in March 2010 we were estimating 6.8c for 2011) as the Fenno-Baltic region has remained highly robust. The share price was dented by an aborted 
de-listing and consequently remains exceptionally low rated for what has been a strong 2011 performance. <br />ISIN: GB00B1LD2G45]]></description>
      <dc:date>2012-01-09T08:47:15+00:00</dc:date>
    </item>


    <item>
      <title>Securities Trust of Scotland &#45; New global mandate, new global manager</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/securities-trust-of-scotland</link>
      <headline>New global mandate, new global manager</headline>
      <description>Edison Investment Research - <![CDATA[Financials - Securities Trust of Scotland: Securities Trust of Scotland (STS) is an income trust that pays quarterly dividends and currently offers a 4.1% yield. Following shareholder approval at the July AGM, the investment mandate was changed so that STS now invests in high-yield global (previously UK) equities. To reflect this change the benchmark has been changed to the MSCI World High Dividend Yield Index (previously FTSE All-Share) and Alan Porter was appointed portfolio manager from 1 August 2011. During the past 12 months STS has outperformed its blended benchmark, by 8.4% and 1.3% in terms of share price and NAV total return, respectively. <br />ISIN: GB00B09G3N23]]></description>
      <dc:date>2011-12-13T09:39:41+00:00</dc:date>
    </item>


    <item>
      <title>Brightside Group &#45; Constraints eased</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/brightside-group</link>
      <headline>Constraints eased</headline>
      <description>Edison Investment Research - <![CDATA[Financials - Brightside Group: Brightside has been informed by the main insurance underwriting capacity provider to the eCar insurance brand (SRICL) that it has secured significant new capacity from a large international re-insurer, effective 1 December 2011. The agreement provides capacity of up to &#163;100m, which at our assumed &#163;500 of premium per policy would allow for an additional 200,000 policies compared with a little more than 120,000 written by eCar (and eBike) in H111. If business can be sourced at adequate pricing and risk then this agreement represents a significant easing of a capacity constraint. <br />ISIN: GB00B1L7MY49]]></description>
      <dc:date>2011-12-12T16:01:48+00:00</dc:date>
    </item>


    <item>
      <title>Beazley &#45; 2012 plans</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/beazley</link>
      <headline>2012 plans</headline>
      <description>Edison Investment Research - <![CDATA[Financials - Beazley: The benefits of Beazley&#8217;s balanced portfolio have been evident in 2011. We expect the group to remain in profit when others may not, continue its progressive dividend policy, and maintain the strategic flexibility of a strong balance sheet. Beazley&#8217;s central expectation is that the operating environment in 2012 will be broadly similar to 2011. Pricing is expected to be slightly positive overall, led by catastrophe exposed lines. But industry over-capacity remains. Beazley expects modest premium growth and, despite continued low investment earnings, a return to more normal catastrophe loss experience should see a marked improvement in returns. <br />ISIN: JE00B64G9089]]></description>
      <dc:date>2011-12-09T13:49:53+00:00</dc:date>
    </item>


    <item>
      <title>Brewin Dolphin Holdings &#45; Growth platform</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/brewin-dolphin</link>
      <headline>Growth platform</headline>
      <description>Edison Investment Research - <![CDATA[Financials - Brewin Dolphin: Brewin Dolphin (BD) offers investors geared access to the expected double-digit long-term market growth from UK and Irish wealth management, where it has consistently delivered AUM growth ahead of benchmarks. Additionally, the group has started a strategic review to bring its margins more in line with best in sector. In the year to September 2011 market volatility worked against the group and there was upfront investment in the strategic review, but still BD delivered adjusted profit growth. The twice covered dividend (Edison 2012e yield 5.4%) is attractive. <br />ISIN: GB0001765816]]></description>
      <dc:date>2011-12-08T14:42:30+00:00</dc:date>
    </item>


    <item>
      <title>Park Group &#45; Successful innovation</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/park-group</link>
      <headline>Successful innovation</headline>
      <description>Edison Investment Research - <![CDATA[Financials - Park Group: Park Group results for the half year to 30 September 2012 show encouraging trends for the full year beneath the usual seasonal interim loss, slightly exaggerated this year by some deferral of business into H2. Corporate customers are up 8% and the Christmas savings business is by this stage &#8220;in the bag&#8221; for 2011 with increased customers, agents and order values. Flexecash prepaid card sales continue to grow as does customer internet use. Cash balances peaked at &#163;152m (&#163;140m) and finance income is ahead 28% despite continued low interest rates. We think the Christmas savings business is defensive, with disciplined, regular saving more attractive in a weak economic environment. The Corporate business is supported by product innovation. <br />ISIN: GB0006710643]]></description>
      <dc:date>2011-12-06T15:22:31+00:00</dc:date>
    </item>


    <item>
      <title>Brightside Group &#45; Strategic development</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/brightside-group</link>
      <headline>Strategic development</headline>
      <description>Edison Investment Research - <![CDATA[Financials - Brightside Group: Brightside is proposing to acquire the businesses that supply and maintain its online distribution in a move that will secure access to these crucial systems and further simplify the group structure. This move has been flagged for some time, but by proposing to act now, Brightside has negotiated a lower price than implied by its 2009 option agreement and has agreed with the related party vendor that the proceeds will be used to support the amount of underwriting capacity made available to Brightside&#8217;s broking division. <br />ISIN: GB00B1L7MY49]]></description>
      <dc:date>2011-12-05T16:02:17+00:00</dc:date>
    </item>


    <item>
      <title>Ai Claims Solutions &#45; No car crash</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/ai-claims-solutions</link>
      <headline>No car crash</headline>
      <description>Edison Investment Research - <![CDATA[Financials - Ai Claims Solutions: The slowdown in motor accident claims frequency means that revenues and profits for the current year will fall short of expectations. Previously management had hoped for some market recovery, but is now more pessimistic. The flexibility in the cost base (the fleet is hired not owned) gives some protection to profits from lower revenues, and there has also been further progress on debtor collections so year-end net debt should be lower than we had expected. We believe this industry should further consolidate around a smaller number of low-cost, scale providers, working co-operatively with the insurers and that ACS is well placed to be one of them. <br />ISIN: GB0009374090]]></description>
      <dc:date>2011-12-01T16:15:22+00:00</dc:date>
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    <item>
      <title>Omega Insurance Holdings &#45; Loss creep</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/omega-insurance-holdings</link>
      <headline>Loss creep</headline>
      <description>Edison Investment Research - <![CDATA[Financials - Omega Insurance Holdings: With forward-looking insurance exposures substantially de-risked and a defensive investment portfolio, Omega has been &#8216;playing a straight bat&#8217; while negotiating corporate developments that will determine future strategic development. Premiums and investment returns are as expected but H1 catastrophe losses have crept higher, as they have for many peers, with an accumulation of smaller-scale catastrophe-related US losses in H2. With additional reinsurance costs, our expected 2011 pre-tax loss increases from $58m to $88m (excluding corporate activity costs of $5m). <br />ISIN: BMG6765P1095]]></description>
      <dc:date>2011-11-24T12:43:15+00:00</dc:date>
    </item>


    <item>
      <title>Arbuthnot Banking Group &#45; Securities sale details</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/arbuthnot-banking-group</link>
      <headline>Securities sale details</headline>
      <description>Edison Investment Research - <![CDATA[Financials - Arbuthnot Banking Group: Arbuthnot Banking Group (ARBB) has now entered into a conditional contract with Westhouse Holdings (WHL) for the sale of Arbuthnot Securities (AS). The sale is subject to regulatory approval from the FSA. We believe this will be well received given AS&#8217;s uncertain near-term financial performance, and the challenging strategic position it was in. The terms of the transaction will reduce 31 October net assets by &#163;4.4m but will relieve ARBB of around &#163;3.3m of regulatory requirement, and may benefit from an ongoing share in an AS deferred-tax asset, transferred with the sale. Combined with the opportunities from the recent partial float of Secure Trust, ARBB is now a high-growth retail bank and high-quality private bank. We will revise our estimates once the deal is concluded, but the affect on our 566p sum-of-the-parts valuation is only 5%. <br />ISIN: GB0007922338]]></description>
      <dc:date>2011-11-21T13:39:03+00:00</dc:date>
    </item>


    <item>
      <title>Record &#45; Record not broken</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/record</link>
      <headline>Record not broken</headline>
      <description>Edison Investment Research - <![CDATA[Financials - Record: The loss of an important client has been a knock to Record, due to high operational leverage (revenue losses cannot easily be offset with cost cuts). That knock should be separated from the decline in earnings and the share price since flotation in 2007; the company was then very dependent on the management of high-margin absolute return funds, invested in a strategy that stopped working with the financial crisis. To do otherwise is to overlook what appears very much to be the right strategy of a broadening product range, increasing marketing reach, and deepening customer penetration. Success would see operational gearing working in the company&#8217;s favour. Balance sheet strength gives Record the time to build track records for new product launches and benefit from its distribution investment. <br />ISIN: GB00B28ZPS36]]></description>
      <dc:date>2011-11-21T10:23:23+00:00</dc:date>
    </item>


    <item>
      <title>IFG Group &#45; Trading update</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/ifg-group</link>
      <headline>Trading update</headline>
      <description>Edison Investment Research - <![CDATA[Financials - IFG Group: This morning&#8217;s IMS announcement covers the period to end October. It shows IFG&#8217;s focus on recurring fee-based income is proving resilient in these tough market conditions supported by careful attention to costs. The group is on target to meet full-year expectations (no changes to our estimates), which allows for a smaller contribution in H2 versus H1, and management anticipates further improvement in balance sheet strength during H2 with net debt falling to mid-single-digit millions. The business does not appear to have suffered from the bid distractions of earlier months. <br />ISIN: IE0002325243]]></description>
      <dc:date>2011-11-18T13:22:01+00:00</dc:date>
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    <item>
      <title>London Stock Exchange Group &#45; Diversified growth</title>
      <link>http://www.edisoninvestmentresearch.co.uk/research/category/london-stock-exchange-group</link>
      <headline>Diversified growth</headline>
      <description>Edison Investment Research - <![CDATA[Financials - London Stock Exchange Group: For the six months to 30 September, LSE produced good growth in revenue and even faster profit growth despite the difficult market environment. The real story in the H1 result is the success of the diversification strategy, which has produced resilient growth and bodes well for calmer times. The unsustainable willingness of Italian banks to pay dearly for cash deposits is only a helpful partial offset to the headwinds of recent market uncertainties. Talks with LCH.Clearnet regarding a possible acquisition by LSE are progressing. LCH would provide a useful strategic solution to LSE&#8217;s lack of in-house clearing capability in London. <br />ISIN: GB00B0SWJX34]]></description>
      <dc:date>2011-11-17T09:36:34+00:00</dc:date>
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