Manolete Partners Share Discussion Threads

[williamcooper104] 06/11/2019 12:10

Any ideas why the pop today - not that I'm complaining

[jonwig] 23/10/2019 16:25

Yes I thought it was a bit odd. But I guess he wasn't allowed to sell 1/4 m shares because of the lock-in.

He earned £360,000 last year, and it will be a lot more this year, it's a hard life for a CEO.

[czeck] 23/10/2019 15:12

LOL. The Company announces that on 23 October 2019, the Chief Executive, Steven Cooklin, who is a significant shareholder of the Company, pledged 3.4 million ordinary shares in the Company as security against a personal loan of £1 million primarily to fund personal tax liabilities and the completion of his home renovation in London.

[leadixon] 23/9/2019 10:50

The reduction in profit was due to setting up new offices in London and Singapore, whilst also taking the IPO costs into account. I’m invested in both so happy with Mano, however will be interested to see how LIT gets on given they’ve just launched a pilot in insolvency funding as well, so should be able to realise some shorter term litigations and given they have significant net cash to invest.

[jonwig] 22/9/2019 07:00

leadixon - can't help you really, as I haven't looked much at LIT.

But your post might give the reasons! Similar profits on bigger revenues suggests less profitable, and more diversified suggests the same, given that MANO is the main UK player in probably the most profitable niche area of litigation funding.

Also, it's not just revenues, but revenue growth which determines value: with MANO it appears to be doubling year-on-year. Maybe bottom-line earnings are more than doubling.

[leadixon] 22/9/2019 00:04

I still don’t quite get how the Market cap of Mano is over double that of LIT, given LIT Saw bigger revenues, comparable profits and a more diversified portfolio. Really like Mano and their expansion plans, but still just can’t pin point the reason for such a difference.

[sallad3] 21/9/2019 10:30

"talk to me after Wednesday" in relation to one of them was the response to that question from another shareholder as discussions are scheduled. Quite correctly they pointed out that the half year ends on 30th Sept. He asked if it would be RNS-worthy and was told the Board will be advised on that point at the time.

[miti 1000] 20/9/2019 20:46

sallad3 ,

Did they make any mention of the 2 big cases they are hoping to settle soon? One was being deliberated in September with the other party and was regarded as material .TIA.

[sallad3] 20/9/2019 16:38

Forgot to mention that the "inconsistencies" in the 90/10 split on the CityLink and Comet claims was explained as arising after the IPO (at which time they were 100% owned) when the legal advisers recommended that "it would look better" (or similar words) if the liquidators/administrators retained an interest.

Accordingly arrangements are being made to "gift" 10% back to the liquidators/administrators who are in the process of asking the court to restore the CityLink company so that it/they can receive a Gift. That hasn't happened yet.

[williamcooper104] 20/9/2019 15:54

Isn't the average recovery period 12 months So any material overstating of FV would be shown up pretty quickly

[jonwig] 20/9/2019 15:49

sallad - excellent news, thank you.

Since their reolution period is so short, and case size relatively small, I'd be surprised if there were accounting issues. Even so, the market managed to have a fit last month!

[jaws6] 20/9/2019 15:42

Thank you sallad3 for info.

[sallad3] 20/9/2019 15:26

jonwig

I asked those questions and a few more. We had about 40 minutes of questions on the first resolution about the accounts.

My concerns were addressed in detail and satisfactory explanations given. I hope other questioners were as satisfied - I sensed they were.

The Punter Southall valuer is in a small specialist unit and man named David Rankin who is "In charge" of most of the entire group of all truck claims. It is coincidence that there is a tie-in with Faulkner/Moulton etc.

Apparently Coca Cola bottlers have already had their truck claim settled as has another big one whose name I have forgotten (Eddie Stobart?). There has also been a favourable court case result in Holland(? - I think).

The fair value accounting policy is driven by the fact that the purchased cases are recorded as investments and they must be revalued every year under mandatory accounting standards. Lawyers/accountants don't have to do that because they carry their tens of millions of CFA/DBA cases as work-in-progress and therefore argue they don't need to disclose the total amount arising from expenses that have all been written off in the current and prior years - that is for another day and another forum.

It was confirmed that Corporation Tax has been paid on the uplift in value - which is about £1m - and that they would be unlikely to let cash out of the door on unrealised profits unless they were truly happy with the value.

I asked for more detail on the extent of commercial dealings with RSM the auditors, and it was said that no IP firm accounts for more than 5% of business (two are at that level) and RSM is not one of them.

The strategic partnerships with the ICAEW/R3 and IPA are 3 year sponsor/promotional deals at their Recovery conferences.

The pre take-up enquiries always evaluate credit worthiness of the counterparty and if after judgment/settlement time to pay is given then security is always obtained - charge on houses etc: about 80% of current debtors are secured - and will be enforced.


All in all I came away with a sense that they have a very open disclosure policy with shareholders and that now that the IPO is out of the way the path forward is pretty clear and well determined. That isn't to say its all plain sailing but I can't see any Burford type problems so long as settlement/winnings are all in cash and not shares in a business!

[jonwig] 20/9/2019 09:35

Hi, peter. If you're going there, can you ask if they've reviewed their accounting principles - ie. fair value of assets? Even if they've only discussed them informally?

[peter27] 20/9/2019 09:25

I will pursue this at the AGM.

[jaws6] 20/9/2019 08:13

agree miti

[miti 1000] 20/9/2019 07:37

He is saying that but its poorly worded.

[jonwig] 20/9/2019 07:10

AGM statement:

At the Company's AGM being held later today, Steven Cooklin, CEO of Manolete Partners, will make the following statement:

The Company is pleased to report that the pipeline of new cases the business is investing in continues to develop strongly. The Company has invested in 60 new cases (compared with 59 (excluding two Cartel cases) for the 12 month period to 31 March 2019) and completed 18 cases in the financial year to date (H1 FY19: 12 completions).

I presume he's saying investment rate has doubled.

[aim_trader] 28/8/2019 11:42

Manolete Partners will be presenting to investors at the upcoming Proactive One2One Investor Forum on Thursday 5th September in London. For details and registration, click here:

[sallad3] 27/8/2019 13:31

JakNife

Any further knowledge of Punter Southall connection beyond:
1. Very significant shareholder in River & Mercantile which owns P-Solve ex Punter Southall business and where:
2. Michael Faulkner is CEO and
3. Faulkner is founding and still significant shareholder in MANO and only resigned as a MANO director in Nov 2018 long after Cartel claims were not only purchased but also valued at £4m.

Anyone else any knowledge of valuation experience?

[sallad3] 16/8/2019 06:49

Anyone know why Mr. Cooklin and the accounts state the CityLink and Comet claims are 90/10 split when the Listing Doc says there is no 10% payable (page 19)?

[sallad3] 15/8/2019 21:41

Many thanks JakNife