Knights Share Discussion Threads

[trader465] 10/7/2023 16:04

Added a few more today I think over 100p is easily achievable

[nakedmolerat] 10/7/2023 10:57

Inflexion in talks to buy DWF

[craftyspeculator] 10/7/2023 10:42

And there goes one rival to a PE bidder - DWF...cash offer

[craftyspeculator] 10/7/2023 09:41

market cap £56m plus £29m net debt for an enterprise value of £85m, versus net cash generated from operations of £20m = on a 4x multiple. Way too cheap. If they stopped doing acquisitions they would become a cash cow on a ridiculously low multiple. Net debt / underlying EBITDA is also under 1.0x so no concern there.

UK peers like Keystone, Gateley and DWF are rated at a multiple of this. Something has to give. Either the share price goes up, or David Beech buys it back. He sold 20% of his shares for £61m in 2021 and still owns 20%, so he could buy out the shares he doesn't own for less than the price he got for 20%. Genuinely think this is a possibility as 2023 progresses and the interest yield curve starts to flatten.

[elsa7878] 10/7/2023 08:22

A focus on cash generation and debt reduction v acquisitions would really transform the outlook here.

I note a reduction in acquisition expenses for 2024 of £9.3 million v £11.8 million last year which will help.

[blondviking] 10/7/2023 08:11

Legal firms tend to make money in good & bad times.

[elsa7878] 10/7/2023 08:10

Very definitely improved performance. Debt the same despite paying nearly £12 million in acquisitions and partner churn down.

[mbdx7em21] 10/7/2023 08:09

a bit of a disconnect between the fundamentals and the share price? looks like it to me

[trader465] 10/7/2023 07:07

All looks good…

Financial highlights
-- Revenue increased by 13.1% to GBP142.1m (FY22: GBP125.6m)
-- Gross margin of 48.5% (FY22: 49.3%)
-- Underlying PBT (1) up 19.1% to GBP21.6m (FY22: GBP18.1m); underlying PBT margin increased to 15.2% (FY22: 14.4%)
-- Reported PBT increased to GBP11.5m (FY22: GBP1.1m)
-- Underlying EPS increased to 20.20p (FY22: 17.23p). Basic EPS 9.28p (FY22: loss of 3.02p)
-- Lock up(2) was 87 days (FY22: 86), with debtor days at 30 (FY22: 31)
-- Cash conversion (3) of 117% (FY22: 109%)
-- Net debt(4) of GBP29.2m (30 April 22: GBP28.9m), in line with the Board's expectations
-- Final dividend of 2.50p recommended (FY22: 2.04p), giving a 15% increase in the total dividend to 4.03p (FY22: 3.50p)

[peddlers] 07/7/2023 13:51

Yep, good to know they've cleared out now.

[lennonsalive] 07/7/2023 10:39

That explains the sell off

[peddlers] 05/7/2023 12:05

My short term target will be 95p , then review depending on circumstances

[peddlers] 04/7/2023 11:00

10% up today. Someone knows something for sure.

[lennonsalive] 04/7/2023 09:37

I'm in for a run up on 120p

[peddlers] 04/7/2023 09:35

I going to add some more at the close

[purple11] 04/7/2023 09:10

im in for a few gla

[elsa7878] 04/7/2023 09:04

Results on Monday. Interested to see what they say as the vibes around this sector are desperate. Optically £20 m plus pbt on a £50 m market cap is insanely cheap if you're comfortable with the numbers.

[peddlers] 04/7/2023 08:50

Looks like it's found the bottom. Could get a good spring forward at this support level.
It's looking very very cheap at this price

[peddlers] 03/7/2023 15:46

There's an echo

[peddlers] 03/7/2023 15:46

I've bought in today. Looking very cheap at this level.

[peddlers] 03/7/2023 15:45

I've bought in today. Looking very cheap at this level.

[0rient] 03/7/2023 14:32

Anybody know what’s behind the sell off?..we had a 20% rise on the trading update so the market must have been impressed.
Never thought I see it down here again!!

[elsa7878] 16/6/2023 12:06

If the reduction in debt is genuine and not just end of year window dressing. ie they really are producing real profits and cash then it is very cheap. Contract asset accounting makes it susceptible to trickery pockery if the FD is inclined. Had a little nibble too as they are in the last chance saloon and think they will produce cleaner figures. We'll see......If they do it could double the share price

[w1lbur01] 16/6/2023 11:11

Back in today