Frp Advisory Share Discussion Threads

[daneswooddynamo] 05/5/2020 16:11

As usual it depends on your time frame. Beg spent much of last year trading between 80-90p and entered 2020 at 94p. On that basis, given what has transpired over the last 2 months, the current price of 115p looks entirely sensible given the revised prospects

[sunshine today] 05/5/2020 15:23

Some headlines today show what’s unfortunately on the way. GE Aviation to cut workforce by up to 13,000 jobs, : 25%, BA,28%,Car dealerships 25%, virgin 3,000. It looks likely 25% of staff are about to be dumped across a large range of industries and services. Some sectors are still going to be on standstill. It has to be remembered this might only be the first phase of cuts.

[sunshine today] 05/5/2020 14:27

Traders come and go and often as you say, the good news is often priced in. No one today is buying into last years trading. The reason investors are purchasing stock is future projected profitability.BEG may be worth multiples of today’s price if insolvency rates double, triple or even more over the next 3 years. If we enter a long recession that’s a given. After our government has borrowed to the hilt taxes will have to increase. Plus the world economy may also crash. Just two listed companies give investors access BEG and FRP.

[jeanesy] 05/5/2020 13:49

Normally i would say yes, but the rise has been amazing and unless the results are amazing there will be plenty selling on the news imo.

[jm65] 05/5/2020 13:28

Always a difficult choice ahead of results :-)

[jeanesy] 05/5/2020 13:27

if i were in BEG i would be selling ahead of the results thursday. They have had an amazing run and i believe the price has got ahead of itself .

[andywillz] 05/5/2020 12:40

I am happy to see this comapny trading on the LSE. I previously worked in the PPI sector for a large bank and we often received requests for re-investigation from this company. if i remember correctly, they had a significant portfolio of clients they were making requests on behalf of. Would be interesting to know what kind of profits this brought in, considering they took a lovely 30% slice of the total refund, and banks set aside billions to cover these remediation projects.

Will be watching this one closely (but cautiously) given the current economy. i suspect they will do quite well in the short-medium term given the large number of companies which will need support.

[sunshine today] 05/5/2020 12:31

53% of workers who were producing goods and services , exc the NHS are currently on the government payroll. Sometime soon they will be back at work or down the road. Companies employing them will be making very hard decisions. For companies it’s far easier to sack staff at this junction rather than bring them back into the workplace. Unfortunately unemployment is without doubt going to jump.A good many companies will just run down stock and close for good.

[sunshine today] 05/5/2020 10:22

The sector would go ballistic if just 36,000 companies went down in 2020. Government money will eventually dry up. The recovery might be slow or even not happen at all. The banks will be desperate to call in bad loans and retrieve some cash to boost their balance sheets.I recon stacks of businesses are calling it a day right now, and will not want yet more debt and sleepless nights. On personal finance 50M payments have been missed so far by the public on rent, utilities cars mortgages and so on.

[sunshine today] 05/5/2020 10:14

BEG has been tipped by everyone and is on the re rate. My worry has always been the 65% 35% split between insolvency and other businesses that might well suffer over the next few years. I have also failed to find any high profile Administrations they have been appointed to process in the last 10 weeks. That is not to say they are expensive because they will be rushed off their feet if anywhere near one million companies go to the wall as predicted by some. Last year by example 18,600 did.

[jm65] 05/5/2020 10:08

Anyone know when FRP are due to report/update?

[jm65] 05/5/2020 10:07

BEG doing well today.

[sunshine today] 05/5/2020 10:05

He explained that insolvency practitioners are flat out giving advice, with bankruptcies to follow for some. This is a five year cycle and we are only in the first 3 months.

[sunshine today] 05/5/2020 08:50

Yep you could be correct on your above assumption. I have always said it’s a 3 to 5 year view on these insolvency practitioners. What I have noticed that stands out a mile is the big four don’t appear to be picking up the the large profitable Administrations. FRP has been awarded far more than a one sixth share of large restaurants and retailers. I would go on to say they have been awarded a good half.

Bonmarche

Carluccio”s

Comet

Debenhams

Monsoon Accessorize

Koovs

Patisserie Valerie

YO!

Prezzo


These, plus a large amount of advisory puts FRP in a sweet spot.

[jeanesy] 04/5/2020 19:37

strange price action here today with BEG still on the move. For what it is worth i think that come results today on thursday BEG will have a sell on the news day as i dont expect the results to be as good as people are expecting. The insolvencies haven't really happened yet and i think people will not be overwhelmed with the results imo.

[sunshine today] 04/5/2020 18:31

What can I use the loan for?

The business must confirm to the lender that the loan will only be used to provide an economic benefit to the business, for example providing working capital, and not for personal purposes.

[sunshine today] 04/5/2020 13:43

The new government £50,000 loan scheme starts today.

Last sentence:

Steven Jones, chief executive of UK Finance, told the BBC the affordability checks would "be lighter", but firms should still "think very carefully about their ability to repay the loan".
Despite the government guarantee, banks are required to first chase firms for money if they do not repay the loan. That means seizing assets and pursuing business owners through the courts.
Mr Jones said: "These are loans, not grants, so if a business is already indebted and taking on further debt, they should think carefully before making an application."
The British Chambers of Commerce has said that about 30% of its members say they cannot afford to take on more debt

[sunshine today] 04/5/2020 11:47

Imagine the chaos if this service industry went bust in their thousands .

[sunshine today] 04/5/2020 11:12

If the 21 cases were sold by BEG they would have gone through at a good price for BEG

Summer 2019
Mr Traynor also thinks he can push back on some of the fees passed on to occasional partner Manolete Partners (MANO), after the litigation funder effectively disclosed its margins through its IPO. The Begbies founder, citing conversations with “deep-pocketed funds” hoping to replicate Manolete’s model, also reckons insolvency financing competition is imminent.

[sunshine today] 04/5/2020 11:08

Manolete will and is speeding up litigation for insolvency practitioners. I would bet it was BEG or FRP that sold the 21 cases to Manolete in January. It was a clever move to bring income into the practitioner ahead of covid, at the same time clearing the decks for the new influx of work.Its extremely good news that this newish company and other new competitors are filling a funding hole on behalf of insolvency practitioners. Cashflow is king for any business and rather than waiting years for your money it’s within weeks. More may follow, depending on the outcomes for creditors and insolvency practitioners if cases or successful.

[sunshine today] 04/5/2020 10:58

JM65, more on the above,

[jm65] 04/5/2020 07:47

Not this Company but kind of tells the story of the current state of affairs...

[discodave4] 02/5/2020 10:39

Yep thanks ST for posting some useful info.My last post was not intended as a deramp in anyway.....either offended a long holder or my stalker is back!.