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Corporate insolvencies rose 5% to 1,769 in January. 2.5% higher than January 2019 (1,726)
Indeed. Has started to creep up nicely. I have noticed that the number of Administrations is now (finally) starting to accelerate and that is very much FRP's specialism.
Bit of share price activity today at last.
In an economic situation in the UK which should ideally suit FRP Advisory's talents, the SP movements remain a continuing disappointment to shareholders. Hope to see some improvements here PDQ.
£2m buy just went through. Unusual and interesting....
Kindly verify if this is the company Rob Cooper has joined before investing. I may be mistaken, and I apologize if I have caused any concern. Please review the chat and form your own conclusion regarding whether it is the same person. If not, I apologize for any unnecessary worry.
Following their initial public offerings (IPOs), the majority of the Big 4 accounting firms have separated their insolvency divisions due to conflicts with their audit clients. These newly established and formidable spin-offs now directly compete with FRP for major lucrative projects. While FRP previously disclosed market share data, they have chosen not to do so this time. It is likely that these new competitors will gradually erode FRP's market share, and this trend is expected to persist.
According to Shares Magazine, insolvencies are expected to rise starting from October 1st, following the cessation of government assistance for struggling companies. Only time will tell, but FRP could potentially benefit from this situation, leading to good business opportunities.
The dividend payment was slightly delayed, but it was received on the 22nd.
The economic big picture is absolute perfection for FRP, BEG and MANO. Would like to see FRP addressing the smaller CVL cases, as well as their undisputed expertise in Administrations. Then this company could be an enormous restructuring and insolvency outfit.
Ok - so the share price fell from about 155 at the start of the year to 108 a couple of weeks ago on very little news of note and now today it is back at 130. Begbies meanwhile hardly moves.
The UK Government’s Insolvency Service stats published last week, shows FRP still just about the number 1 Administrations appointment taker but Begbies and Quantuma are now just a few cases behind them. Very different picture to a year or two ago, when FRP was very far in front of any other firm. I think the FRP IPO has possibly served to highlight the high margins in FRP’s niche of larger, more complex Administrations and their competitors are now going aggressively after that segment.
Additionally - the Big 4 accounting groups have/are spinning off their insolvency arms so those newly independent entities can pitch for previously conflicted appointments. FRP used to have the pick of those as they were never conflicted as they were never part of a big accounting/audit group.
I like the FRP business and team, and the macro picture is excellent for them, but the share price needs to reflect these important new competitive factors before I am tempted to invest.
I would also like to see FRP attack Begbies and Quantuma’s core area of liquidations - lower value but much higher volume appointments. That is THE particularly buoyant area of the insolvency market. Administrations are actually lower year on year, at the moment at least. This would also make better use of FRP’s large overhead structure.
As ever, just my opinions, DYOR of course.
FRP Advisory Group PLC - London-based business advisory firm - Non-Executive Director David Adams buys 100,000 shares at GBP1.1782, worth GBP117,820, in London on Monday. Adams is now interested in 412,500 shares, 0.17% stake.
https://www.marketscreener.com/quote/stock/FRP-ADVISORY-GROUP-PLC-104092382/news/FRP-Advisory-Non-Exec-Director-Adams-buys-100-000-shares-43242718/
Indeed….a good few institutions who bought at 140p will be spitting feathers!
It certainly has a strange feel about it, though nothing mentioned in the Feb RNS. "The medium-term outlook for all of our markets remains positive."
I would have though directors would be buying at these levels. The sells in June 2022 at 140 look shall we say well timed.
This share is down 32% in the last few weeks. Big off market sells at 110p late yesterday. Their recent RNS hinted at trouble ahead. More clarity now needed from this Board methinks. As ever DYOR.
If/when I look to get back into this sector I think I'll be looking at BEG as they do lower value stuff and seem to be the market leader
Since their IPO, most of the Big 4 accounting groups have spun off their insolvency divisions because of conflicts on their Audit clients. Those very strong spin offs now compete head on with FRP’s for the big lucrative jobs. FRP used to announce market share data but do not this time. I suspect those new competitors will be eating into their market and that will continue.
Rather underwhelming results. Average revenue growth, weak profit and dividend growth, margins down. Lots more staff and little to show for it. Timed my exit badly but happy to be out.
Please check if this is the company he has moved to before you in vest I my be totally wrong if sorry my appogoies its rob cooper venture capital read the chat,come to your own conclusion if it's the same person if not sorry for worrying you
Whoops!
I sold out this morning. Costs outstripping revenue and only inline with very modest growth forecasts for this year. Better value on offer elsewhere. I like AGFX if others are looking for another financial services stock.
Agreed Yuri.
Personnel costs are 62% of revenue. Almost as bad as a football club !!
But this is the problem of converting a partnership into a PLC. The Partners want it all: shares AND big pay.
Plus FRP’s part of market (Administrations) is in decline (22%) even though Liquidations (Begbies and Manolete) is up 100% plus.
We saw what happened to Tenon and Vantis - both failed in the 2000s after IPO. FRP literally is the old Vantis business under a new brand….not saying the same will happen as they have a good team now but they are in the wrong market segment.
They do look statistically resilent but today's results don't show growth built into sp (currently well too much overpriced vs any of their historical profit points). And without growth it is not a good return on capital.
Their revenue increase is impressive, but they way costs are spiking - is very worrying (well above inflation and expected cogs levels)
Let's just hope it's temporary one-time thing.
Think this is one of my favourite investments on LSE right now;
"FRP is a resilient business, with a track record of growth regardless of economic conditions. We have a strong balance sheet and a structure that provides a good level of flexibility in our internal capacity nationally, allowing us to be well positioned to service an increase in demand for our advice from diversified sources."
In demand regardless of what happens with Covid, gas prices, petrol shortages, Brexit repercussions or indeed anything else that comes our way over the winter. The fact they pay a quarterly dividend is an added bonus!