Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Allianz would be loading the dice against themselves if they were to antagonize the Court by holding out for an unnecessary and time consuming trial, instead of going for an agreed compromise, which the Court appears to want to encourage.
They make it sound like a complicated case and thus who would want to risk it on a throw of the dice which is English Common Law.
Thus an agreed compromise could well be the best solution for both parties, but then again depends on how confident Allianz feel about winning a court case.
It’s worth noting that the Court:
“Varied the existing ADR order to provide for the parties to take steps toward Alternative Dispute Resolution (ADR) before 10 January 2022, in advance of the third CMC”.
It also “vacated (cancelled) the March 2022 trial date.
I read this as meaning that the Court wants the two parties to sort this out through the ADR route. It’s a pretty strong hint that it is looking to them to reach a compromise without the need to waste more of the Court’s time. If I were advising Allianz, I’d be telling them that half a loaf is better than none and that they risk antagonizing the Court by dragging everyone back to a trial in late 2022/23.
But hey what do I know. If fear of this “Sword of Damocles” encourages people to sell down to 40 or below, I’ll be happy to add to my position.
CHRI55,
As it says in the bible "seek and ye shall find".
CHR
RN thanks seen it now. Will drag on if they don’t use that process. 2023 mentioned for any payment over 2 years away.
The ADR info is in the half year results towards the end :-
https://www.investegate.co.uk/brown--n.--group-plc--bwng-/rns/half-year-results/202110080700024286O/
Red ninja what’s the source of that info please.
Chris price the sp low as banks exited when they found out no divi resumption. It’s documented, hey Arnold kindly sent me the data.
JDW have approached Allianz and proposed an ADR process.
where ADR I believe stands for Alternative Dispute Resolution, so there has to be a chance that this may never go to court and the come to an agreement outside court.
Just nonsense from Chri55 , it’s his standard post when he wants in cheaper.. anyone who knows the company knows the reasons behind listings.
The Alliance family will want the divi back here ASAP.
The court case could go either way not a concern, Bwng may win, loose or draw, it will probably drag on for years as they do in the US.
If this goes to 40p which is what Chris’s wants I will 100% double my investment here. Sub 50p it’s a complete steal, it’s worth 90p at least that’s 70p for net asset value and just 20p on top for £40mil net profits pa.
I thought part of the reason Alliance family took BWNG to AIM was inheritance tax.
If they take it private no AIM listing required and no inheritance tax saving.
Chri55 “Let see if it reacts to the 2% online tax in the budget tomorrow, seems to have slowed asos down. I will probably buy in after we are clearer on that”
………..
Nope didn’t happen in spring when the press said it would and not happened in this autumn budget either.
Bwng now 20%+ below last years 57p placing 40% off post covid highs….crazy price after a strong set of H1 results and with a full year ebitda forecast of £100mil.
Not forgetting the Nav here worth 70p a share alone with a profitable business thrown in for free.
Well said Ian
Seems at a min 20% undervalued
Also Lets not forget NBrown is a very profitable business that made a net profit in H1 of £23mil and should make £45mil NPAT FY 2021
Jeffries clearly sold, i think a few other investment banks sold as no divi announced in HY results. Thats why its so cheap now and very undervalued.
Jefferies forecasting ebitda for 2023 is a joke. Did they forget 2021 and 2022. Even if they by some miracle are right and they an predict accurately so far ahead and ebitda is actually down 11% in over 2 years time… how does that justify a target of 50p down from 95p? Once they buy back in their target will be back up. Agenda driven nonsense.
Yes, I think it's super cheap and valued like a dying department store rather than an online retailer.
Jeffries are the one broker i give zero credence too. Irecall them issuing a note on nbriwn cutting target when i was last in only to completely reverse it a day or 2 later.
Agenda driven maybe?
They have managed to turn a tail wind into a negative..
So they (American brokers) cuts 2023 ebitda by 11% (2years away) but drop target price nearly 50%..
The facts are are the company forecast FY 2021 at £93- £100million on mcap of £200million…
Another analysis-
“What I find even more ridiculous about #bwng is after huge cash generation last year it’s net assets (completely excluding intangibles) are now £318m / c. 70p a share.
At these prices you are getting a 30% discount to NAV with a £100m EBITDA a year company thrown in for free.”
Jefferies downgraded its stance on Simply Be and Jacamo owner N Brown on Monday to ‘hold’ from ‘buy’ as it said the company’s recent first-half results were not as solid as they appeared.
The bank said that while the interim results "looked solid enough", looking more closely, there were plenty of signs the first half was more of a struggle.
It pointed to slowing revenue growth, with tougher comps to come. Jefferies also noted more pressure on Product gross margin, which declined by a further 280 basis points.
"Even if some of this was transitory (freight/VAT), additional discounting and promo activity still cost 100-150bp," it said.
Jefferies also noted a "substantial" one-off boost to the Financial Services margin. "Most concerning, is the support of a circa £15m one-off FS benefit from lower write-offs," it said.
"Without this boost, H1 EBITDA would have stepped back significantly, and FY guidance now only appears achievable thanks to the inclusion of this tailwind."
The bank cut its FY23 EBITDA estimate by 11%.
"While we continue to believe that the strategy being executed is sensible, we are concerned that the long-standing challenges posed by operating a stable of mixed quality brands supported by a relatively high APR credit offer will prove difficult to offset," Jefferies said.
"Reflecting a lower forecast base, and a more subdued terminal growth expectation, we lower our price target from 95p to 50p and our recommendation from buy to hold."
At 1240 BST, the shares were down 2.8% at 44.64p.