Our Strategic Approach
It is the aim of Quob Park Estate to leverage the experience, contacts and skills of the company and, in particular, the Founder, Board, and senior management team to:
- advise, work with, fund and invest, primarily, in entities operating in the insurance, health, telecoms, utilities and technology market to deliver disruptive business solutions, with a view to transforming such markets through digital disruption and other such innovations. The initial focus of the company in this area of activity will be in the UK, Canada and Germany due to likely forthcoming legal and regulatory changes, targeting a level of disruption previously exploited in the UK by our team in order to generate significant investor returns;
- source potential investment opportunities in public and private companies where it is considered that such assets are either undervalued and/or underperforming but where, with the support and guidance of the Company, value can be enhanced and assets can be realised for value with a targeted return of no less than 50% for our investment within 12 months;
- utilise the Board’s unique M&A methodology to acquire and incubate companies with significant growth potential, whilst significantly reducing the risk for all stakeholders typically associated with this type of investment.
It is anticipated that revenues will be generated by a combination of consultancy/advisory fees, management charges in relation to corporate central functions, debt funding and equity investments. We will use our own capital alongside investment capital from high net worth partners or funds as appropriate. In addition, Quob Park Estate is likely to issue further shares from time to time, either as consideration for acquisitions, or to raise additional capital to fund debt and equity investment opportunities.
By utilising equity as the acquisition capital, successful investment into relatively early stage companies or startups has been enabled, without suffering the problems of dis-incentivisation of management teams or the failure to achieve efficiency savings that would normally occur with large cash transactions.
This methodology has been key to undertaking a significant amount of M&A activity within a short period of time, whilst avoiding the pitfalls associated with typical M&A transactions and also benefiting from the significant level of growth and accretion associated with incubation phase companies.
When working as a business in the market that Quob Park Estate is operating in, the number of transactions involved generate numerous fees for our trusted advisors, which are necessitated by the need for some of these transactions to be sanctioned by regulated firms.
Having had significant experience of working with their transaction team in the past, one of our trusted partners is Daniel Stewart & Co plc, which is also one of our investments. The position we have undertaken in Daniel Stewart is based upon the clear opportunity for a significant correction to their current valuation in the next twelve months, purely from the profits they are likely to generate from working with us, as well as the potential to collaborate on a number of projects that will benefit from working with a FCA regulated firm.
Quob Park Estate’s unaudited management accounts for 2015 indicate adjusted profits of c. £4.5 million.
In recent investments shares were issued at £10 (£5 in 2015), implying a market capitalisation of c. £80 million and a historic P/E ratio c.18x. Key Performance Indicators for 2015 include:
QPE share price increase (based on average equity issue and secondary trade prices) since 2015
QPE targeted investment returns typically 50% within 12 months of the full investment
QPE investments that met our targeted returns within 2015