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Sp, of 61, has to overcome preceding peaks at the same level, in October 2020, and September 2021. The next potential resistance from an old low is 77. Both Bollinger bands are separating, upper band going up and lower band heading down. This simply means the price will move fast, until such time as the lower band starts to turn up, when a retracement , may begin.
Interesting and reassuring interim results this morning.
They are progressing well with their strategy of building up a book of WIP (work in progress) within their law firm and are balancing investment in cases with cash flow sensibly. Once the book reaches maturity (FY24), it should generate £2-3m per year in profits, which when added to the c. £3-4m+ profits from their other main division (provides Critical Care assessment and expert witness services), the group should be earning in excess of £5m per year. That's against a market cap of c.15m (EV of £29m). I hold.
Hefty purchase today. Can’t grumble at a quarter mill bought.
The spread says it’s a “buy” .....let’s flippin hope so...
RNS due soon me hopes
Based on their most recent update, its likely that their book of claims within national accident law is likely to be worth north of £10m+ in future cash profits.
Thats an asset which does not appear on the balance sheet, and makes up over 60% of their current market cap on its own.
There is a large store of value in this group of businesses, which is not fully appreciated by the market because of poor current profit metrics and historical regulatory impacts. For anyone who has a 2-4 year view and can be patient, its likely they will be rewarded.
For example, the Bush & Co business (likely valued in excess of £35m - £40m +) and the National Accident Helpline claim business which as the capacity to deliver circa 40k claims enquiries per year on an ongoing basis (for reference Express Solicitors who are actively acquiring the book of claims from firms who are deciding to exit the personal injury market are currently paying on average £500 per claim in the book). If a private law firm were to purchase National Accident Helpline to use as their marketing funnel to drive personal injury leads for their firm, NAHL would have the capacity to deliver "rough estimate" - £10m - £20m in cash profits per year if those claims are processed in house. I would think a private buyer would be willing to pay roughly £30m - £50m for that earning power.
add that all together and your left with
- £10m book of claims in NAL
- £35m - £40m Bush and Co value
- £30m - £50m National Accident Helpline business value
total - £75m - £100m in value
take off the £14m of debt, roughly £60m - £85m
As the company pays off the debt, and continues to execute on its plans and delivering solid cash flow, its likely the valuation will reflect over the medium - long term.
If anything the price of these businesses at current levels presents an extremely attractive risk reward, with the likely hood of any meaningful loss minimal given the value of the assets. And the strong potential for meaningful upside over the next 2-4 years.
decent £49k buy today....
Pleasing to see
Also, odd large buy/cancelled today.
Overall a healthy update.
Crazy this is still a graveyard stock.
And still extremely cheap.
Good call.
Grabbed some more at 29p today … moved up on low volumes … flurry of trades last friday fingers crossed I’m not being caught in a bull trap.
Should be back up near the £1 mark if not more.
50p target for me.
Very encouraging results post Covid lockdowns.... increased business across the board.
Gob smacking this is still carrying cobwebs in the market.
Was out at 42p … back in for a small punt at 37p.
Grabbed a few ..... this morning.
sounds like you don't want this guy anywhere near your company, with a track record of receiverships like that, this does not bode well :(
yeah, I think if it drops into the lower end of the 40's i 'might' consider adding some more here, i'm so far under water i think i'm in a cave, so have to do something to try and dig myself out of this hole!
I had thought they had a good plan to diversify and shift the main focus of the business away from ambulance chasing, but once they killed the dividend, that was game over for many investors, and the SP has never recovered.
Colebrook increased holdings by almost 1%... always good to see increasing interest
Been such a long time now that this share is still covered in cobwebs
Shorts over cooked it .... I sold 48p a few weeks ago to get back into profit .. then back in at 46p ... I'm out again .... Wait to see if the price drops back down to the low 40s .... otherwise never mind.
GLA.
Entire market is a bloodbath today, and this goes UP !!
a bit livelier today...maybe something's on the way....long time coming
Dunno about that .... this share has been a sell into 50s buy back low 40's for 6 months and more ...
... did look like 40p was going to be breached but moving up strongly now.
48p and I'm back to even .... from a smallish loss 3 or so years ago ... only playing with small amounts this time.
GLA.
Half year results showed a dip in revenues from £20.2m to £19.5m due to less enquires during the pandemic. So revenue down a pithy £700k.
Went from a £0.4m loss to a £0.6m profit.
Profits attributable to joint-venture law firm partners dipped 26% to £1.7m.
Good luck to all remaining here. I sold out a couple of months back and looks like I made the right move.
all things considered it wasnt too bad.
heavy down too.... kinda numb to it now.
maybe they'll pick some business up from all of the argy bargy to do with fuel bust ups. What a comedy show this currently is.
I didn't think the results were bad. I think they did quite well considering. Let's see if they take on some related covid work.