Abbey Protection Share Discussion Threads

[masurenguy] 12/12/2012 07:43

28 Sep'12 - 143: I see no reason whatsoever to doubt that the company will obtain their ABS license....Having spoken to a member of their BoD recently, he reaffirmed that the delays are due to technicalities and are not related to any issues of principle.

Edit: Technicalities finally resolved and ABS license has now been obtained ! This should fuel further synergetic business growth with inital development focused upon their existing financial services clients.

RNS Number : 2948T
Abbey Protection PLC
12 December 2012

Alternative Business Structure Licence ("ABS Licence")

The board of Abbey Protection plc, the specialist supplier of legal and professional fees insurance products and services to UK small-and-medium sized enterprises, is pleased to announce that its trading subsidiary, Abbey Protection Group Ltd ("APG Ltd") has been granted a licence ("Licence") by the Solicitors Regulation Authority to operate as an alternative business structure under the Legal Services Act 2007. The licence was granted on 11 December 2012 and is effective from 1 January 2013. The Licence will enable APG Ltd to provide a wider range of legal services to its clients from 1 January 2013.

As part of the process to secure the Licence, APG Ltd will undergo a partial restructuring. On 1 January 2013, the trading divisions of Abbey Tax Protection and Accountax will be transferred from APG Ltd to a newly formed, wholly owned subsidiary of APG Ltd called Abbey Tax & Consultancy Services Ltd. From that date, these businesses will trade as divisions of Abbey Tax & Consultancy Services Ltd.

[masurenguy] 11/12/2012 08:47

Retraced the original October rise this morning and broken through the 100p threshold once again ! :o)

[masurenguy] 05/12/2012 14:49

Good news - Abbey Protection could become ISA eligible in due course. "We will consult in allowing investment in SME markets like AIM to be held directly in stocks and shares ISAs, to encourage investment in growing businesses" extract from George Osbornes Autum Statement 5th Dec 2012.

[masurenguy] 04/12/2012 10:18

The shareprice is gradually retracing its path back to the 100p threshold, following the top slicing sell off at the begining of last month. The year end trading update is due next month, when there may also be some further news on their outstanding ABS license application.

[masurenguy] 13/11/2012 09:55

Looks like the 6% retrace from the end of October record high, that would appear to have been prompted by the top slicing recommendation revealed in #150 above, is now over. The daily average trading volume, which shot up to 110,000 per day during November 1 - 3, has subsequently settled back into a more mundane average volume of 10,000 per day since then.

New investors can still capture an excellent pospective 5% yield at 97p on offer today, whilst many longer term shareholders can expect their yield to be 40% higher at around 7%. The year end trading update is usually released in January and hopefully we might get some positive news on resolving the technical issues which have delayed the issue of their ABS licence at that time.

[masurenguy] 02/11/2012 08:38

It was quite interesting to note that the number of views on this thread yesterday constituted the third highest volume to date in 2012. This indicates that many PI shareholders are fairly passive and only visit when they are looking to make a transaction, following a Buy/Sell recommendation elsewhere or when an interim/final report has been published.

[masurenguy] 01/11/2012 18:32

Ah, obviously a catalyst - it's unusual for such a comparatively large number of mostly small transactions to be executed without a Buy or Sell recommendation, without any relevant newsflow affecting the company.

[grahamburn] 01/11/2012 15:28

Possible (probably) occasioned by a sell recommendation yesterday - well, top slicing recommendation - by a widely followed financial site which had become overweight in its holding in the company in its "real investment portfolio".

[masurenguy] 01/11/2012 13:14

Some inevitable PI profit taking and/or top slicing after the strong recent rally.

[the other kevin] 24/10/2012 09:09

Through the pound barrier now. I've been lurking for a while ever since TMFM, if I may make an assumption, recommended this little wonder in another place, as they say. Many thanks Mayn.

[masurenguy] 24/10/2012 09:09

There she blows - the £1 threshold breached for the very first time at 8.50am this morning !

[masurenguy] 18/10/2012 23:18

Well it looks like the share price has now taken a breather and has got a second wind. :-).
We could see £1 very soon !

[tmfmayn] 17/10/2012 15:44

Hi Masurenguy -- quick note to say thanks for the informative reply. Some good snippets of info/opinion there (Southern Cross, technical issues with legal application etc) to keep us enthused while the share price takes a breather!

[masurenguy] 08/10/2012 17:00

Todays ATH of 95p prompted by a 30,000 Buy @94.75p just before 11.00 this morning.

[masurenguy] 28/9/2012 12:40

Hi Mayn - I'm sure that the recent price rally has further vindicated your investment here in addition to the consistent increase in yield over the past 3 years. In my own case that yield now constitutes circa 7%

Masurenguy - 28 Nov'11 – 96: Very interesting to see that ABB is the largest individual stock holding (@13%) within TMF Deputy Editors (Maynard Paton) own personal portfolio......Abbey Protection representing almost one third of his investment in individual shares.

I think that despite this recent rally, the share price still has considerable further potential to grow. With a likely eps in the region of 8p this year the current PER @94p is circa 11.7 and when you deduct free cash of circa £16m from the equation the EV/ER drops below 10. This is still quite a modest valuation when you consider that it also produces a yield at the current shareprice of circa 5.2%, if the year end dividend increases on a pro rata basis to the interim payment.

In addition to the current free cash position, the company has no debt or pension deficit and the strength and resilence of its business model has clearly been demonstrated throughout the market volatility over the past 4 years. Even the loss of a major client like Southern Cross, who went into administration last year, was quickly absorbed with the only material consequence being that it diluted the increase in profits. As the company stated at the interims: " Renewal rates for our existing scheme and affinity clients were strong and £0.75m of new business in the first half of the year has demonstrated that the pipeline remains healthy." Furthermore, as fund manager Gervais Williams stated some six months ago the price to book ratio is three, which is the second highest in the insurance sector and return on equity is nearly 27%.

Grahamburn - 19 Sep'12 – 138: My only niggle and concern is that the licence for new legal work seems to be taking too long and the directors comments are somewhat repetitive. Have a nagging doubt that it will materialise (ie the delays don't quite add up to usual bureaucratic rede tape). If it doesn't happen then some of the forward-looking positivity in the share price may evapourate.

I see no reason whatsoever to doubt that the company will obtain their ABS license. That will facilitate an expansion of their range of legal services, which should enable them to quickly exploit the synergies that can be utilized with their existing client base. As also stated in the interims: " we remain hopeful that the technical issues delaying the process will be resolved shortly." Having spoken to a member of their BoD recently, he reaffirmed that the delays are due to technicalities and are not related to any issues of principle.

The company has plenty of further growth potential, a very strong balance sheet and a new growth area for incremental revenue and income streams next year once the ABS license is finally granted. They have never come to market for any additional funds since the IPO and have enough free net cash available to fund any likely acquisition that may present itself in order to accelerate their legal services opportunities.

The increase in the share price continues to be restrained by relaticely low liquidity - the total annual volume of shares traded is circa 17m or 17% of the shares in issue - which is a very low ratio for a quoted business but this primarily reflects the fact that insiders and their nomad Numis collectively still hold two -thirds of the shares in issue. That of course tends to inhibit volatility both to the upside aswell as the downside.

However there is plenty of future growth potential in the share price with their existing insurance, financial and consultancy business in addition to the prospects that will materialize in legal services once the ABS license is obtained. They must also remain a potential acquisition target for a larger financial services company at some point in the future. This share remains a core stock in my portfolio and I make no apologies for my confidence and enthusiasm for it as a quality investment, now and for the future.

[tmfmayn] 21/9/2012 08:22

another lurker. abb has been ignored for too long and a bit of posting enthusiasm should be expected after the recent rally. not as if this thread is full of rampers, troublemakers etc,

[abc125] 19/9/2012 22:07

lurker also. been a cracking little share over the last few years during the market turmoil.

[mranon] 19/9/2012 21:47

Likewise.
I appreciate Mas keeping the thread ticking over. Most threads are crammed with garbage, this one isn't.

[che7win] 19/9/2012 21:33

I'm a lurker:-)

[grahamburn] 19/9/2012 17:24

Masurenguy.

Recognise your genuine enthusiasm and excitement at the relentless climb in the share price, but feel you are not only stating the obvious but also speaking to yourself. Out of the last 24 posts, only two have been by people other than yourself - and one them was me!(OK, I admit I am listening as I call in whenever there's a new post, but I too can see what is happening, and read RNS's, without being prompted.)

Perhaps there are other lurkers, but suspect you are possibly suffering from a well-known and common investor characteristic: confirmation bias.

However, having said that, all your comments are valid and long may the share price continue on its upward trajectory. This company has been ignored for far too long and deserves its day in the sun.

My only niggle and concern is that the licence for new legal work seems to be taking too long and the directors comments are somewhat repetitive. Have a nagging doubt that it will materialise (ie the delays don't quite add up to usual bureaucratic rede tape). If it doesn't happen then some of the forward-looking positivity in the share price may evapourate.

Keep up the good work, though, but perhaps moderate the number of postings about "ATH" because if the price stalls or drops back on less-than-positive news you may feel a little embarassed.

[masurenguy] 19/9/2012 16:44

First ever Buy @94p today and yet another ATH at the close. Gently accelerating over the past couple of weeks as it heads toward the 100p threshold ! :0)

[masurenguy] 17/9/2012 17:24

Always possible but the two principal inside shareholders, Davison and Ward, who are the CEO and GMD respectively and hold nearly a third of the shares, are only in their early 50's, so I would imagine that it would have to be a lucrative deal to persuade them to sell at this point in time.

[shawzie] 17/9/2012 17:14

Heading for a takeover?

[masurenguy] 17/9/2012 16:59

Another ATH closing price of 91.9p with some buys above 92p for the first time today. The shareprice has been consistently moving up over the past three months and the next price target of 100p is now in sight.

[grahamburn] 12/9/2012 16:49

Not quite right - Record Date is Friday, XD is today.

So price held up well today.