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Started: eye_of_the_bull, 21 Jul 2023 09:32
Last post: eye_of_the_bull, 21 Jul 2023 09:32
Does the takeover code preclude FY results being made public? The last 2 years Dwf results were posted on today's date, but not today
I think DWF have colluded with Inflexion. Management must be looking at some good terms here. Why was the recent trading update missing any profit guidance? I felt this was shorted, and it was, to get a cheaper buy out.
Inflexion either has a hell of a plan on how to monetize their acquisition or has much more info on new developments than general market has (given recent new Commercial Services appointments), otherwise it doesn't makes any financial sense of buying out DWF at price way above fundamentals.
All out in the open nearly three hours after the market opened. Those with insider knowledge have been given the opportunity to make a few quid in the meantime.
Well done to those who sat this out! I'm not in shares anymore. I needed to move on with my life, but this is good to see.
Started: NGC001, 23 Jun 2023 13:17
Last post: eye_of_the_bull, 6 Jul 2023 16:12
Given the blood bath and sea of red elsewhere in the market today, ftse down almost 3%, this is actually a great day only losing a fraction and maintaining recent gains. really promising
Spread looking better at the moment. Hopefully we will break 70p...
Nice gap up, some chunky buys and no sells, upward pressure is strong on this now, looking very positive
Well a month on from the trading statement no sign of a placing. With the exception of that note from Liberum everyone seems to be scratching their head about the drop. There does seem to be some nervousness around the final dividend to be declared next month , which should be around 3.5p, however this is only around £12m in cash flow to be paid in October, plenty of time to improve the thin cash buffer. Saw this note the other day which is a very good summary of the company and the situation
https://masterinvestor.co.uk/equities/dwf-group-mega-cheap-on-a-10-86-yield-and-5-43-p-e/amp/
"My View – Possibly One Of The Cheapest Quality Stocks that I have seen for quite a while"
Commercial law firms do best when there is a vibrant economy (unless they are hedged by strong litigation/insolvency practices). Firms heavy in real estate may be particularly vulnerable if that market slows down (commercial property is in the doldrums for structural reasons). That said, it's easy to identify risks, but the tricky bit is assessing how much of that negativity is priced in already....?
Last post: eye_of_the_bull, 16 Jun 2023 14:39
A quarter a million £ buy! surely now the only way is up?!
Turning a corner perhaps?
I published some thoughts on DWF, have fancied making a few videos. It is not advice, just observations.
https://www.youtube.com/watch?v=Sa9qAT1O8Fk&ab_channel=DartronTrading
Sir Nigel in the TU referred to the company performance and business as "Robust".
According to the dictionary, robust means;
a: having or exhibiting strength or vigorous health
b: having or showing vigor, strength, or firmness
c: strongly formed or constructed : STURDY
d: capable of performing without failure under a wide range of conditions
Since they are lawyers, they will always choose their words wisely.
I can't see the negative yet, just speculation. I hope I'm right here and this will correct very soon, time will tell.....
Looking at the volumes I am personally hoping this is retail panic selling with little substance.
I continue to hold as making quite a paper loss right now, and will ride it out long term.
I do believe in this company, although communication isn't what it should be.
Started: NGC001, 30 May 2023 14:55
Last post: HumpyDumpy, 2 Jun 2023 18:20
Yes it would, wouldn’t it. Perhaps that’s the reason the price is dropping?!
It seems such a severe reaction one one negative review after a generally positive TS?
Granted the volumes here aren't massive so it's the retail investors who are spooked with talk of a covenant breach.
DWF advise other companies on avoiding covenant breaches so this doesn't add up to me. Their reputation would be in tatters if that happens?
Liberium are clowns, did exactly the same to NEX post results and the sp sunk 10%.
The same analyst had a hold at 80 just after results, and then downgraded the next day and the markets have listened and ignore Berenbergs very positive analysis.
This is purely down to Allen from Liberium imo
The Zeus statement seems much more bullish than Liberum, a small miss on sales and profit but improvements to next year and no mention of leverage or cash conversion challenges despite a ratio of 1.6x compared to the covenant of 1.75x. A dividend of 9% next year is high enough to suggest that this is not sustainable. I guess we will see, a temporary covenant waiver from banks would help, would they pitch a fundraise at below 50p given institutional backing? Otherwise next news in July
This doesn’t make sense to me.
The company seems sound, doing great things, gaining new business, positive trading statement, so why are we at historic lows and sinking fast.
Guess we will find out….
Started: Dartron, 18 May 2023 22:51
Last post: Dartron, 25 May 2023 08:21
Im sure I copied the text below from here:
https://dwfgroup.com/en/investors/shareholder-hub/financial-calendar
But seems that there is no longer a TU scheduled. Not sure why the company would do that given the share price.
Probably will be able to grab some in the 50's I think before FY results in July.
I continue to hold.
Just bought in for the long term.
I think this company has a great future and top management with vision, so I'm going along for the ride.
The spread is too big here, which is bound to put people off
Thursday 25 May
DWF Group PLC Trading Statement
Started: FlyingHigher, 12 Apr 2023 00:14
Last post: FlyingHigher, 17 May 2023 12:20
There's no actual share price movement here, just tinkering with the ask on low volumes
I am still here, bought a lot down at this level.
Load up before the next published IC tip
It's odd that KGH has gone up so much and DWF remains unchanged, but for how much longer?
Am I all alone here? Surely time for takeoff soon? :D
Started: FlyingHigher, 5 Apr 2023 09:24
Last post: FlyingHigher, 5 Apr 2023 09:24
Good news and Fundamentally this share is way too cheap. It has been tipped by IC for 100p. .
Time to load up before it pops
Started: Dartron, 19 Jan 2023 11:34
Last post: volcano, 16 Feb 2023 13:26
only one problem here is long recession
DWF Group plc Employee Benefit Trust, 7.66% to 8.02% (27th Jan)
Ideas of the year IC 6th to 12th Jan (Issue 2/2023)
Price 82p, Fwd PE NTM 7, FWD DY NTM 7.7%, FCF NTM 8.2%, Ebit Mgn 12.2%
Six High Yielding Small caps IC 2nd to 8th Dec (Issue 50/2022) - similar numbers as above.
Master Investor write up:
https://masterinvestor.co.uk/equities/dwf-group-an-investmet-case-for-legal-outfit/
There are some 325m shares in issue, with the group’s Employee Benefit Trust being the biggest holder with 9.18%.
Other large holders include Premier Miton (5.84%), Cartesian Capital (5.48%), Abrdn Investments (4.75%), Sand Grove Capital (2.97%), Legal & General Investment Management (2.52%), Link Fund Solutions (2.48%) and Columbia Threadneedle Assets (1.42%).
(broker view) Their estimates for the current year to end April 2023 see revenues of £387m, adjusted pre-tax profits of £45.9m and earnings of 10.8p, together with a 5.4p dividend per share. For the coming year £430m revenues could see £54.2m profits, 11.9p earnings and a 5.9p per share dividend.
Master Investor rating - However, now at the current 76.75p and trading on a 7.1 times pe and yielding nearly 7%, I really do rate the shares as substantially undervalued. For early 2023 I am setting a new and very easy Target Price of 100p.
DWF doing my head in. I keep buying, cos this is going to break out. I wont have it any other way. I just keep buying and waiting. 90p coming. There is also a 1.6p Ex-dividend on the 6th Feb but I hope its broken out by then. Yawn.
For non investors chronical readers, this was in the top 3 tips for small caps of 2023 (I had already bought, but pleased to see that). Also holding KGH and RBGP as other legals. KGH results next week, might be the catalyst here, they should be good as huge buy from Ceo recently.
dwf ceo,on sky news atm.
Started: ShareSocUK, 17 Nov 2022 21:50
Last post: ShareSocUK, 17 Nov 2022 21:50
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/
Started: ragnarlothbrok, 21 Jan 2022 13:48
Last post: volcano, 10 Oct 2022 12:10
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
Started: ragnarlothbrok, 16 Sep 2021 12:20
Last post: ragnarlothbrok, 16 Sep 2021 12:20
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....
Started: ragnarlothbrok, 25 May 2021 11:54
Last post: ragnarlothbrok, 25 May 2021 11:54
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
Started: ragnarlothbrok, 29 Apr 2021 16:16
Last post: ragnarlothbrok, 29 Apr 2021 16:16
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)
Started: cascudi, 23 Dec 2020 08:18
Last post: UKInvestor2.0, 12 Feb 2021 10:23
don't understand how this is valued at more than gateley, what am i missing?
Very good results
Started: DaddyAIM, 5 Nov 2020 07:58
Last post: DaddyAIM, 5 Nov 2020 07:58
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?
Started: Dillad, 9 Jul 2020 08:48
Last post: usin, 15 Jul 2020 15:02
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
Started: sageofsidmouth, 1 Jul 2020 16:48
Last post: DogBag-Investor, 6 Jul 2020 15:32
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.
Started: aimtitan, 30 Jun 2020 16:20
Last post: aimtitan, 30 Jun 2020 16:20
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
Started: sageofsidmouth, 8 Jun 2020 14:38
Last post: sageofsidmouth, 8 Jun 2020 14:38
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.
Started: sageofsidmouth, 30 May 2020 11:55
Last post: SurreyCarrie, 1 Jun 2020 00:20
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.
I noticed yesterday's fall. I was wondering if it was worth a punt, but I suspect the fall will continue.
I smell trouble. Newly floated company. Lot's of new acquisitions probably of businesses it doesn't understand (particularly the accounts). Chief Executive jettisoned and replaced by an old timer looking to stage a come back. Good news rarely follows bad so where next for the hapless investors?