2604: Steven Cooklin of Manolete Partners: Current Environment is “Perfect Storm”

Steven Cooklin CEO of Manolete Partners: Current Environment is “Perfect Storm” with Record New Cases “The highest level of UK insolvencies for 30 years” “The UK insolvency market was fully rehabilitated (in 2024) from the temporary two-year suppression of insolvencies that the Government had enacted during the Covid-19 pandemic. Significantly higher interest rates, heightened concerns over geo-political conflicts in Eastern Europe and the Middle East and the withdrawal of the large scale financial support provided by the Government to UK businesses during the Covid-19 period, has resulted in the highest level of UK insolvencies for 30 years. Insolvency Service statistics from January 2024 show the number of Creditor Voluntary Liquidations, the largest constituent part of the UK insolvency market, in 2023 was at its highest level since 1960” Manolete Partners - Trading Update Summary: - FY24: 311 new case investments, 18% higher than FY23's previous record of 263 - At year-end Manolete had 418 live cases in progress vs 351 at FY23 - H2 of FY24, the Company signed 20, £1m plus size cases - FY23's new case enquiries were 692. For FY24, the Company recorded 731 new case enquiries. - In FY24, Manolete completed a new record number of 251 cases, 31% higher than last year's previous record number of 192. - Manolete delivered a 26% increase in overall revenues for FY24 to £26.3m (FY23: £20.8m) - The Company expects to report, subject to audit, a PBIT of around £2.5m for FY24. This compares to the PBIT loss of £(3.1)m reported for FY23. MY OPINION ON OUTLOOK If Manolete achieves 400 cases and they revert to 2021’s value of £180k per case, they could be generating pre-tax profit of approximately £21.6m. Put this on a multiple of 10 and this would mean 250% upside on their current valuation. ----------- To become a member visit: https://www.sharepickers.com/subscribe Some of the benefits of being a member of the SharePicker Investment Club:  *** The UK’s only MicroCap League: 100's of potential small cap investment ideas analysed and scored in relation to their growth, value, health, efficiency, momentum & potential.  *** Free Investment Book: How to become a MicroCap Millionaire (3 Step Strategy) by Justin Waite.  *** Weekly Live Webinar: Justin analyses potential investment ideas, fundamentally & technically. He discusses his own holdings together with portfolio management and other aspects of investing.  *** Blog: Justin will post a blog when he invests in a new company, on the day he invests.  *** My Watchlist: This is a list of companies Justin think's may have some decent investment potential.  *** Stock Requests: Members suggest stocks to be analysed on the webinar.  *** Company Analysis: Website based research function using the most important metrics that move share prices.  *** Targeted News: Access to news from small companies releasing significant news.  *** Resources: Learner videos on income statements, balance sheets, cash flow statements and charts plus spreadsheets to help you personally analyse companies.  *** Chat: Access to the Club's chat group.  For more information on the SharePickers Investment Club visit below: https://www.sharepickers.com Twitter @SharePickers https://twitter.com/SharePickers  LinkedIn https://www.linkedin.com/in/justinadamwaite/  NOTHING IN THIS PODCAST IS INVESTMENT ADVICE. INVESTING IN THE STOCK MARKET, ESPECIALLY SMALL COMPANIES CAN BE VERY RISKY. PLEASE DO YOUR OWN RESEARCH OR IF YOU ARE UNSURE PLEASE SEEK PROFESSIONAL ADVICE FROM A REGULATED ADVISOR.