Ince Share Discussion Threads

[acropolis1728] 30/3/2021 13:18

Back test the 68.5 which was a resistance point and would expect that level to become the new support for the next leg up. All looking good. Run up to July from end March has been bullish in past.

[breezer_42] 29/3/2021 08:04

Jim - I’m not stressed over deferred consideration. It’s all contingent so is only paid if the acquisitions perform well. If they perform well, paying it is no big deal. If they don’t perform well, there’s nothing to pay.

Seems like win win to me?

[40 fathoms] 29/3/2021 08:01

Very good news indeed. We see from this that over the last few months they continued to paydown the Barclays debt. The new facility provides them with plenty of liquidity to resume dividends without stressing the cash position and they will still have plenty of cash to cover new hires or bolt on acquisitions. All bodes well for the coming year. As mentioned already on the BB the trading update coming later in April means that there is no bad news to pre announce and they are on track to meet or exceed market guidance.

[jim digriz] 29/3/2021 07:58

There's an RNS, new banking facility, should reduce the stress over the deferred consideration.

[johnhemming] 29/3/2021 07:55

This is subscription based and I don't myself have a subscription although I am considering having one.



This, however, is the research document:

[goldencrosskiss] 18/3/2021 19:17

Some decent sales pushing the price down.

[undervaluedassets] 15/3/2021 08:55

Great communicator on twitter this company.

[djstevens8614] 15/3/2021 07:33

Good info 40 fathoms, RNS has indeed landed this morning. Very glad I finally got in last week, we should see another nice rise today.

[johnhemming] 13/3/2021 08:02

acropolis-> "and then to the old high at around 116p. "
My records have a high in 2019 more like 188. Compared to other listed legal firms INCE and NAH are out of kilter. (I hold both)

[40 fathoms] 13/3/2021 02:09

Looks like we might be getting an RNS on Monday. Maybe along the lines of the maritime cybersecurity transaction.

[undervaluedassets] 11/3/2021 15:00

Just doubled my holding having held since midsummer.

This has flown under the radar for more than a decade and the all-time high (£28.60 odd in 2007) is miles away.

The company has is performed well in lockdown, is not pricey when evaluated using conventional valuation metrics and, has yet to be uncovered/discovered/re-discovered by investors.

The market loves a turnaround story currently; And even after a decent run, we are only in the foothills of a re-rating here.

[djstevens8614] 09/3/2021 18:28

This is definitely going to be the one that got away for me after not being able to push a buy through at 43p only 6 weeks ago!

[acropolis1728] 09/3/2021 18:01

I agree that lawyering can be done easily from home. Ince shed themselves of the Real estate team and have been building ever since. They were so much more open than Knights were about the effect of the pandemic and suffered. But at 17p the share price could go only one way. I started buying in early 20s. The charts suggest that a break out above a trend line i have going back to March last year. Expect a retrace to test support perhaps at around 73p but then nothing until resistance at 91 and then to the old high at around 116p. Historically this does well between now and mid July and i think 116 is a realistic level absent anything drastic in the market generally.

[jim digriz] 09/3/2021 13:43

This is quite a lot of fun and the challenge seems to be keeping resisting selling. If we do turn out to have a turnover of £100m when the dust has settled the current market cap will still look very low relative to peers.

[undervaluedassets] 09/3/2021 13:40

I have a lawyer who is working for me with a big listed firm (Knights) on a personal injury claim and she says they are busier than ever.

Working from home is no impediment to 'lawyering' (not a word I suspect) it would seem.

[mister md] 09/3/2021 13:03

It's been an amazing run for those of us that got into this share in 2020 (and those averaging down last year). The latest sharp rise in shareprice almost seems like some corporate activity perhaps, its outperforming the rest of the market by some margin ?

[cheshire man] 09/3/2021 12:33

Some decent buys going through pushing the share price up

[undervaluedassets] 04/3/2021 09:41

Daveb.

Thank you for that. I knew some of this already. But nice to see it put so succinctly.

[davebowler] 03/3/2021 09:38

Capital Access -
Partners at Ince do not receive a salary: they are members of partnerships or similar legal
entities and are remunerated exclusively through the incentive scheme.
This ‘profit share’ is formulaic, giving partners two main income streams:
• Firstly, they receive a fixed proportion (typically 30%) of the fees generated by work
they’ve carried out themselves for any client of Ince
• Secondly, every client relationship is managed by a partner (their “client care partner”,
or “CCP”), who receives 10% of all billing associated with that client, regardless of who
does the work
• Finally, and separately, Department Heads can receive further limited incentivisation
when they meet defined targets for maintaining gross margins above 45% and lockup
below 120 days for their department.
Importantly for shareholders, a partner is only entitled to their share when the fee to which it
relates has been settled by the client.
In this way partners are incentivised to both work hard to bill (and collect from!) any Ince clients,
and to pass work on, where appropriate, to more junior solicitors in their departments as well
as to refer work to other departments.

[undervaluedassets] 24/2/2021 16:54

Post 576

Just call me the guru.

[davebowler] 23/2/2021 10:26

I managed to buy 30000 shares earlier within the spread via AJ Bell.

[djstevens8614] 23/2/2021 08:37

Thanks John, the buy instruction sat for 6 hours each day until I cancelled it. The fact it was via T212 probably didn't help. I'm now using Halifax Share Dealing so I'm hopeful I'll have more success via them.

[johnhemming] 23/2/2021 08:18

djstevens - On level 2 Ince has 7 market makers making a market in 1,500 to 2,500 so if you were trying to buy the shares (as opposed to some form of derivative) I would be surprised that it was not possible.

[djstevens8614] 23/2/2021 06:25

I'm a bit frustrated that I didn't get in at 43p a month ago. I tried buying a small amount of shares but the buy wouldn't go through after trying for two days so I figured if the buy won't go through then I may have trouble selling also. The pitfalls of AIM I guess.

Are we still thinking this is a buy now? As the above post mentions they seem great value still, especially with the figures they are now producing.

[davebowler] 19/2/2021 09:45

Capital Access -
We believe that Ince will nearly hit £100m of revenue in FY21, and achieve a nearly 9% adjusted EBIT margin, despite everything that’s happened
this year, due to significant measures taken to control costs and tailwinds from lateral hires made in 2019 and 2020, as shown in the table below.
This business has done well to swallow Ince, and with that done management has re-iterated that it has no intentions to undertake large-scale
acquisitions in the foreseeable future. This will afford investors time to see (post-COVID) clean accounts and to really understand what margins
this business is capable of.
Of key consideration remains cash flow. We believe that for the moment the risk of a cash raise has subsided, with all debt fully serviced and the
business generating positive FCF. Absent further prolonged lockdowns, we believe the cash position will improve materially from hereon out.
However we caution that if the world locks down again, particularly Asia, cash collection would become materially more difficult.
That is not our core outlook, and we look forward to the resumption of dividends and the re-rating of these shares to reflect the fact that this is a
business that could make £8.5m of PBT on an 8.5% margin in a year impacted by COVID, making management’s mid-term goal of 10% PBT
margin look eminently achievable. If this could be achieved, and even assuming no real top line growth from here, Ince would be generating at
least £10m of PBT, or £8m net profit. We ask: would this not warrant at least a 10-15x PE multiple for an implied £70m-£105m market cap?
Compare this to the current market cap of £25m and we believe the shares look materially undervalued.