Frp Advisory Share Discussion Threads

[sunshine today] 02/5/2020 10:25

Thank you Devonking. The economic situation is going from bad to absolutely dire. Not just in the U.K. but everywhere.Its not going away anytime soon.Four articles in today’s Financial Times., offices to stay shut for months. Markets are out of step with economic reality SME”s to run out of cash within weeks, 7% of USA mortgages not being paid.
That’s just for starters.

[devonking] 01/5/2020 21:17

FRP are gorging themselves on eateries. A stop/start, semi-functional economy is on order. 2nd tranche for me when the opportunity arises. Good weekend to you all, and especially Sunshine for your valued commentary.

[sunshine today] 01/5/2020 15:56

Friday 1st May 2020 12:45 BST
Sky News has learnt that Prezzo has appointed FRP Advisory, which is currently acting as administrator to Carluccio's, to explore the implications of the COVID-19 crisis for its balance sheet.

The move comes less than two years after the chain axed dozens of outlets through a financial restructuring that included a debt-for-equity swap.

It now trades from 180 restaurants, all of which the company says were profitable before the coronavirus outbreak.

A stake in Prezzo is still owned by TPG, the American buyout giant, with a number of other funds also holding shares in it.

Most of the chain's 3,000 employees have been furloughed under the Coronavirus Job Retention Scheme.

The company is run by Karen Jones, its executive chairman, who is one of the best-known figures in Britain's hospitality industry.

A Prezzo spokeswoman said: "We entered this entirely unexpected closure after a period of strong trading, which has given us the impetus and momentum to be able to drive through to reopening.

"Given the continuing uncertainty around the reopening of hospitality in the UK, appointing advisers is a sensible precautionary measure to ensure we have best advice available to us as we respond to this pandemic and look forward to the important period of reopening."

Prezzo's appointment of FRP comes as restaurant owners across the UK urge the government not to end the lockdown on the industry too quickly, or risk triggering a wave of permanent closures.

[sunshine today] 01/5/2020 10:39

Was that trade of 13557 over the offer price .?

[discodave4] 30/4/2020 18:47

Thanks neg Agree at 80 no brainer. Take it you got in at the IPO.Was hoping for under £1 would do me, the trailing 12m PE is about 12 so first listed results will hopefully get a rerating to 15 or so.All the best

[sunshine today] 30/4/2020 13:55

Savage for those who are now out of a job.

The stores are among 92 branches around the country that are being shut 'indefinitely' after the business went into administration.
A deal's been struck today (Thursday 20th April) for restructuring experts Hilco Capital to buy out the Oasis and Warehouse brands.
Dorchester has an Oasis shop on South Street. Weymouth has a Warehouse concession located in Debenhams.
But while that will see all of the fashion retailer's stock being snapped up, it will mean all of their High Street stores closing, with more than 1,800 people losing their jobs.

[sunshine today] 30/4/2020 11:59

European business and consumer confidence plummeted at a record rate in April due to the coronavirus crisis, according to the EU’s main economic sentiment indicator which has fallen close to the all-time lows of the financial crash a decade ago, the Financial Times reported. After recording “an exceptionally strong fall in confidence among consumers and in all the business sectors” the European Commission said its overall economic sentiment indicator fell by 28.8 points to 65.8 across the EU in April. The fall was likely to have been even more severe than the data suggested, the Commission said, because its survey could not be carried out in Italy, which imposed a severe lockdown on its inhabitants after suffering the heaviest death toll because of coronavirus. The figures came as the German government announced that it expected its economy to shrink 6.3 per cent this year, although it forecasts a rebound of 5.2 per cent next year. Private household consumption will fall by 7.4 per cent this year while exports will drop 11.6 per cent, according to the figures. Read more

[sunshine today] 30/4/2020 11:58

BBC Lunchtime


Let's take a deeper look at the economic impact of this pandemic.

According to an official preliminary estimate, the economies of the European Union contracted by 3.5% in the first three months of this year.

For context, that's the steepest decline in decades and is even worse than in the aftermath of the global financial crash in 2008.

The situation is even starker in the 19 countries that use the euro as their common currency - they've seen their economies shrink by 3.8%.

Looking at specific countries, France has registered its worst economic contraction since World War Two, with output falling by 5.8% in the first quarter. Spain has also seen its economy shrink by more than 5%.

This is all major indication of the huge economic toll this virus is taking on most European nations.

[sunshine today] 30/4/2020 11:50

Yes but each extra day is a killer for tens of thousands of companies and individuals. Just take a walk down any high street or industrial estate.

[eeza] 30/4/2020 11:43

That's only 1 month away.

[sunshine today] 30/4/2020 11:41

Talk of lockdown till June 2020. That would be crippling for the economy.Boris apparently on TV tonight.

[sunshine today] 30/4/2020 10:59

I am in the insolvency growth camp. We are in the very early stages of a recession all the government action is about delay and debt.The stock market is out of kilter with what you see in the real world.Insolvency practitioners are going to be flat out.The tap of government cash is not going to go on forever.How do you get economic growth when taxes go up. How do you stop unemployment going through the roof. It’s just not the U.K. it’s everywhere. Brexit will also make its mark.

[neg] 30/4/2020 10:40

Hi Disco
It's very difficult to say as there is very little financial information to go on. FRP is clearly a quality business and looks like it will have substantial business going forward for a number of years. The market is looking ahead and if my eps figure for this year is correct say 7.25 (ending April 2021) then the company trades on a pe of 15.5. At this stage it is all guesswork, but at 80p these were a steal.

[sunshine today] 30/4/2020 10:31

The last 1/4 insolvency numbers are out, they fell slightly. This may be due to the court disruption towards the end of March.The expectation must be that they roll over into this quarter. Insolvency practitioners have been in extreme demand for advice, that is chargeable as all parties try and prevent bankruptcies.That has to be a good result for all.

[discodave4] 30/4/2020 10:30

Hi negYou said "but think it is fairly valued at present".Do think a re-rating would be required for me to agree but would be interested to know what you think a decent entry is, no probs if prefer not to say. I have a figure in mind but longs may be offended!.Thanks

[eeza] 30/4/2020 10:23

75k dumped @ 113p at 0843 doing the damage.

[discodave4] 29/4/2020 21:15

Hi neg Thanks for your earlier posting and being open about valuation here, I don't know as expected a rerating will come soon enough (?).

[eeza] 29/4/2020 19:35

Guardian Business.

"The FTSE 100, one gauge of the UK stock market, ended the day up 156 points at 6,115 – its highest close since March 6. The index has gained more than 1,000 points from its trough of 4,993 on March 23, meaning the FTSE officially moved into a bull market – a rise of 20% or more."

[sunshine today] 29/4/2020 19:18

MANO is not an insolvency practitioner. They basically buy unpaid revenues that are due to the company that went bust. They take on the risk of getting cash back on a shared basis. FRM May do deals with them that is beneficial to the creditors of failed companies.They, MOMO can pick and choose to buy the debt or spread the risk with the insolvency practitioner.I can see they have done well and are growing very fast. The one thing that slightly puts me off is the risk. The risk is that by the time they have gone to court or tried to settle the owed monies have been spent,or lost through trading activities.

[jeanesy] 29/4/2020 19:05

i had not heard of MANO . Has anyone else and has anyone invested ?

[eeza] 29/4/2020 18:20

Interesting RNS at JDW regarding placing, but gives lots of details concerning how easing of Covid restrictions are expected to impact.

[moormoney] 29/4/2020 17:49

Good day today and strong finish!

[sunshine today] 29/4/2020 16:15

Total agreement on that, I would go so far as to say, most businesses will see increased costs and lower productivity. None of that helps them survive.

[eeza] 29/4/2020 15:21

Restaurants, pubs, theatres, airlines etc aren't viable at 50% of their capacity.

[sunshine today] 29/4/2020 15:12

A 3 to 5 year hold. The market is buying the recovery, they think it’s all over.Its not even started. The implications will filter through and that will see us in a recession in quick order.If we get rounds 2 or 3 of covid then the outlook goes to red and sticks. I read today restaurants don’t even want to open unless they can potentially fill every seat.For those seeking a balanced portfolio FRP might want be be a good 3% of your total holdings.