Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Featuring: DWF Group plc (DWF), Manolete Partners Plc (MANO) and Burford Capital Limited (BUR)
This seminar consists of a 25-minute presentation by each company followed by 15 minutes of questions and answers. Companies presenting are interesting growth companies of small/medium cap size. Attendees will have the opportunity to talk directly to the directors of the presenting companies. This is also a great opportunity to socialise with your fellow investors and discuss these and other investment opportunities.
Click here to register: https://www.sharesoc.org/events/sharesoc-growth-company-seminar-london-07-december-2022/
dwf ceo,on sky news atm.
Criminal barristers in England and Wales have voted to end their long-running strike action after the government offered a new pay deal.
full FY results out tomorrow!
results next week
Berenberg starts DWF with 'buy' - price target 160 pence
loose or win DWF still gets payed, nice
MIDAS SHARE TIPS: Legal eagles of DWF have spread their wings and are on the up and up under the auspices of chief executive Sir Nigel Knowles
By JOANNE HART, FINANCIAL MAIL ON SUNDAY
PUBLISHED: 21:51, 26 March 2022 | UPDATED: 21:51, 26 March 2022
A bit more flavour. So if this work was divided evenly amongst all firms DWF share would be even this means they could be looking at £18m per annum. I presume they were already on the government central legal panel which is why it wasn't announced.
Clyde & Co and DAC Beachcroft are among law firms to have won places on a legal panel advising the NHS on resolving concerns and disputes, worth a combined £193 million. 11 law firms have been handed places on the NHS Resolution – a branch of the Department of Health and Social Care, providing advice to the NHS on resolving concerns and disputes – legal panel, which comes into effect on 1 March 2022 and will run for three years. The panel framework comprises two sets of law firms and has a combined value of £193 million per year. Clyde & Co, DAC Beachcroft, Browne Jacobson, DWF Law, Hill Dickinson, Kennedys, Weightmans, Hempsons, Bevan Brittan and Capsticks have won roles on the first panel, which has an estimated annual expenditure of £188 million per annum.Panel two will operate based on a significantly smaller £5 million per annum. According to a statement, the first panel will manage claims for NHS members and beneficiaries across hospital Trusts, GP practices and independent sector providers under clinical and non-clinical indemnity schemes. The second panel will provide legal advice to NHS Resolution and other branches of the Department of Health and Social care, covering regulatory, health and employment law. DAC Beachcroft, Weightmans, Bevan Brittan, Blake Morgan, Browne Jacobson, Capsticks, Hempsons and Hill Dickinson make up panel two, with all spots awarded after a competitive procurement process. Head of insurance at DWF Glyn Jones said: “This is our first appointment to this panel and we look forward to establishing our relationship with this new client, delivering our recognised high quality and innovative approach to proactively resolving claims in support of NHS Resolution’s strategic aims and providing value for money for the taxpayer.” Last month, 14 law firms including DWF, DLA Piper and Pinsent Masons were named as suppliers on the U.K. Government’s central legal panel valued at £430 million.
Half year results from UK peer Keystone today. Interesting comparison to DWF. DWF is
5x the sales
7x EBITDA
50% better margins
Similar sales growth >10%
4x the dividend yield....
and only 1.5x the enterprise value. DWF is still below its pre covid share price while Keystone is 30% higher. Might see a trading update from DWF for Q12022 any day now... Opportunity....
Solid revenue growth, PBT ahead of expectations, improved working capital efficiency and better gross margins across all businesses. They are still yet to see the impact of the operational changes and discontinued loss making businesses from last year and they have made a couple of small acquisitions which will all further support growth and improved margins this year.
The fact that this is still well below pre pandemic prices is a huge valuation anomaly. The business has not only recovered but has improved substantially since then. EV/EBITDA is only around 5x which flows through to chunky cash flows and the dividend yield looks to be 6-7% over the next 2 years and growing.
With the rise today this has entered into my top 5 holdings and I intend to buy on any more dips. I'm a huge fan of what Sir Nigel is doing with the business
How could they possibly be considering an IPO at 750m?!
The law firm that represented Princess Diana in her divorce is considering an initial public offering. Mishcon de Reya on Wednesday said it may list on the London Stock Exchange later this year, with a valuation of as much as 750 million pounds, according https://www.ft.com/content/73023d4a-5d6b-4148-bbae-401615e6fb95 to the Financial Times.
That looks punchy. Mishcon expects revenue of around 188 million pounds for the year to April 9. Its UK peers, such as DWF , are valued on average at 2 times sales including debt, according to Refinitiv data, implying a valuation of around half the mooted amount. Its partners want to more than double revenue to 400 million pounds in five years, an ambitious move given uneven revenue growth in recent years.
True, Mishcon has good pedigree, and no debt. But listed law firms can be tricky investments: aggressive expansion can backfire, and partners may struggle to get lucrative business under the public glare. Mishcon will use the money to shift its business to non-legal areas, such as consulting, which may have higher growth, but are also less tested. Caveat emptor. (By Dasha Afanasieva)
don't understand how this is valued at more than gateley, what am i missing?
Very good results
1H Revs+14%, FCF+11%, EBITDA and PBT +25%, "Gross margin is beginning to trend ahead of HY20 and is 2pts higher than the diluted FY20 full year margin"
Is this start of a rise for next weeks results?
Seems to be good news coming out with additions of employees, who presumably bringing work and clients with them.
Anybody know why the preliminary results will be published so late, Sep 8th this year compared with July 31st last year ?
Positive results released today
That’s why the CEO was defenestrated. The unknown issue is whether or not an equity raise is required. We’ll know with the Prelims at the end of the month.
nice to see all the buys
The next significant announcement will be shock horror they have overpaid for businesses that didn't really understand and as a consequence have overpaid for.
Big drop in share price, management clear out and possible right issue.
Expect they will raise some capital via a share issue to just keep them going. Was talking to a friend who works for a big 6 legal firm, most have seen a 60% in revenues and have been releasing people from training contracts just to save money
In my experience there will be more bad news before things get better. An interesting share but not at the current price or now. Lets see what skeletons come out of the cubhoard in the next announcements. Once the decks have been properly cleared investors might start to see the woods from the trees.
Would be useful to know why the CEO was defenestrated. The directors are now in the close period on the basis annual results are published late July, so cannot trade. They bought shed loads of stock between 83p and 90p in late March when the shares fell on the previous trading update, so you'd think 66p would be a bargain if they were allowed to buy. Sir Nigel Knowles, stepping down from Chair to CEO, has a demonstrable track record of success elsewhere and owns > 2m shares, so good alignment with shareholders. Vin Murria, who has a glittering track record of creating shareholder value elsewhere, is an NED and bought >1m shares on March at 83p. On my back of the envelope calculation the problem is costs given revenue was up 11% y-o-y, (about 6% organic), which is actually quite impressive given they lost 2 months to Covid, plus they made a big Spanish acquisition in December which will be hurting. Net debt/EBITDA ratio is uncomfortably high on the bombed out EBITDA number for 19/20 but EBITDA ought to recover quickly in 20/21 given disclosed & quantified cost savings being implemented. Legal services is a consolidating industry and DWF have a recognised niche in insurance so, for choice, a stock I would be looking to buy. Don't forget the IPO at 122p was over-subscribed only 14 months ago. With any luck, an institutional seller might appear in the coming weeks and weaken the price further. But don't bank on it.