Frp Advisory Share Discussion Threads

[shauney2] 02/9/2015 19:56

Nice late surge in the share price before tomorrows interims.

Looking forward to seeing how far ahead they are and if the Colemans acquisition
is cutting the mustard.

[speedsgh] 27/8/2015 12:04

Most recent Equity Development note...

A longer arm of the law -

[imranawan] 27/8/2015 11:54

mo7229 - I think Equity Development have published a couple of research notes about the company that provide good background information about the business and the financials. One thing to keep in mind is that FRP made a legal acquisition last year and another this year. This means that legal services going forward will make up a greater proportion of the overall company which may result in the company being re-rated - as based on a PER basis its still pretty low.

[mo7229] 27/8/2015 11:39

Hi guys, looking to open a position here. Fantastic value and dividend, not to mention the beautiful chart of repeating highs and plateaus.

Any useful info for me would be great to bear in mind whilst doing my research.

GLA

[hannahh] 26/8/2015 09:21

Hi,

If you want to listen to Chris Moat, CEO, and John Gittins, Finance Director discuss Fairpoint’s half year results and ask them questions please register for the Webinar which is being held on Friday 4th September at 10.15.

The presentation will last approximately 20 mins and there will be an opportunity for Q&A at the end.

To register please go to:

Thanks,
The Equity Development Team

[brownie69] 07/8/2015 09:58

Ive dipped a toe in here recently.

Hence delighted with the trading update and acquisition terms.

Agree with the forward PE of 10 and thus my expectation is to see this hit 185p.

However this is a sector ripe for consolidation and thus I'm seeing this as long term hold.

[capercaillie] 07/8/2015 07:31

Been on a moonshot this week. Lots of recent press recommendations probably helped.

[ramridge] 04/8/2015 15:44

If you look at their past three deals, Simpson Millar, Debt Line and Fosters, they had similar self-funding earn-out payments.
What I like is a management which has a track record for constructing good financial deals and integrating the acquisitions efficiently.
That together with low PE, high div yield and sound balance sheet makes it a great investment.
Regards, Ram

[imranawan] 04/8/2015 15:25

Hi Paul

I also have a long position in FRP, and agree 200p looks like a reasonable target in the short to medium term. I also bought in for the divi, which I think is well covered and can be increased over time. I added yesterday am, and will look to buy more on any further dips. In the current market its one of the few value shares at a decent rating with a great yield.

I also think if they can successfully make the transition to legal servs. with the two recent acquisitions the shares have the potential to re-rate. Risk/reward at the present levels is favourable. I also invested in Gateley, which recently IPOd. The share price has largely been flat, but I'll be interested to see their first set of results, as it should be a good barometer of the market in relation to Fairpoint.

Regards,
Imran.

[paulypilot] 04/8/2015 13:33

Hi,

I agree with the above. To my mind a PER of say 10 times is justified, so for 20p EPS (next year) that arrives at a share price of 200p, which is my personal target price for this share.

Am not saying I would sell at 200p, just that in my opinion it's a realistic target.

Personally I bought in at an average price of 122p, and locked in a near-6% divi yield, so it's an attractive share to keep for the divis.

Good growth from acquisitions, and net debt is still fairly modest, even after the latest acquisition.
I particularly like the way the deal was structured, with self-funding earn outs. Good, because it de-risks things for us.

Regards, Paul.

[penpont] 04/8/2015 12:27

S T has updated and kept 190 target. Quotes Shore Capital forecasts similar to those of Equity Dev.

[ramridge] 04/8/2015 11:30

Watch out for Simon T's update by noon today; 1/2 hour from now.

[cwa1] 04/8/2015 08:51

Thanks for that comment penpont.

[penpont] 03/8/2015 21:49

Very positive note from Equity Dev:



'Today Fairpoint has announced the immediately earnings enhancing acquisition of the Colemans-CTTS legal services business for an initial payment of £9m, with further contingent payments of up to £7m, and also published a positive trading update on the first half ahead of the interim results next month.

The acquisition is a further major step on the way towards Fairpoint's target of creating a top 5 legal services business through acquisitions and organic growth, and follows the successful acquisitions of Simpson Millar in June 2014, and of the much smaller Fosters, the following month. Including today's Colemans acquisition, on a pro forma basis, legal services is now expected to represent 62% of the Group's revenues going forward.

Fairpoint has also released a very strong H1 trading update, saying that "overall group trading for the first half of 2015 has been materially ahead of the same period last year, and is in line with the Board's expectations". Fairpoint will release its Interims on 3 September.

With Colemans included for just four and a half months in Fairpoint's current financial year, we upgrade our PBT forecast by £0.5m to £10.5m, and increase our EPS forecast from 18p to 18.5p. For 2016, with a full year's benefit from Colemans, our EPS forecast rises by 7% to 20p.

Gateleys, the law firm which recently IPO'd on AIM is on a prospective P/E (to April 2016) of 10.7x. On our increased EPS forecast (to December 2016) of 20p, Fairpoint is on a prospective P/E of just 6.75x, (and yields 5%), and continues to look extremely modestly rated.'

[cwa1] 03/8/2015 07:25

And acquisition detail:-

[cwa1] 03/8/2015 07:23

Update:-

03 August 2015

3 August 2015

Fairpoint Group plc

Trading update and

Notice of Half Year Results

Fairpoint Group plc ("Fairpoint" or "the Group"), one of the UK's leading providers of consumer professional services, today issues a trading update on the Group's performance for the six months ended 30 June 2015, ahead of announcing its half year results on Thursday, 3 September 2015.

Half year trading update

Overall Group trading for the first half of 2015 has been materially ahead of the same period last year and is in line with the Board's expectations. This reflects a strong contribution from the Group's consumer legal services business, which was established by acquisition at the end of the first half last year. Segmental updates are as follows:

-- Legal Services: Simpson Millar LLP, the Group's consumer legal services business, has performed well compared to its prior year (when it was not part of the Group) and is now the Group's largest single source of income. We are also pleased to announce separately today substantial progress on our objective of creating a top 5 UK consumer legal services business, with the acquisition of the trade and assets of Colemans-CTTS LLP, CT Support Services Limited and the entire ordinary share capital of Holiday TravelWatch Limited (together referred to as "Colemans"). Colemans provides us with a class leading platform for the provision of volume legal services and in its last financial year ended 30 April 2015 (unaudited) delivered revenues of GBP19m. On a pro-forma basis Legal Services is now expected to generate the majority of income to the Group.

For full details of the Acquistion, please click on the link below;



-- IVA: As expected, market conditions in the Group's debt solutions market remain challenging, with the volume of new IVA solutions in England and Wales falling by 23.5% in the first quarter of 2015 compared to the same period last year (Source: The Insolvency Service); the Group therefore continues to focus on delivering good margins, cash generation and not writing uneconomic business.

-- DMP: Revenues are broadly flat when compared to the same period last year. This largely reflects the absence of acquisition activity in the current year as the Group continues to favour deployment of capital towards developing the Legal Services business, given the significant opportunities available and as the evolution of the DMP market remains unclear.

-- Claims: Our claims management activities are broadly in line with the same period last year, with good growth from our in house claims management services offset by a reduction in IVA related claims activity.

Group net debt as at 30 June 2015 was GBP5.2m (31 December 2014: GBP7.6m), reflecting strong cash generation from operating activities.

Notice of Half year results

The Group will release its half year results for the six months ended 30 June 2015 on 3 September 2015.

Chris Moat, Fairpoint's Chief Executive said:

"We continue to gather strong momentum in our agenda of reshaping the Group towards a broader consumer professional services organisation, whilst maintaining a solid cash generative performance in debt solutions. The acquisition of Colemans provides a substantial stimulus to this objective and a platform for further progress."

[masurenguy] 21/7/2015 15:07

Took an initial position here today @134p, primarily on a yield basis, within my equity ISA portfolio.

[jeff h] 17/7/2015 11:53

Mark Slater a fan:-

[jeff h] 02/7/2015 13:32

It was excellent to spend several hours in the company of CEO Chris Moat at the Equity Development arranged Manchester lunch.

The future emphasis for the company looks to be on the Legal Services side of the business.

[speedsgh] 02/7/2015 09:41

Three cheap 'under-the-radar' income shares -

Gervais Williams, who works for Miton, the fund manager, has found three ‘too cheap to ignore’ shares outside the FTSE 100 index.

The shares Mr Williams has tipped are Fairpoint, the debt management business, Fulcrum Utility, which installs gas and electricity supplies to housing estates, and International Greetings, the maker of wrapping paper and cards...

[speedsgh] 30/6/2015 11:02

FRP feature on a list of 8 bargain shares resulting from a Sharescope value/growth screen in this Telegraph article...

[sharesoc] 02/6/2015 11:49

We are holding one of our popular Investor Masterclasses in Manchester so local investors and shareholders in FRP may be interested in attending as FRP is based nearby our venue...

[darryn1] 31/5/2015 13:55

New board for Gateleys.

[jeff h] 31/5/2015 13:18

Yes drifting Snadgey though it has recently gone 4.10p xd.

[snadgey] 31/5/2015 09:28

Thanks Jeff. Have added Gateley to my watch list to keep an eye. FRP doing its usual drift back until next set of news?