Dwf Share Discussion Threads

[tole] 12/12/2022 17:27

https://masterinvestor.co.uk/equities/dwf-group-an-investmet-case-for-legal-outfit/

[pdt] 08/12/2022 07:54

Good half year results;

"Growth, strong profitability and active management of cost pressures.DWF, the global provider of integrated legal and business services, today announces its half-year results for the period ended 31 October 2022. The Board is pleased with the Group's continued strong performance, particularly given the macro-economic headwinds affecting the majority of sectors."

Looks like we are on target for divi of 6p for the full year which would be yield of 7.5% at today's share price.

[sharesoc] 17/11/2022 22:03

ShareSoc is hosting a seminar in London on 07 Dec 2022 5pm

Companies presenting: DWF Group plc (DWF), Manolete Partners Plc (MANO) and Burford Capital Limited (BUR)

This seminar consists of a 25-minute presentation by each company followed by 15 minutes of questions and answers. Companies presenting are interesting growth companies of small/medium cap size. Attendees will have the opportunity to talk directly to the directors of the presenting companies. This is also a great opportunity to socialise with your fellow investors and discuss these and other investment opportunities.

Click here to register:

[r9505571] 07/11/2022 09:33

Thoughts on the acquisition? Appears to be doubling profits but a fare whack of debt assumed in the process!

[mcmather] 05/10/2022 17:17

SP down 26.7% (11/10/22) since the appointment of Berenberg.

[lab305] 23/9/2022 08:48

What's wrong with this share ?

[km18] 21/7/2022 17:00

DWF Group plc (DWF) posted FY results for the year ended April 30th 2022. Performance was in line with market expectations and reflects significant progress towards medium term targets. Revenue was up 3.8% to £416.1m, profit before tax swung back to positive £22.3m. Diluted EPS improved by 18.4p to +6.5p. Net revenue per partner increased by 6% to £975k. The new 3-division operating structure was fully embedded last year to provide a platform for sustainable, profitable growth. Two acquisitions in Connected Services have bolstered an already very strong organic trajectory and there is a significant pipeline of M&A opportunities to explore. The business has been growing steadily for a number of years and looks set to continue on this trajectory, the first 2 months of trading for FY23 have been strong. Valuation is reasonably attractive with forward PE ratio at 8.6x ranking the Group top quartile for the sector. Share price lacks some momentum and has been in a shallow correction through 2022 so far. DWF is certainly a share worth monitoring, but there is no obvious rush to buy...

...from WealthOracle

[mcmather] 21/7/2022 08:26

Wins in FY22 include the UK central government legal services panel, NHS Resolution, Allianz and LV=.

The first two months of trading for FY23 have been strong.

Despite the prospect of challenging macro-economic conditions, we remain confident in our medium-term guidance.

[rat attack] 08/7/2022 18:44

DWF Group is significantly undervalued says Zeus

DWF Group plc (LON:DWF) has announced it is on track to deliver our FY22 adjusted PBT forecast despite some challenges particularly on utilisation during H2. Lock up days also continue to fall, and we sense increasing confidence in delivering medium-term strategic growth, reflected in a growing M&A pipeline. We continue to believe DWF is significantly undervalued, and the current valuation is at odds with its execution to date, strong growth outlook and sector leading dividend.

¨ Trading update: DWF Group has issued a reassuring trading update for its year end to April 2022. Adjusted PBT is in line with our forecast and is >20% higher than the prior year showing the ongoing strategic progress the Group continues to make. Further reductions in lock up days have also been made at 180, a 6 day reduction YOY. Confidence in medium term guidance provided in July 2021 has been reiterated.

¨ Key themes: Looking at revenue in more detail, strong activity levels continued into H2 with organic growth running at 6%. The UK was a standout performer delivering 9% growth during the period. Despite high activity levels, which we see as a strong pre cursor for growth in FY23 and beyond, utilisation did prove to be more challenging in H2 due to COVID absences and a build-up of holiday. We believe the holiday cliff edge has now passed and would expect utilisation to bounce back from here. Indeed, Q4 revenue exit run rate of 8% gives us confidence here. Despite these headwinds, adjusted PBT has been held and implies a 2pp increase in margin to 12% as strong margin and cost control came through. In addition, an agreement with Hauzen, an independent law firm in Hong Kong has been reached extending the global network of associations. A significant pipeline of M&A opportunities are also under consideration, which we see as a sign of confidence in management’s ability to reduce leverage and execute its medium term strategic plan.

¨ Forecasts: On the back of this update, we are tweaking our revenue assumptions to reflect H2 utilisation rates previously discussed. We have flowed this through into FY23 and FY24, which could prove conservative. However, we are holding our adjusted PBT and EPS forecasts in each year due to the strong margin and cost control evidenced to date. Our FY22 net debt assumptions have been reviewed and were below the previous Group guidance of £65-70m, which has been maintained. The increase in our net debt forecast stems from payment deferrals, which are not expected to occur from FY23.


¨ Investment view: We believe DWF Group remains substantially undervalued both against its peers and intrinsically vs. its medium-term targets. In our last note ‘Growth, income, quality earnings’ we considered the valuation from a number of different angles, and remain comfortable with our intrinsic value target of 212p per share. While there are some economic headwinds and utilisation issues facing DWF, we believe the current management team is building a strong track record of execution and a FY23 P/E of 9.4x backed with a yield of 7.5% is at odds with this and vs. a wider Legal services sector on a P/E of 17.3x, yield of 3.6%. FY results are expected on 21 July,

Summary financials
Price 103.0p
Market Cap 335.1m
Shares in issue 325.4m
12m Trading Range 97.2p – 130.0p
Free float c.40%
Next Event FY22 Results. 21 Jul

Financial forecasts
Yr end Apr (£’m) 2021A 2022E 2023E 2024E
Revenue 338.1 350 379 400.2
y.o.y growth (%) 13.8 3.5 8.3 5.6
EBITDA 58.2 65.5 70.8 76
Adj. EBITDA 46.1 53.5 58.8 64
Adj. PBT 34.2 41 46.6 51.7
EPS (p) ful dil. adj 7.4 9.8 11.2 11.9
DPS (p) 4.5 5.9 7.8 8.3
Net (debt)/cash 60.2 68.5 58.9 49.2
P/E 14.1 10.6 9.4 8.8
EV/EBITDA 8.7 7.6 6.8 6.1
Div Yield (%) 4.3 5.6 7.5 8

[mcmather] 26/5/2022 07:53

Interesting re the HK tie up; "This is a key global financial centre and we see a clear opportunity to increase activity"

[lab305] 03/5/2022 14:51

What's happening here since the newspaper tip ? I thought the future was bright but it just seems to drift down on no volume.

[mcmather] 21/4/2022 16:22

Some small / odd trades presently going through.

[typo56] 22/3/2022 17:14

KGH are down a massive 51% today on warning of "the impact of Omicron and recent macro conditions". This appears to have read across to KEYS but not DWF today. Why's that? DWF better value?

[tole] 22/3/2022 06:51

DWF shares are too cheap, says Shore CapitalLegal services business DWF (DWF) still trades at too much of a discount to peers, says Shore Capital.Analyst Rachel May retained her 'buy' recommendation on the stock after it announced joint ventures with law firms in Spain and Portugal as it grows its operations. The shares closed 0.4% higher at 115p on Monday.'Having performed well post the half-year results, the shares have given back some of the strong performance,' she said.'The rising geopolitical tensions and slowdown in capital markets may have impacted investor sentiment towards DWF. Still, given the diverse nature of DWF's operations, both in terms of its geographic exposure and service lines, we remain optimistic on the outlook for the group.'May said despite the 'operational progress made under the new management team' the shares still trade on a full year 2022 price/earnings ratio of just 11.4x, which is a 24% discount to peers, with a 'sector-leading dividend yield of 6.1%'

[tole] 16/1/2022 12:50

https://www.thetimes.co.uk/article/there-are-reasons-to-be-cheerful-for-law-firm-dwf-0xb9xgn8r?shareToken=07f465289726c31ea7ad80467342bb06

[tole] 20/12/2021 14:44

https://masterinvestor.co.uk/equities/dwf-group-making-real-progress/DWF Group – making real progressBy Mark Watson-Mitchell 20 December 2021 3 mins. to readDWF Group – making real progressToday I return to one of my previous profiled stocks.It is ambitious, it is growing and is very well managed.Furthermore, compared to its peers, its shares are undervalued.The businessThe DWF Group (LON:DWF) is a leading global provider of integrated legal and business services.It has an Integrated Legal Management approach that seeks to deliver greater efficiency, price certainty and transparency for its clients, without compromising on quality and service.The group provides integrated legal and business services on a global scale through its three offerings – Legal Advisory, Mindcrest and Connected Services – across its eight key sectors.Its aim is to seamlessly combine any number of its services to deliver bespoke solutions for its diverse clients.The group employs some 4,000 people across its thirty locations globally.It has five strategic associations – in Turkey, Singapore, Saudi Arabia, South Africa and in the US.Its services cover eight sectors – consumer, energy and natural resources, financial services, government and public sector, technology, media and communications, and finally, transport.The three offeringsThe Legal Advisory Services division provides premium legal advice and commercial intelligence services.Its services include banking, finance and restructuring, commercial, regulatory and data, corporate, dispute resolution, employment and pensions, insurance real estate and tax and private capital.The Mindcrest Outsourced and process-led legal services division is designed to standardise, systemise, scale and optimise legal workflows.Its services include compliance, contracts management, legal analytics litigation and investigations.The Connected Services division is engaged in providing products and business services that enhance and complement its legal offerings.Its services include claims management and adjusting, corporate governance and compliance, costs, forensic, learning, regulatory consulting and risk.A massive global marketplaceThis £362m capitalised group has determined ambitions to grow considerably and become the leader in its services.It is a very big marketplace in which it trades, worth $750bn globally and growing at the annual rate of 5%, while the alternative legal services market is growing three times faster.The equity splitThere are 325.35m shares in issue.Larger holders include The DWF Group EBT (9.18%), Miton Asset Management (6.11%), Cartesian Capital Group (5.48%), Standard Life Investments (4.77%), Sand Grove Capital Management (2.97%), Andrew Leaitherland (2.41%), Premier Fund Managers (1.56%) and GAM International Management (0.86%).Latest resultsOn Thursday 9 December, the group announced its interim results for the six months to end October. It reported a 3.8% increase in revenues to £203.5m, while adjusted pre-tax profits were an impressive 39.6% better at £18.7m.Splitting the revenue down saw a 2% growth in legal advisory, a 14% growth in Connected Services and growth of 8% in Mindcrest.The gross margin was 1.7% improved at 51.3%, with each of those divisions showing revenue, profit and margin betterment.The current period trading is indicating further demand and strength.It is now apparent that the group's client proposition of providing integrated legal and business services is gaining traction and leading to a strong pipeline of instructions.Broker's ViewAnalysts Mike Allen and Rachel Birkett at the group's brokers Zeus Capital suggest that the operational transformation of this group is now showing meaningful progress against its targets.For the year to end April 2022 they estimate revenues growing from £338.1m to £364m, while adjusted pre-tax profits could increase from £34.2m to £41.1m, worth 9.9p (7.4p) in earnings per share, covering a rise in dividend from 4.5p to 5.9p per share.The analysts see £388.8m in 2023 revenues, then £410m in 2024. In those years they forecast profits of £46.6m then £51.7m, earnings of 11.2p then 11.9p and dividend of 7.8p then 8.4p respectively.Noting that DWF is trading on a big discount to the average 18.7 times 2022 earnings of its peers, Zeus considers that there is a 50% medium-term upside for its shares.My ViewI really like the way that this group is shaping up, it has lofty ambitions and the in-built ability to achieve its aims in due course.Its high-yielding shares, now 111p, have been an excellent performer since my profile at the start of June last year.That they have risen nearly 66% since then does not put me off from setting a new Target Price of 140p for 2022.

[asagi] 08/12/2021 17:54

results tomorrow

[tole] 16/8/2021 07:00

DWF due a significant re-rating, says LiberumThe transformation is almost complete at legal services business DWF (DWF) and a 'significant' re-rating is coming, says Liberum.Analyst James Allen retained his 'buy' recommendation and target price of 135p on the stock, which closed down 1.8%, or 2p, at 115p on Friday.He said the company's last accounting year was one of 'transformation' for the group, which implemented 'cost-saving initiatives of £15m', closed offices and reduced its staff headcount.'Benefits were felt immediately and management has met or exceeded market expectations for two consecutive results, with he underlying profit before tax margin doubling, earnings per share increasing 145%, and evidence of strong cash generation at the full year 2021 results,' said Allen.The key bear points around Allen's investment thesis have been addressed and conservative guidance means 'DWF is well placed for a significant re-rating in full year 2022'.

[tole] 15/8/2021 14:43

https://masterinvestor.co.uk/equities/small-cap-round-up-featuring-dekel-agri-vision-and-dwf-group/DWF Group (LON:DWF) – strong demand for the shares presages a big riseOn Wednesday of last week, a number of the partners of this legal and business services group placed 13.34m shares (roughly 4.1% of the firm's equity) at 102p each. It was a significantly oversubscribed transaction with both new and existing investors clamouring to get the stock.And who can blame them?The group, which floated in March 2019, has offices and associations across the globe.It recorded £338.1m of revenues and declared an adjusted pre-tax profit of £34.2m during the year to end April. This was worth 7.4p per share in earnings and covered a 4.5p dividend.For this current year, analysts Mike Allen and Rachel Birkett at its brokers Zeus Capital estimate £364m revenues, £41.1m profits, 9.9p earnings and a 5.9p dividend which making that 102p price look very attractive.That is obviously why the shares have improved subsequently and now sit at 112p.Do I see them going even higher? Oh yes indeed. I think they will be heading up to 150p and beyond in due course.DWF is undervalued relative to its sector and offering good strong upside potential.

[tole] 26/7/2021 20:39

https://masterinvestor.co.uk/equities/small-cap-round-up-featuring-dwf-premier-foods-foxtons-and-more/DWF Group (LON:DWF) – strongest organic growth rate in the sectorAnalysts Mike Allen and Rachel Birkett, at brokers Zeus Capital, were impressed by the global legal services group's management of streamlining its divisions and controlling costs.They strongly endorse the strategic progress made to date, which leaves the group well placed to deliver profitable and cash generative growth.Meanwhile, over at Liberum Capital, their analyst James Allen switched his view on the group's shares from 'hold' to 'buy' and at the same time increased his price objective to 135p from 105p previously.They closed the week at 106p and are obviously capable of making another attempt on their 2020 peak of 142.5p in due course.

[tole] 23/7/2021 06:31

Liberum upgrades DWFLiberum has upgraded legal group DWF (DWF) after management addressed the broker's 'bear points'.Analyst James Allen upgraded his recommendation from 'hold' to 'buy' and increased his target price from 105p to 135p on the stock, which closed up 2.4%, or 2.5p, at 108p on Thursday.Full year results came in in-line with expectations, with the profit before tax margin more than doubling, but from a low base. This led Allen to upgrade his 'conservative' 2022 and 2023 estimates.'The market appears to be optimistic about general insurance business volumes, which is positive for DWF due to its large exposure to insurance,' he said.'Management has now addressed the majority of our bear points since we initiated, which gives us faith in the equity story going forward.'