The unwinding of pandemic-related support schemes comes at a tricky time for UK plc, with newly published Insolvency Service figures showing a 79 per cent year-on-year increase in company insolvencies in May, the 13th successive month in which insolvency rates ticked up.
Little wonder that listed insolvency practitioners have outperformed. Shares in Begbies Traynor (BEG) and FRP Advisory (FRP) are up 10 per cent in the year to date. The latter floated in March 2020 just as markets were reacting to the threat of Covid-19, although fiscal stimulus measures meant investors’ worst fears never materialised.
FRP sold £80mn of shares through its IPO, with selling shareholders (the firm’s partners) pocketing £60mn and the company raising £20mn in new money to fund acquisitions. It has since done five deals, increasing headcount and strengthening a corporate finance arm that should help to make earnings less cyclical.
The shares were first listed at 80p and briefly doubled to 161p last month. The company announced a placing on 15 June at 140p a share – a 9 per cent discount to the previous day’s close – through which existing shareholders sold a further £39mn stake and a further £7.5mn of new shares were issued.
Chief executive Geoff Rowley cashed in £2.6mn and chief operating officer Jeremy French £2.1mn. Rowley said the placing allowed the firm “to introduce new institutional shareholders” to the register, as well as strengthen its balance sheet to potentially fund more deals.
Buys | ||||
Company | Director/PDMR | Date | Price (p) | Aggregate value (£) |
Alphawave IP | Sehat Sutardja * | 10-16 Jun 22 | 147 | 2,331,875 |
Asos | Jørgen Lindemann (ch-d) | 16 Jun 22 | 854 | 490,277 |
Asos | Patrick Kennedy | 16 Jun 22 | 810 | 242,895 |
Aveva | Caspar Herzberg (PDMR) | 10-13 Jun 22 | 2,406 | 96,220 |
Cloudbreak Discovery | Samuel Hardy (ch/ce) * | 15 Jun 22 | 3 | 75,000 |
EnQuest | Amjad Bseisu (ce) * | 09-1 Jun 22 | 28 | 448,224 |
First Tin | Thomas Buenger (ce) | 10 Jun 22 | 19 † | 93,969 † |
Halma | Tony Rice | 16 Jun 22 | 1,922 | 58,847 |
Johnson Matthey | Dr Jane Griffiths | 10 Jun 22 | 2,051 | 51,269 |
JTC | Iain Johns (PDMR) | 14 Jun 22 | 633 | 78,620 |
Literacy Capital | Christopher Sellers | 10-14 Jun 22 | 401 | 200,500 |
LondonMetric Property | Alistair Elliot | 16 Jun 22 | 236 | 118,000 |
M&G | Kathryn McLeland (cfo) | 17 Jun 22 | 198 | 248,748 |
Marston's | Nick Varney * | 7-10 Jun 22 | 57 | 83,931 |
Neometals | Christopher Reed (ce) | 14 Jun 22 | 57 † | 57,277 † |
Next | Michael Roney (ch) * | 16 Jun 22 | 5,710 | 171,299 |
Ocean Wilsons | Andrey Berzins | 13 Jun 22 | 964 | 77,125 |
Peel Hunt | Steven Fine (ce) | 17 Jun 22 | 112 | 112,000 |
Peel Hunt | Sunil Dhal (cfo / coo) | 17 Jun 22 | 112 | 112,000 |
Quilter | Glyn Barker | 10 Jun 22 | 112 | 99,254 |
SSP Group | Patrick Coveney (ce) | 14 Jun 22 | 229 | 114,255 |
Workspace | Stephen Hubbard (ch) | 13 Jun 22 | 649 | 115,911 |
Workspace | Nick Mackenzie | 13 Jun 22 | 636 | 78,864
|
Sells | ||||
Company | Director/PDMR | Date | Price (p) | Aggregate value (£) |
FRP Advisory | Geoff Rowley (ce) ** | 15 Jun 22 | 140 | 2,647,306 |
FRP Advisory | Jeremy French (coo) ** | 15 Jun 22 | 140 | 2,117,844 |
Hargreaves Services | Roger McDowell (ch) | 10 Jun 22 | 568 | 113,600 |
Investec | Marc Khan * | 17 Jun 22 | 450 | 337,245 |
Jubilee Metals | Dr Mathews Phosa | 09 Jun 22 | 15 | 225,000 |
Kosmos Energy | Roy A. Franklin | 13 Jun 22 | 585 † | 121,310 † |
Serco | Mark Irwin (PDMR) | 10 Jun 22 | 183 | 337,122 |
Strategic Equity Capital | Richard Hills (ch) | 15 Jun 22 | 292 | 94,899 |
*Spouse/Family/Close Associate. ** placing / open offer † Converted from € / $ / A$ |