The tape seems to indicate there is a disciplined seller at the moment. |
 adipsia, M&A corporate finance may well at long last become super profitable? I do not happen to agree but whatever, these bolt-ons are often smart as you say, and often a win-win for both parties. Particularly if some of the partners are approaching retirement, or have other ambitions, both usually being the rational for these transactions.
All the ducks can often line up in a row by combining with an AIM listed company like FRP. BEG too, but they have tight shareholdings. They also have a great reputation, although with a lack of scale in other areas or wish to change.
What else? No establishment costs for either parties, and CGT and IHT largely unaffected. The inter-group cross selling opportunities always trumpeted in these situations rarely materialise. However PLC recognition and introductions from HMRC and banks, and probably from IP’s and lawyers too, seem certain to help both FRP and their recent amalgamations.
The profitable geographical opportunities available to FRP are inevitably limited. Eg Cyprus Yes, Southwest England No. It is a strict policy based on compatible values and integrity, on the deals available. Nowt else. |
Another interesting and seemingly smart acquisition announced today. A corporate valuations business that should add around £2.7m to sales and £1.1m to EBITDA. Most importantly it seems a perfect fit for the Corporate Finance (M&A) side of the business. |
CVLs increased by 9% from 2022, which is the highest annual number since 1960. CVLs accounted for 82% of all company insolvencies in 2023.
Main messages for England and Wales. After seasonal adjustment, the number of registered company insolvencies in England and Wales in June 2024 was 2,361, 16% higher than in May 2024 (2,040) and 17% higher than the same month in the previous year (2,016 in June 2023).19 Jul 2024 |
 Interesting research published by Berenberg today concerning both FRP and BEG together with target price updates:
The German bank stated FRP Advisory, the largest UK appointment taker for administrations, offers exposure to what it thinks will play out as accelerated structural growth. Berenberg raised its target price on the 'buy' rated stock from 200.0p to 220.0p.
As far as Begbies Traynor was concerned, the UK's largest appointment taker for liquidations has demonstrated "a strong post-pandemic rebound", now stabilising at elevated levels over the last two-and-a-half years. However, Begbies shares have "materially de-rated" since the turn of the year, currently standing at historically low multiples despite a positive recent trading outlook, indicating growth across all service lines.
"With solid forecast organic EPS growth, alongside M&A optionality required to meet a targeted £200.0m of revenue, we view current pricing as anomalous. We update our price target to 150.0p (from 170.0p) today," said Berenberg. |
Interesting research published by Berenberg today concerning both FRP and BEG together with target price updates:
The German bank stated FRP Advisory, the largest UK appointment taker for administrations, offers exposure to what it thinks will play out as accelerated structural growth. Berenberg raised its target price on the 'buy' rated stock from 200.0p to 220.0p.
As far as Begbies Traynor was concerned, the UK's largest appointment taker for liquidations has demonstrated "a strong post-pandemic rebound", now stabilising at elevated levels over the last two-and-a-half years. However, Begbies shares have "materially de-rated" since the turn of the year, currently standing at historically low multiples despite a positive recent trading outlook, indicating growth across all service lines.
"With solid forecast organic EPS growth, alongside M&A optionality required to meet a targeted £200.0m of revenue, we view current pricing as anomalous. We update our price target to 150.0p (from 170.0p) today," said Berenberg. |
A trading range breakout appears to be in progress. Likely target price around 170p |
hxxps://nltimes.nl/2024/08/12/dutch-bankruptcies-still-rise-upward-trend-two-years. |
H Parkinson Haulage entered administration on 5 August
“Competition in the haulage industry remains fierce especially at this time with the supply chain disruption, driver availability and inflation,” it said.
“The increase in inflation has far-reaching effects to all costs within the business pushing the extra costs to the customers where possible but continually threatening profit margins.”
FRP had not responded as we went to press. |
Meanwhile in the US. Piper Sandler’s chief global economist, Nancy Lazar, argued that the recent rise in the unemployment rate to 4.3%, might actually be underestimating the true weakness of the labor market.
Lazar points to several other labor market indicators, such as the increase in continuing jobless claims, a pessimistic consumer survey from the New York Fed and the declining quit rate in the JOLTS report, all of which suggest a weaker job market than the official unemployment rate indicates.
“The quit rate ... points to 5%+ unemployment — it always goes down in a recession,” Lazar said in a note to investors. |
Tokyo, Aug. 8 (Jiji Press)--The number of corporate bankruptcies involving liabilities of at least 10 million yen in Japan jumped 25.7 pct from a year earlier to 953 in July, up for the 28th consecutive month, Tokyo Shoko Research Ltd. said Thursday.
Bankruptcies increased among small and midsize companies as they struggled to reflect higher costs in prices amid inflation.
Liabilities left by failed companies totaled 781.2 billion yen, up about 4.8-fold. The total was pushed up by the collapse of MSJ Asset Management Co., formerly Mitsubishi Aircraft Corp., with liabilities of 641.3 billion yen.
The service sector saw 310 business failures, up 18.3 pct and hitting a record high. Many of the failed companies were restaurant operators and medical and welfare service providers.
The number of inflation-linked bankruptcies jumped 18.9 pct to 69, with many of them in the construction and manufacturing industries. |
China’s manufacturers are going broke
Overcapacity is leading to soaring bankruptcies
Most news on China’s manufacturers is bad news for rivals around the world. Foreign governments fear their domestic champions will be pummelled by low-cost Chinese rivals. But on August 5th the world got a small reminder that China’s producers face big problems of their own. Hengchi, an electric-vehicle (EV) maker owned by Evergrande, a failed property developer, told investors that two of its subsidiaries had been forced into bankruptcy. The group originally aimed to sell 1m EVs a year by 2025; amid feverish competition it sold just 1,389 last year.
It's a familiar repeated news story from around the world yet here and in the US they'd have us believe it's all going tickidy boo. |
We're up 14% in a month, not to shabby. |
Has the day finally arrived for government clawing back some of the £79bn government backed business loans and will she crash the market? |
Investec values FRP’s shares at 13 times earnings for 2025. The group’s high margins and compounded annual revenue growth rate of 15 per cent over the last 5 years deserves a second look from investors. Buy. |
hxxps://citywire.com/funds-insider/news/expert-view-informa-smith-and-nephew-mj-gleeson-frp-mitie/
Liberum: FRP is oversold
Shares in corporate advisory group FRP (FRP) have fallen too far after strong full-year results, says Liberum.
Analyst James Allen retained his ‘buy’ recommendation and target price of 205p on the stock, which softened 0.8% to 129.5p on Wednesday, extending losses to 3.4% year to date.
The largely preannounced full-year 2024 results are ‘very strong and in line with expectations’, with news that it had acquired Lexington Corporate Finance, which ‘makes sense from a strategic rationale perspective and has been acquired at an attractive multiple’.
Allen left full-year 2025 estimates unchanged but said that the first quarter was a ‘good start’.
‘Activity levels remain high at FRP, earnings momentum is back on a positive trajectory, but the shares have derated materially, leaving the shares looking very oversold,’ he explained. |
De rigueur these days for the share price to fall no matter what the results it would seem. Anyway any more weakness this week it's on my add list. |
Superb results, good outlook and a growing cash pile to aid further growth. |
Lexington Corporate Finance looks like a quality acquisition. The business is run by an ex-PwC Partner who was head of corporate finance for the SW. Seems like a very good fit for bolstering mid-market activity in South Wales. Looking forward to presentation of full year results later this week. |
The number of insolvency-related activities in the North West reached a 14-month high in May, according to new research from R3, the insolvency and restructuring trade body.
R3’s analysis of data provided by Creditsafe shows there were 452 cases of insolvency-related activity, which includes liquidator appointments, administrator appointments and creditors’ meetings, in the North West in May.
These figures were the highest since March 2023, when 476 cases were recorded.
Insolvency-related activity rose by 15% in May 2024, when compared with the previous month and rose by 16.5% compared with May 2023’s total of 388.
Fran Henshaw, Chair of R3 in the North West and also Head of Corporate Recovery and Insolvency at Beever and Struthers, said: “The monthly and yearly rises in insolvency-related activity in the North West reflect the challenging trading climate that many businesses are still experiencing post-pandemic, and the effects of the cost-of-living crisis.
“The cost of rent and raw materials are still key pressure points for many business owners, while demand to increase staff wages has left many businesses struggling to grow, pay their bills, or to pay off existing debt.”
The North West saw the second highest monthly total of insolvency-related activities of all the UK regions and nations in May, surpassed only by Greater London which recorded 607 cases. |
What's going on here? Especially considering the upbeat update a few weeks ago |
Interesting to see market reports re: Body Shop Administration.This is clearly going to be a very profitable deal for FRP with fees earned in terms of restructuring AND locating a purchaser.This is the kind of deal that separates FRP from BEG in terms of PE quality. |
Lapped up, the company is performing very strongly, the management shareholders have sensibly lightened their very substantial holdings before labour jack up cgt |
In fact it might be interesting if there's some TR-1's issued, given the low current II involvement here. |
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