Ince Share Discussion Threads

[southernsong] 23/11/2022 18:12

All pretty much as I speculated....including the FY 22 revenue figure.

The ship is being turned around, but not without a few forward challenges (again as I previously posted).

Massive cost savings implemented the UK....now up to some £10M (!)

Cash position improving. £4.3M in the kitty.

Balance sheet improving with £7M of deferred payments removed.

Debt reducing nicely and debt obligations being met.

Trading back on the up across most markets since September but not without macroeconomic headwinds (this can and will, in time, change).

Wiggle room till December end for the FY results, again as I suggested to EmpireState.

The company is being overhauled....but just goes to show how mismanaged it was under the previous CEO (imo).

NAI ADYOR etc

[jim digriz] 23/11/2022 17:58

Yet another placing, sigh...

[quepassa] 23/11/2022 17:49

All very encouraging.

A buoyant Trading Update and broadly positive Outlook.

Good to see significantly increasing debt recoveries, a relatively strong cash position and full compliance with banking covenants and scheduled repayments combined with the strong beneficial impact of the ongoing and determined cost-cutting program.

Excellent to see that the new Placing price of 6p per share is already 20% higher than earlier Placements this year. Proceeds to be invested in core legal services of The Group.

With a new, refocused and streamlined corporate strategy, the rehabilitation of Ince gathers pace under new management.


ALL IMO. DYOR.
QP

[quepassa] 23/11/2022 10:07

Major shareholders of Ince as at 7/11/22:-

Beckington Limited 9.3%
Crux Asset Management 8.1%
Allan Sellers 7.6%
Donald Brown 7.2%
Spreadex LTD 5.8%
Edale 4.8%


(spellings of names as per InceGroup website 23/11/22)

[minja19] 22/11/2022 15:55

repost that 16.31, Wednesday week

[empirestate] 22/11/2022 14:25

regardless of time allowances for financials, the management can't publicly announce results will be provided in November if they will not be. 8 days to go is cutting it mighty fine imo, just hope it's not an issue with collection of their receivables.

[southernsong] 17/11/2022 09:01

gemstar2.

I've just reviewed the most recent trading update.

Regarding the debtor book.....I had been mistaken in assuming the £11M was weighted in the Far East mkt. In fact it appears to be predominantly in the UK, which I think is infinitely more positive. :O)

The company also stated the restrictions in China are now easing and they retain a strong cash position there.


UK & EMEA

In the UK the new management team has continued to refocus the performance metrics of the business and, in particular, to overhaul cash collection procedures. On 12 September 2022, we announced the appointment of Jill Watt to the senior management team as the UK law firm's new head of finance and administration ("HOFA"). Jill has already made significant improvements to our outstanding fee collections, which in turn assist our cash position as we make positive inroads into our GBP11.8m outstanding debtor book in the UK.


Asia

The Covid-19 pandemic has continued to have a negative impact on our Asia business and the travel restrictions continue to hamper cash collection and the reduction of cash lock up. However, the team have continued to develop business working with our high quality clients, especially in our core sectors, and the business retains a strong cash position in China. Restrictions on travel are beginning to lift, which will ease pressures on direct engagement by the Group's management with the local teams and will also allow those local teams easier access to their clients to begin the process of reducing built up working capital.

Current trading update

An analysis of recent performance indicates that the business is on track to have increased trading activity over the full year to 31 March 2023. However, results for the six months to 30 September 2022 are not expected to improve on the same period in the prior year on a like-for-like* basis.

The business is continuing to make positive progress under the new management and the previously announced cost rationalisation exercise remains on track. An update on the extent of annualised savings achieved through this exercise will be provided in the upcoming annual report.

A settlement was reached with the former directors of the Group and/or subsidiaries, Adrian Biles and John Biles, with minimal cash payments being required to achieve this, as outlined in our statement released on 28 September 2022.

Overall, revenues for the year ended 31 March 2022, are expected to be approximately GBP97m as indicated in the announcement of 23 May 2022, subject to audit and the accounting treatment which may arise from potential accounting deconsolidations of Singapore and Germany referred to above.

The release of the audited annual statements for the year ended 31 March 2022 has been delayed until November 2022, as announced on 6 September 2022.

Donald Brown, Chief Executive Officer of the Ince Group plc, said: "In my short time as CEO I am delighted with the progress we have made as a team. The Group continues to undergo a period of renewal supported by an excellent team of partners and clients. Together we are committed to providing a strong platform for future success, most of the components for which are already in place. I look forward to providing a more fulsome update at the time of the publication of our Annual Report."

[gemstar2] 17/11/2022 08:47

The Asian debt will be irrecoverable
Hopefully the auditors will take a firm line on this

[eringael] 16/11/2022 18:29

Thanks SS - let's hope they get a good chunk, the reason for the delays in the recovery of monies in Asia is a little unnerving as surely it would not require face to face meetings or maybe that's the cultural norm

[southernsong] 16/11/2022 17:41

eringael, they added someone to senior management just over two months ago to deal specifically with debt collection. Over £10m in debtors is quite a chunk to go at. Lockdown and travel restrictions in the Far East stated as the reasons for delays. Time will tell how much they recover. I'm hopeful they will make decent inroads there. If they get 50% of it back that in itself will represent a useful cash injection.

Can't read the article davebowler....only to say IF this is the last of a comedy of errors it surely represents the last of the Biles' legacy (?!) . His relative in the finance dept also went at the same time and immediately replaced.

Will Donnie Brown do any better? The irony of him sacking Biles - or at least expediting his removal - on the grounds of a conflict of interest - could be seen as a kind of comedy. Not so if you were buying in the 60 to 70p's of course, but just possibly a welcome fresh start for those buying in the single digits more recently(?)

Time will tell. NAI etc.

[davebowler] 16/11/2022 16:49

Quite.......

[eringael] 16/11/2022 15:48

Let's hope all the Asian debt is recoverable and they don't write a chunk off

[divmad] 16/11/2022 15:15

Could you please post the link?

[quepassa] 16/11/2022 15:09

Two months. Four disposals announced:-

CW Energy LLP
Ince Gibraltar Ltd
Ince Consultancy Gibraltar
Arden Partners


An increasingly streamlined and focus corporate structure.

Interesting Commentary/Note from Panmure to-day.


ALL IMO. DYOR.
QP

[southernsong] 16/11/2022 09:18

The final results, when released will tell us more about our near term prospects.

The figures from last year are by now pretty much an irrelevance.

What really matters is what has been done since Biles left and Brown took over.

We already the know the balance sheet *should* be looking a whole lot better.....and any inroads into INCE's c.£11M of debtors would be very well received. Given the situation that is a lot of money and the retrieval of it would do a lot to bolster the companies outlook. I'm sure it's a strong priority for Brown.

Should still be a company doing what c.£90M T/O and not a huge leap of the imagination to see sustainable profits on the horizon. If they can present that the company and share price should get back on a much better footing.

ADYOR and NAI etc.

[southernsong] 16/11/2022 09:11

Kind of ironic that Biles messed up as he did and put the share price under so much downwards pressure, but in doing so and as part of the same process ended up being removed for, we hope, something much better. Double edged sword and all that.

[jim digriz] 16/11/2022 09:10

We were diluted for the cash grab... still, I agree with Donnie Brown's approach generally and did somehow make myself buy more at 4p despite the painful round of dilution. They just need to not run out of cash. And somehow stop having profit sharing arrangements with their lawyers that don't seem to share losses/failure to collect from clients.

[southernsong] 16/11/2022 09:05

molatovkid - yes.

[jim digriz] 16/11/2022 08:59

I'd have thought they could have put more effort into selling it than just to Zeus for cash in bank and zero goodwill. Cenkos has a market cap of £26m today and net assets of £23.7m, I guess they weren't interested.

[molatovkid] 16/11/2022 08:48

Tough decisions have to be made. Management have a plan and vision. Arden doesn't fit the vision, and worse, is going to draw funds when the business can least afford it.

[jim digriz] 16/11/2022 08:39

Sorry, just reread the RNS. We are selling it for £1m with £1m cash, i.e. we are selling it for free. Wonder if that would pass a shareholder vote. Well, probably because few bothered voting when getting diluted 62%. Sigh.

[jim digriz] 16/11/2022 08:35

Ince acquired Arden when it had £5m cash. Please tell me we are disposing of it with some debt instead!

[molatovkid] 16/11/2022 08:18

Couldn't care less.