Quayle Munro
www.quaylemunro.com TICKER: QYM EXCHANGE: LQuayle Munro can be described as an independent investment banking group although it prefers to call itself an independent corporate finance adviser, as the advisory business accounts for more than 95% of group revenue. The small minority derives from its fund management division. It also occasionally makes specialist investments using its own money. The group is based in Edinburgh, the heart of the Scottish financial market, but its London office is of comparable size. Its corporate finance division sets itself to look for solutions to problems, with two main categories: financial advisory solutions and capital raising solutions. It has particular expertise in PFI projects and funding for higher education (universities and colleges) which jointly comprise half the transactions completed in the last four years, and since the acquisition of van Tulleken in 2008 in media, information technology and publishing.
LATEST REPORTS

- Specialisation in PFI advisory business fuelling fee growth
- Record total return per share
- Fair value 1,284p compared to current price of 887.5p

- 65% increase in turnover
- 206% increase in profit before tax
- ED valuation now £11/share

- Quayle Munro concluded the financial year to June 2004 with highly satisfactory preliminary results.
- This was the year that saw the company transferring its listing to AIM from the LSE main market (October 2003), the refinancing of Morris Group and the transfer of the bulk of Quayle Munro's PFI investments to The PFI Infrastructure Company (PFI Co).

- Quayle Munro is significantly changed by the transfer of most of its PFI assets into the newly launched PFI Co.
- Quayle will act as investment manager to the fund in addition to receiving £4.3m cash.
- Income will be underpinned by growth in the recurring revenue base brought by investment management fee income.
- The record of stable and growing dividends continues to be supplemented by lumpy special dividends.
- Our 'fair value' assessment of 797p compares with a current market price of 602.5p.

- Quayle Munro (QM) experienced a high level of PFI project closures during the last financial year and, as indicated in the annual report, entered the current year on a much quieter note.
- This is reflected in the lower interim results recently reported. However, the management is confident that the second half will show a significant improvement.