Blimey that was a larger sell of over 500k today. Hopefully its now in the price. |
Hopefully that was the bottom in, surprised at the fast and sustained fall (maybe a forced seller?) and i am now reinvested here for the first time in a long while. I couldn’t justify the valuation for the past 12 months but at under £1.10 i am happy to be back as one to tuck away. Also bought back into BEG at £1.15 which has been range bound for as long as FRP has been overvalued! |
what i know for sure is that the UK stock market has been looking miserable over the last few months. That will likely lead to more insolvencies if anything? |
Still falling here. I wonder where the bottom will be / |
It appears that large volume increases earlier in the month are down to share options granted to employees on IPO being exercised and then tranches being settled to fund tax bills. |
New UK insolvency data released on Tuesday by the UK Insolvency Service. Feb 23 v Feb 22: Liquidations (SMEs - Begbies market) up 13%, Administrations (Larger companies - FRP’s market) down 1%.
FRP are also facing major competition from the Big 4 accounting firms who have spun off their insolvency arms, so they are no longer conflicted to do the big Administrations work.
DYOR of course but this has nuances. |
Aye. I've been watching this over the past few weeks. Just in for 10k worth first thing at 116 so happy with that. |
Joined him with a few this morning. Maybe a big overhang has been cleared, there was big volume at 110 late last week |
Big director purchase |
Still falling. Now below support of 120p . How much further will this fall i wonder ? |
Looks very close to the 120p support now. It has certainly fallen along way this year so far in a sector that was supposed to do well ! |
Retail_Rights: you make a very good point. It reads like they are preparing the groundwork in case they miss their numbers. Same I saw on RBGP who missed targets because M&A Advisory deals didn’t complete. My reading is that the M&A market is now very challenging.
On the LSE board someone pointed out that there have emerged some strong competitors in their core Administrations area that did not exist before their recent IPO. These came from the Big 4 Accountants spinning off their Insolvency operations because there was too much conflict with their Audit/Tax clients. FRP used to have this area sown up because they are not part of a bigger Accounting Group.
The high valuation has always been my concern with this company. PER is around 28 which assumes total perfection - especially in today’s market!
As ever DYOR of course. |
Trading update just released. Looks like the company is becoming busier (perhaps not a surprise given the current economic climate) which is somewhat promising. However, I am concerned about the following statement: "Based on year-to-date trading, the Board expects to be broadly in line with consensus FY 2023 revenue and adjusted EBITDA(2) expectations(1) , with the outcome subject to the timing of completion of several FRP Corporate Finance transactions around the year end." The indication of being broadly in line with expectations is of course good, but the final sentence means results are highly dependent on some events which may be outside of the company's control. I would advise caution here as to a potential profit warning if timing doesn't work out on some transactions. |
 FRP Advisory Group plc, a leading national specialist business advisory firm, issued a trading update for the HY ended 31 October 2022 this morning. The Group's performance remained strong during the first half, with continued growth in revenues and profits. The Group expects to report revenue for H1 2023 of £49.4m, up 10% on the prior year and underlying adjusted EBITDA of £11.6m, up 5% on the prior year. Both are in line with the Board's expectations to date. The business is growing steadily and remains very profitable for the Professional & Commercial Services sector. The balance sheet is robust with negative net debt, the share price also has positive momentum. Valuation is the main potential cloud for the investment case, forward PE ratio at 20.9x looks unhelpful for the sector. But the share has only traded to a trailing 12-month PE low of 19.2x since listing in 2022, a more enticing PE valuation may not be on offer anytime soon. BUY...
...from WealthOracle
hxxps://wealthoracle.co.uk/detailed-result-full/FRP/614 |
A sad day for Rugby Union today with Wasps going into Administration, but it looks like being very healthy from a fee-income angle for FRP. |
Trending breakout occurred a couple of days ago. AGM news not due until mid-September, so looking like analyst-forecasts of 176 may well be exceeded before that. Unlike BEG and K3C, FRP is making new highs, so no longer-term resistance levels to cause short-term problems. Prior trading-range depth would suggest 185 as a target-price for this trend. |
Looking at corporate distress in the UK at the moment it’s hard to see analyst forecasts not being exceeded for either company. From an insolvency-angle it would seem that FRP are picking up much more profitable, complex work that would traditionally have gone to the Big Four firms, unlike BEG which does lower-value/high-volume liquidation/burials. |
At 18x forward PE (rather than say BEG on about 14) there's a high amount of expectation of over performance versus forecast here. However with a people / capacity driven business model I guess there's a limit on how much you can take on relative to a fixed cost base? Which is a reason why BEG's 14x looks a bit more appropriate. |
Also manolette is a good one with plenty to run |
I’ve reluctantly taken profits here at £1.58 simply on valuation grounds. I reckon this is around 20x forward earnings so back on the watchlist and i’ve added to BEG which is 14x earnings and a 2.5% DY. Will be back here on any minor pullbacks. K3 is getting close to bargain levels too. |
Well worth signing up with insolvency-insider.co.uk for market statistics relating to insolvency appointments... especially if you hold FRP, BEG or K3C. FRP currently moving well ahead of competition in terms of Administration appointments. |
Had these on my watch list for a while. A good investment for hard times ahead is useful to have.
Surprised to get some under the 140p equity issue / large owner sale price, so couldn't resist, in at 138.
Will hold for next few years until I see glimmers of sunlight through these dark clouds!! |
Turnover up 21%, of which 11% is organic.
Personnel costs up 26.2% and other operating costs up 32.7%
Net result is PBT down 9%
The text presents this as if everything is going well, with attempt to explain the problems.
Shareholders might just expect management to show some interest in shareholder returns. |
Topping up time imo |
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