Brown (n) Share Discussion Threads

[creditcrunchies] 09/1/2023 12:08

Good luck with that Jackson I'd certainly be looking to add on any weakness in share price from here.

[jackson83] 09/1/2023 11:49

opportunity to bank profits & SHORT this now IMHO

[jackson83] 09/1/2023 11:32

Don't forget the £290m loan as the net cash position failed to mention this

[davebowler] 09/1/2023 09:17

Shorecap-
N Brown Group+
Allianz dispute settled for £49.5m – a
distraction removed
A cloud has been hanging over the N Brown Group (‘N Brown’) investment thesis for some time; the
legal dispute with Allianz. Accordingly, both the Group and we are pleased to see a settlement
announced, noting that the cost is ahead of the balance sheet provision of £25.5m, at £49.5m, albeit
funded from ample liquidity. N Brown can now press on with its operating strategy unencumbered by
this distraction. HOUSE STOCK.
Full & final settlement: N Brown Group, the Manchester based apparel and home wares pure-play
retailer with a strong in-house credit facility, has announced that it has reached ‘a full and final
settlement’ with respect to the outstanding legal dispute with Allianz Insurance PLC (‘Allianz̵7;). N
Brown is pleased to see the back of this outstanding case, which was set within its JD Williams
division (‘JDW’), as are we, the detail on which we shall now explore.
Completion of the JDW dispute for £49.5m: The dispute between N Brown and Allianz related to
‘redress paid to customers by JDW and the Insurer in respect to certain historic insurance
products’, which included payment protection insurance. Whilst no admission of liability has
occurred, the negotiated settlement involves JDW paying Allianz £49.5m, a sum that is below the
£70m+ of claims by the Insurer when interest charges and legal costs are taken into account.
Settlement payment is expected to be completed by the end of January 2023.
P&L reconciliation to come: N Brown Group has a February financial year-end. The Group had
provided £25.5m with respect to anticipated coverage of the Allianz dispute, a figure that the
settlement exceeds by £24.0m. Accordingly, in the FY23 preliminary results, to be issued in the
spring, we anticipate a charge for the outstanding balance between the provision and the
settlement, which we would expect to be treated as a non-underlying and non-recurring item in
thy present year. Net cash balances will also reflect the settlement payment, which we will adjust
following the forthcoming Q3 trading statement (see below).
A sense of relief: Whilst N Brown’s shareholders will not be blind to the magnitude at a £49.5m
settlement, this brings to an end a long chapter of legacy costs that the business has had to face
into for some years, well before the present senior management team’s tenure. Indeed, we should
underscore the sense of freedom of such external legacy distractions with this settlement on issues
that go back to the last century.

[creditcrunchies] 09/1/2023 08:15

N brown did have an enterprise value of 361.26 million and a market cap of 116.96 million. A book value of 100p on the latest Time to Market valuation.

[camo1997] 09/1/2023 08:10

Ah yes, apologies, £25.5m, just re-read

[creditcrunchies] 09/1/2023 08:09

Offer price is rising probably on the grounds the unknown is now known and it's 20 million less than the worst case scenario

[sidam] 09/1/2023 08:06

Camo I think you will find your numbers not absolutely accurate. The numbers are 49.5 and 25.5 leaving a shortfall of 24. There are also some intangible assets, but NAV should still be a multiple of closing price.

[ivancampo] 09/1/2023 08:00

Game changer

[creditcrunchies] 09/1/2023 07:58

That puts a line through the court case this'll be interesting to see what the valuation is now.

[darrin1471] 09/1/2023 07:45

Ouch

The Company will release its quarter 3 trading and outlook update on Thursday, 12 January 2023.

[camo1997] 09/1/2023 07:36

So legal dispute settled?
They had £29.8m provisioned.
Total fee was 49.8m
So ~20m off their reported equity of 461.9 reported 27 August 2022?
So still book value per share of ~95p?

[my retirement fund] 05/1/2023 22:37

What's going on with the financial legal dispute? I have not heard anything remotely positive yet, surely longer this goes on the worse the cost and could bankrupt them, right?

[outsizeclothes.com] 05/1/2023 20:59

NEXT trading update provides a reasonable read across here. Clothing sales generally good, and better than many analysts predicted.

[creditcrunchies] 05/1/2023 09:24

The only stuff they got in stock on one of their sites is the dross all of the good stuff like brand label stock has pretty much sold out they just have odd sizes left. Can't speak for the other sites they run across the group though. One plus is that they've been delivering goods throughout peak period because they don't use Royal mail

[darrin1471] 04/1/2023 09:52

12 January 2023 Q3 trading statement

hxxps://www.nbrown.co.uk/investors/financial-calendar

[jackson83] 01/1/2023 06:15

profits warning on the cards 10p

[jackson83] 31/12/2022 04:57

expect we will see 20p again

[creditcrunchies] 23/12/2022 08:19

The court case is with JD Williams which is part of N Brown group so I'm not sure how long they've been part of N Brown or what the implications actually are. Like all of these complicated court cases they're best settled out of court with a compromise.If you look at the whole group it's made up of Simply Be, JD Williams, Jacamo, fashion, Crazy clearance, Premier Man, Ambrose Wilson, Home Essentials, Marisota, VivaLaDiva. So I'm guessing all of them are operating from warehouse hubs directly with Evri

[creditcrunchies] 23/12/2022 08:12

It's Evri believe it or not when you hear about Evri you hear a lot of criticism but I've been astounded just how slick they are with N Brown group. All I can think is they've got a premium account with Evri with the company actually operating directly inside the N Brown ordering warehouses.

[camo1997] 22/12/2022 21:41

darrin1471
Evri for mine. Which according to the general public are shocking, but had no issues myself. Last ordered arrived today.

fyi, above messages are for our friend jackson83

[camo1997] 22/12/2022 21:38

Please back your numbers with some discussion, more than happy to converse on this further, sure you have some great ideas!

[jackson83] 22/12/2022 16:55

looming COURT CASE next year

[jackson83] 22/12/2022 16:51

I CAN SEE THIS DRIFT BACK TO 10p's IN 2023 ... OVERVALUED