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...but an updating RNS would certainly help!
....now it is clarified that we have NOT sued our own solicitors!
Surely we should have had an RNS?
It doesn't help that Trading 212 have capped a MANO allocation to just 554 shares, so it's all one way traffic now.
At a guess: possibly it’s their former brokers Peel Hunt clearing out their stock of Mano shares as it’s now transferred to Canaccord. Nothing unusual if it’s that.
I believe it has closed at an all time low. This when they have never had a greater work load. Seems a bit bizarre
Sorry
"Taylors Solicitors" not Partners.
Streets
SH are the corporate lawyers.
Taylor Partners are an unknown entity and my question was are they a firm that acted for Mano? If they were its not a good sign IMHO. If not why is Mano suing them as it doesn't, at first glance, seem to fit the business model of assignment from liquidators?
Probably nothnig to worry about.
Why do you think Taylors are their solicitors? It says here
https://investors.manolete-partners.com/investor-information/registrar-and-advisers
that they're Stephenson Harwood.
I'm interested to know how you came across this info?
It would appear so and if correct, they must have a very good reason! Won't do much for the sp. Just what us shareholders need!
I see Canaccord have been appointed brokers. I suggested this might be the case back in November. it was clear that Peel Hunt has lost interest. I think this is (small) good news. It's good to have a new broker to talk about the stock. It was too small for Peel Hunt and they had lost money on it (theirs and their clients) so the salesmen lose interest and stop talking about it. Should be some new vigour from Canaccord. I guess they will publish a report with the trading update with some new forecasts. The numbers will be lower than Peel Hunt's stale forecasts (still up there on Refintiv) but that shouldn't be a surprise. I say "shouldn't" but you never know. I think it might well be interesting after that. I'm not sure I'd risk it going into that.
(Maybe Canaccord have already published - I haven't seen anything)
HTTps://caseboard.io/cases/2b9a992f-890d-42c1-9375-b030801f26fd
;
...a Trading Update soon. The prospects in this co's business is terrific and is at present not reflected at all in this
SP. I am quite underwater here so hope for a pretty massive turnaround. No more averaging down!
From YE19 to 09/23 the company has absorbed £21.7m of cash, going from net cash £9.7m to net debt of £12m. The cash has been used to grow investments and absorbed into the working capital cycle.
During this period Net Assets have grown from £32.2m to £65.3m - an increase of £33.1m / or £7.35m PA. This equates to a Compound Annual Growth Rate of 17%.
Current ‘Market Value’ is £63m, it gives me comfort that the TNW is growing and is higher than current Market Value.
Trade and Other receivables (Asset)
2019 £3.8m
2023 £24.3m
Owed an extra £20.5m
Trade and Other Payables (Liability)
2019 £4.2
2023 £12.5m
Owe an extra £8.3m
Working Capital has been negatively impacted by £12.2m during this period - which explains where a significant amount of cash has been absorbed. This doesn’t overly concern me as they are undergoing an expected growth period, at some point this will plateau and cash will stop being absorbed to such a degree into the Working Capital Cycle.
‘Investments’ during this period has risen by £21.2m from £18.2m to £39.4m reflecting the increased investment and growth strategy and a good pipeline for the future. I expect this rate of growth to increase in the coming years as larger cases and more opportunities are emerging.
Within this £39.4m is £13.5m of ‘Non-Current’ assets relating to the ‘Cartel Cases’, as it was ‘Non-Current’ I presume the earliest in which they see this to be settled is H1 2025. This cash will help alleviate the current reliance on the HSBC revolving credit line / improve the net cash/debt position.
Annual realised revenue from FYE19 £7.148m to FYE23 £26.79m is an annual compound growth rate of realised revenue of 39.14% during this 4 year period.
Areas to monitor;
1. Bad Debts. £0.4m for the latest period and £1.5m FYE 03/23.
2. Increasing interest/ financing costs, at full utilisation this would equate to £2.5m per annum (this alone if paid as a Dividend would equate to a 3.8% return versus current market value). They need that Cartel money in to reduce the debt requirement in the short/medium term. If the Cartel money doesn’t arrive in the next 2 years I think they’re could have an issue with cash flow required to fuel the growth trajectory.
3. Fluctuations in ‘Case Fair Values’; For the latest 6 months they have devalued by net £2.3m equating to roughly a 8% devalue in one half year, this follows a similar net amount of £2.4m FYE 03/23 and £2.7m FYE 02/22. I hope they’re being prudent for the short term and this doesn’t become a regular trend - however a net devalue of Case Fair Values (excluding Cartel Cases) of £7.4m over the last 2 1/2 years isn’t ideal and worth monitoring and continuing to question.
4. Increasing staff and admin costs / Margins.
I’m satisfied that demand will continue to increase and they’ll be presented with bigger sized opportunities in the next few years. I’m confident of the
The £12m debt, cost of salaries and without a little divi to keep shareholders hopeful all hasn't charmed the market.
MANO are too often too bullish in their reporting. I just rechecked Refinitiv and Peel Hunt still haven't changed their (hopelessly wrong) numbers since July last year though it says they reviewed them in December. I can't see any mention of Canaccord following the stock on Refintiv - does anyone have any info on that?
There will presumably be a trading up date at the end of March but there's no guarantee there will actually be clarity on the actual numbers just more positive nosies from Cooklin. For the actual numbers we have to wait until June.
The Interim RNS of Nov17th last which was pretty positive in the light of latest economic news for UK business (terrible, which isexcellent for Manolete) and am at a totlal loss to comprehend how cheap our SP is. I knowthemarket hereis pants but I reckon these will rocket when the noxt figures come out in a few months.
It's all been one way since Tuesday last week - selling (in small numbers) at c150p.
And today.
But then there was no obvious reason why it went up before.
Don’t suppose anyone has an idea why?
Tommy - my understanding is that it is the same legal process on a small case v a bigger case. Economy of scale - roughly the same kind of work needed. Certainly the costs will be bigger but not linear. Same I believe on the initial payment: from what I have seen they pay more for a bigger case but nowhere near linear. Bit like the fees in the M&A market: you will always want to work on a £100m takeover rather than a £5m takeover because (broadly) its the same work for a much higher fee. I have heard that analogy in the Law. Makes sense to me.
Forensic, what makes you say the business is operationally geared?
Mano have said this themselves, but it’s not intuitive to me. Presumably bigger cases have bigger purchase costs, higher legal fees, etc. Plus a larger share typically goes to the estate. Where’s the gearing?
Yeah I also don’t buy the idea that IPs are raising their demands. Mano are dominant in this space, by far the most prominent and successful funder to work for. If Mano called their bluff they’d be stuck.
The definition they use of Money Multiple is:
MoM Money Multiple is the Gross Proceeds less the Insolvent Estate's share of the Net Returns, divided by the sum of the upfront payment to the Insolvent Estate and total legal costs and other expenses of the claim.
So maybe more akin to operating margin? But yes there will be costs and expenses not counted in the denominator (not clear where the IPs share goes in this equation??)
The bigger issue is that the amount of money that they are actually earning this return on is relatively small. The promise of the IPO was that it would grow rapidly but covid set that all back; so in that regard we’re back to square one.
But Streets, the same "cost of running the business" applies to a PE/VC operation.
Mano seem to be rapidly building the pipeline of cases, following the two year Covid hiatus. The business looks highly operationally geared (so overheads stay stable, rather than variable, as the gross profit increases) and they say they have added inhouse lawyers already to accommodate much higher current and forecast volume.
You are right to point to the smaller cases (a point they highlighted last week) - as the first wave of cases post Covid were the smaller zombie companies. Administrations of the bigger companies now coming through, where the margins likely to be higher.
Interesting point about Arrow but I dont know that story. If they were buying debt (rather than claims) that would be a far more competitive space than buying insolvency claims where Mano seem to be the very dominant player in their sector (eg only one voted Band 1 ever by the legal industry's Chamber Guide, that I know is well respected).
Good debate. Thanks.