Frp Advisory Share Discussion Threads

[moormoney] 29/4/2020 14:43

Looking strong today. More investors are looking into this one, a real Buffett share imo!

[neg] 29/4/2020 11:28

DiscoDave, you are absolutely correct on the 50% by 10 partners. I am surprised! However couple of things to bear in mind: 1. They have lock in agreements and 2. It is very difficult to setup a new practice from scratch. FRP was bought from Vantis? (I think 10 years ago when it went insolvent) and they have spent the last 10 years building up the brand name and the business. I like this business, but think it is fairly valued at present.

[sunshine today] 29/4/2020 10:20

The 3rd webinar is now up on the FRP home page. My Take on it. Very professional and interesting.Just like the other two previous ones it’s cash that matters the rest is history.8 weeks of no income is crushing companies, compound by unpaid bills.This is going to create very large headaches down the line. It’s the actions of other companies that have the knock on effect.Most businesses would do well to get paid advice but need to decide pretty quick to hold or Jack.Will those that try and hold the line ultimately fail because the odds have been so stacked against them.? New legislation is on its way that might help some companies.Light administrations need teamwork and i not sure how players that stand to lose everything, want to play the game. Time will tell.

[eeza] 29/4/2020 10:06

Offer moving up today, for a change.

[sunshine today] 29/4/2020 07:26

My take on the above. The next 3 to 5 years is not going to be much fun for U.K. companies. Brexit, covid, debt,and unemployment will see the demise of tens if not hundreds of thousands of businesses. The insolvencies will be split across large medium and small enterprises.Work for all insolvency practitioners will be abundant. That directly benefits FRP partners who can increase their revenues. Time is not wasted touting for work.That reduces costs as well. The market has bounced back but it’s totally at odds with what one sees in the outside world.Huge amounts of optimism in the city is possibly misplaced.FRM is at the right place at the right time.

[discodave4] 28/4/2020 22:07

hi negI got that info from the risks detailed in the admissions doc.Although the rev per average partner for FY20 annualised will be about £1.2m (H1 52 partners and £31.4 turnover, average per partner is £0.6m), that's not the actual per partner, some will contribute more and some less. So you could have 10 partners contributing 50% of their annual revenue (say FY20 £62.8/10/2 = £3.14m each partner). The remaining 42 doing say an average of £0.75m each. That's my take on it, apologies if I've got the wrong end of the stick.

[neg] 28/4/2020 21:32

Disco not sure that's current on reliance on top 10 partners. There are some 50 partners who bring in just over £1million revenue each. Have a look at their listing document on their website.

[discodave4] 28/4/2020 21:09

negThanksCouldn't see from the accounts on Stockopedia where they itemise the costs.My only main concern is their reliance on top 10 partners bring in 50% income. What's stopping them spinning off and doing what FRP do.

[neg] 28/4/2020 21:05

Partner costs I think are 30% basic plus 25% bonus.

[jeanesy] 28/4/2020 20:48

they not only pay dividends but hope to make them quarterly next year is what i thought i had seen. im hoping to bag a few more when the opportunity arises.

[eeza] 28/4/2020 11:16

Offer steadily being pulled down, once more.

[cravencottage] 28/4/2020 11:02

So FRP are paying dividends too?

4.2 DPS?

Cheers

[discodave4] 28/4/2020 10:59

negThanks, assume partner costs are about 40% of Rev/earnings?Is it on the BS liability as "other equity", sorry no accountant.Still looks reasonable and don't Begbies have some property portfolio or something.

[sunshine today] 28/4/2020 10:39

The dividend on 70% of 6P growing fast is a big attraction.

[sunshine today] 28/4/2020 10:37

That sounds about right for the year finishing this week.

[neg] 28/4/2020 10:33

EPS of 10 is based on the figure excluding partner costs. I think eps this year will be around 6 putting it on a pe of 19. Next year eps maybe 7 - 7.5 (a guess).

[sunshine today] 28/4/2020 10:31

Don’t forget the ability to grow dividends at the more or less the same pace.

[sunshine today] 28/4/2020 10:29

FRP is a growth story in the making. Staff numbers are up 30% in the last 12 months. Debt, covid, and Brexit are all playing their part.The second growth element is the loss of Administrations being placed at the foot of the big four. The reasons for that can be found on previous posts. Third and not least,The workforce from partners down are all highly incentivise to grow the company fast particularly over the next 3 years.

[discodave4] 28/4/2020 10:24

negJust checked and they do look like the numbers for 2017, 2018 and 2019.That said even if earnings are flat (which unlikely to be) it's still eps 10p so looks cheap compared to BEG, their operating margins and ROCE smash Begbies.

[sunshine today] 28/4/2020 10:18

That’s how I also understand it.

[neg] 28/4/2020 10:14

Those figures are for 2017 ,18 & 19. They are not forecasts for this current year ending 30 April or next. The pre tax figures are wrong too as they ignore partners' salaries.

[sunshine today] 28/4/2020 10:13

I am a little lost with the above numbers .

The top line are 17, 18, and 19.

When do the dates change to 20 and 21 ?

[discodave4] 28/4/2020 10:03

CravenCottageThanks for that.If read it correctly they forecast a slight fall in profits/earnings for next 12 months which seems unlikely IMO.

[cravencottage] 28/4/2020 09:50

After a little investigation I sourced there forecasts from II Shares

Year End 30- Apr
Actual Forecast
2017 2018 2019 2020 2021
Revenue £m - - - - - 40 52 54 - -
Non Domestic Market £m - -
EBITDA £m - - - - - 21 28 26 - -
EBIT £m - - - - - 20 26 25 - -
Operating Profit £m - - - - - 20 26 25 - -
Norm. Pre-Tax £m - - - - - -1 -2 -2 - -
Reported Pre-Tax £m - - - - - 20 26 24 - -
Norm EPS p - - - - - 8.27 10.97 10.22 - -
Norm EPS Growth % - - - - - - 0.00 0.00 - -
Reported EPS p - - - - - 8.27 10.97 10.22 - -
Reported EPS Growth % - - - - - - 0.33 -0.07 - -
DPS p - - - - - - - - - -
DPS Growth % - - - - - - - - - -
Dividend Yield % - - - - - - - - - -
Div Cover x - - - - - - - - - -
Operating Margin % - - - - - 0.50 0.50 0.45 - -
ROCE % - - - - - 65.05 78.20 71.48 - -
ROE % - - - - - 85.43 100.44 86.84 - -
PER x - - - - - - - 6.74 - -
PEG f - - - - - - - - - -
NAV PS p - - - - - - - - - -
Cash Flow PS p - - - - - 788.20 1223.30 827.30 - -
CAPEX PS p - - - - - -0.24 -0.32 -0.40 - -
Net Borrowings £m - - - - - 1 -5 4 - -
Net Assets £m - - - - - 23 29 27


So @ 10p EPS scheduled for this year and more info pending Trading update in May..

CC