Alpha Plus 5% 2024

Just noticed a couple of large purchases along with a few smaller ones at around 98/99 over the last few days. Annual report was published late Friday and quite a lot to take in and I haven't had the time needed to go through it so far as on Grandad duties. !
Has anyone got the handle of this yet and if so what was your view ?
Thanks all.

Comments

  • I have looked only quickly as I decided not to invest in this some time ago due to their losses, which increased this year due to the pandemic. It appears the bond is secured on property, and they have a parent company, however I prefer Bruntwood and Places for People as offering similar return with less risk. Property security isn't always as good as it sounds. It is slightly outside my risk tolerance.
  • I have given up for the moment trying to unravel this.

    August 2020 accounts show a loss of £30m before change in accounting policy on property valuation which is a £63m gain.

    I assume with Covid the loss for year ended August 2021 will be at least the same again although a drop in pupil numbers would presumably make this greater. At that sort of level I didn't look much further as it was above my risk tolerance for a 5% coupon.

    There is a parent company with loans between them which may add or detract from the value of Alpha Plus but I didn't unravel this as by this time I'd already lost interest.

    Feels overpriced to me. But there again I think 99% of everything is over-priced, regardless of whether equity or bonds.

    Your outlook probably depends on how cofortable you are with this bond secured on property as the short term cash flow outlook due to Covid is not great.
  • Certainly agree with the 99% overpriced. Difficult being out of the market with cash earning nothing, but on the other hand who wants to purchase over priced products. A difficult problem where me thinks patience is a virtue
  • Thanks all for comments on this and it is certainly is not an easy read of accounts. I found some of my original notes when I bought a fair few of these and I noted " it is more about property rather than being schools " which still seems to be the case. They did retire the previous bond ok and on that basis along with no overly bad/different news and large recent purchases I will continue to hold until I review it again in a few months time.
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