Manolete Partners Share Discussion Threads

[xpertgreeny] 29/3/2020 20:37

If you look at all their case type analysis that they have ever published, Wrongful Trading has always been the least frequent by far. Even in “normal times” these claims are notoriously difficult, so little surprise.

[battyliveson] 29/3/2020 15:53

I noted yesterday that the govt has stated that business owners can no longer be prosecuted for "wrongful trading", which I believe would be one of the regular claim types that MANO would handle. I don't know whether it is from onset of virus lock down or a blanket ban on all cases going forward, but may have some impact on MANO future income.

B

[mrnumpty] 29/3/2020 09:24

There’s a small article on the front page of today’s Sunday Telegraph “ Business and Money “ section about another “ leading insolvency specialist “ whom I had never heard of before and who , as far as I know , has nothing to do with Manolete . Anyway , in passing , the article states “ Duncan Swift , président of R3 , the trade body for AN INDUSTRY PREPARING FOR A PANDEMIC BONANZA ... “ . Mr. Swift is , according to the Telegraph article , a partner at the accountancy firm Moore UK .

[jonwig] 18/3/2020 14:45

@ xpert - great, thanks. Should be RNS on that.

[xpertgreeny] 18/3/2020 13:51

I see MANO just posted on their website. "Steven Cooklin, CEO of Manolete Partners: “COVID-19 has had no material impact on Manolete Partners Plc to date. The business structure lends itself well to operating remotely without interruption. By default, all employees in our regional offices work from home and employees in our London headquarters have been working from home for the last two weeks. The courts remain open for the time being and we continue to monitor this situation closely. However, very few of our cases go to court and we will conduct mediations and other Alternative Dispute Resolution meetings mainly using video conferencing services during this current period of social distancing.”

[martindjzz] 13/3/2020 20:36

Whilst I am sure that is right Dave, I am wondering if the many consequences of the virus might include a slowing of court processes resulting in a deferment of MANO revenues in the next year or two?

[davebowler] 13/3/2020 13:35

The number of SME Insolvency cases may well rise with the coronovirus scare, sadly.

[jonwig] 11/3/2020 06:26

William - agree. The time element is important: any company which can collect its cash within a year (on average) will be better regarded by the market than one where it's several years ahead.

[williamcooper104] 10/3/2020 22:33

It's the quality of E - in mano it's regular granular cases - Bur has some large outlier cases - eg Peterson which are mega windfall profits - and while they are great you cannot assume that they are recurring earnings - so it's perfectly reasonable for Bur to have a lower PE Also a big chunk of Burs earnings are fair value gains - mano fair values too (from memory) but has smaller cases which generally settle quicker It's debatable if PE is the right performance metric for a LitFin company Mano is more of a debt collector than a lit funder - so it's quite a different business model from Bur

[scubadiverr] 10/3/2020 21:24

Can anyone give a reasonable justification as to why this trades on a PE twice that of Burford?

[martindjzz] 03/3/2020 16:35

The same presentation shows YTD gross cash receipts up by 27% over the FY19. We are not told what proportion of those receipts accrue to MANO but hopefully a constant at least. Then a slide shows the near term opportunity of £15.1m pro forma EBIT whereas it was £7.2m in FY19. We can all speculate the meaning of the words near and opportunity, but I would be surprised if they would put that comment out there if they did not think they could achieve it in FY22.

[gaiusgracchus] 19/2/2020 09:08

Yup. From that presentation:

"FY 19: 65 new case investments .v. FY20 YTD (10 months): 115 new case investments"


They don't specify the average expected size/value of the FY20 vs. FY19 cases, but they're unlikely to be getting smaller. I'd have thought..

[martindjzz] 19/2/2020 08:50

Increased my holding by another 20 per cent today and feeling good about MANO prospects.

[jonwig] 19/2/2020 08:06

Thanks, would never have seen that!

[xpertgreeny] 19/2/2020 08:05

Very interesting update posted by MANO

[battyliveson] 14/2/2020 12:28

If similar to last year, I would expect an update soon. Good high margin business and far quicker cash conversion than BUR.

Happy to hold and await news.

B

[saucepan] 14/2/2020 12:03

Hi folks

I have joined you today. MANO has kept appearing in my ShareScope value/growth screens and I cannot see any reason to keep ignoring it.

[hiraniha] 09/2/2020 18:15

34 mins in.https://podcasts.google.com/?feed=aHR0cHM6Ly9hdWRpb2Jvb20uY29tL2NoYW5uZWxzLzQwOTk1NjAucnNz&episode=dGFnOmF1ZGlvYm9vbS5jb20sMjAyMC0wMi0wNzovcG9zdHMvNzQ5ODY0NQ

[jonwig] 07/2/2020 11:48

That may become irrelevant, as the relief may be abolished - even the whole tax replaced by something simpler.

[xpertgreeny] 07/2/2020 08:23

V important PI news just up on MANO website.

[stevevcjp] 30/1/2020 10:26

Impressive knowledge gents, particularly Martin. Many thanks indeed.

[martindjzz] 30/1/2020 00:06

Hi Jonwig and xpert, MANO will be due the pre-agreed share of the £4.2m. My guess is that the case is item 19 on slide 16 (32 Cases with strong, visible completion prospects) of the shares presentation of 11th December. It will already be on the balance sheet as an unrealised asset, at a valuation determined by the Directors as guided by external counsel (per slide 14).

Now the company needs to turn the asset into cash and that depends on the ability of the defendant to pay up. Hopefully that was factored into the balance sheet valuation.

[jonwig] 29/1/2020 16:14

Thanks xpert - So who gets the £4.3m? We aren't told, of course, but if M had bought it (as per usual practice) presumably it's made a decent profit.