The issue with BEG is that they are in the high volume but low value insolvency burial market. Volumes will undoubtedly increase for them in the current economic climate but what won’t change is the meat left on the bone of a corpse, and from which they derive their fee-income… hence their diversification into a hotch-potch of other seemingly unrelated business areas.
FRP operate in a totally different territory where they gain income from suffering but solvent businesses through restructuring, refinancing and possibly a sale, and collect fees from each of these areas.
Hopefully that will go some way to explaining the fundamental differences between FRP and BEG and their massive differences when it comes to margins. |
Yep very solid, momentum is building. The rating is not that cheap to start with but should see the shares move higher. Beg looks a bit left behind currently imo |
FRP coning into a sweet spot with the interest rate lag effect. Trading ahead of expectations i now pencil in a conservative adjusted eps of 10.3p for FY24 and with net cash on the balance sheet this is undervalued by historical standards. Operational leverage is a beautiful thing. |
Stunning H1 results released this morning. Fee income up 19%, EBITDA up 34%. Administration numbers up 117% compared to same period last year and Admin market-share up from 13% to 20%. Interesting to see a conservative board state that they will beat consensus forecasts and place an estimate on FY income and profits, presumably down to good WIP forecast ability. Surely a PE re-rating is overdue here ? |
Looking at statistics from Insolvency Insider FRP have had 42 Administration appointments this month alone and have had 231 Administration appointments this year putting them 100 ahead of Begbies. |
Its taken a while but Administrations now back to pre-Covid levels. Should increase from here. |
Bought some more, upgrades coming here |
Interesting acquisition of Wilson Field announced this morning. Although WF are based in Sheffield they have a nationwide online presence at the lower-end of the insolvency market and appear to be a well-run outfit.
The acquisition appears to offer FRP access to smaller, volume-based insolvency cases - particularly through online marketing - and also gives them a presence in South Yorkshire to promote all of their services.
Potentially it also gives them the ability to differentiate their services without losing focus from their core mid-market targets. Looking at fee income and potential EBITDA uplift it looks like a smart acquisition.
Time will tell. |
Just been checking Administration appointments from the Insolvency Insider website and during July and August, FRP booked 49 appointments. Not only does this place them in 1st position, but they have received over twice as many appointments as the 2nd IP Leonard Curtis. Great to see that the Administrations tap seems to be fully on and that the boards conservative predictions are playing out. The stock is looking very cheap at this point. |
props to FRP, they say the report is on their website at 7 and the report is on their website, at least by 7.03. Lots of companies don't bother putting documents up until a few hours after they RNS that they're up. |
Unfortunately PwC. |
Presume they'll be appointed administrators. |
"The retailer has appointed restructuring experts FRP Advisory, which has declined to comment." |
Excellent results on all fronts. Of specific interest is increased market share in the Administrations market, where volumes are already 40% up on the preceding year. Given the state of the UK economy and interest rate challenges to business, it's hard not to see 2024 being a bumper year. |
Actually its tmrw |
Yes latest data shows Administrations are now strongly picking up. Interesting times ahead...with results due later this month I believe. |
Looking at Insolvency Insider Administration appointment data, it appears that FRP remain the largest appointment taker in the UK with increased market-share. |
Or just a reaction to the inflation / int rate decision - yield curve now significantly inverted, UK recession starting to be priced back in. |
No concrete news but this has risen strongly from 108p to 132p in last few days...something interesting could be afoot perhaps ?? |
Looking like a strong breakout from trading range. Next probable resistance around the 132-135 mark, but the fundamentals look very strong. Full year results due to be released on 26 July and it's hard to envisage a less than very positive trading statement given the economic situation. UK administrations are clearly picking up again. |
Could be at the very least a good trading op here (to c£1.40+)? Turns out the potential miss wasn't one after all and Cenkos have upgraded 2024. Price was just under £1.50 before that previous update. |
Looking interesting, can't decide between here and BEG |
L2 moving at last, more buyers then sellers |
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