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Well someone has a positive view and has been buying. Makes me wonder if the big trades reported as sells were actually this lot buying more.
They would have said if FRS driven. They said prudent increase.
Possibly FRS guideline increase. That’ll need to be maintained though and not used. Any other bad debt is on top of that provision. Fingers crossed they’re ok...
Provision increased from 1.5 to 1.9%
Great statement ! It’s bad debt that cripples this sector and 2008 gets soon forgotten They had very low provisions in last years accounts. Time will tell...
"The Board believes this portfolio performance is testament to three key factors; first, the Group's cautious approach to risk; secondly, the spreading of risk across multiple industry sectors; and thirdly, taking appropriate security and then assiduously following up with credit control disciplines in respect of arrears and impairments in order to generate recoveries from the security taken. Furthermore, the net write-off rate continues to reflect the historical trend of resilience in the UK SME sector experienced by the Group in providing finance to smaller SMEs for what is business-critical equipment for those borrowers."
They have proper risk governance and base provision on actuals and their provisions are always higher than the actuals.. like Hazrat says, they are gradually increasing provisions but that's just extra prudence not from necessity. They also seem to be particularly effective at recovering any bad debt.
This sector runs at nearer 3% not 1% bad debt. They haven’t upped their provisions. Why don’t you see it increasing ?
Also, we have already had a profit warning!
Market is pricing catastrophic levels of bad debt at the moment which I don't see materialising. Provision has been ticking up, probably further to go as well. As I say, devil will be in the detail on 24th September. Hopefully there will be some positives to come out of it following a light on detail and negative trading update.
Let’s hope so. But a profit warning will plummet this share. There’s been large growth in this company and what follows in this sector is bad debt. They need to up the provisions imo and prepare for the rainy day that always follows. Look at Funding Circle SP - massive growth in a volatile sector that’s swamped with specialist lenders...
..Enjoy you're moment of mirth! Back to 40+p by Xmas so great Buy opportunity imo.
Great belief in the company, you make me laugh.
Exactly! And that is why we have been in a closed period since 25th June. Got it! There is a great belief in the company and there will be Buys following results...I believe. ;)
Results are due 24th Sept. Read the last RNS
The results are due 20th August from financial info above. 6o days before is 21 June so we definitely are not yet in the close period for another 12 days. ggplyr was barking up the right tree but did not quite go far enough. In any event the shares are ridiculously cheap
Why do you think it is a closed period? This is what I found about when directors can trade which doesn't imply it is closed currently. https://www.pinsentmasons.com/out-law/guides/the-model-code-on-share-dealing
Take my word on it..the Directors cannot Buy or Sell at this time. There will be Buys in due course. Atb
What makes you say it's a closed period, it's normally within 2 months of the results and those aren't until 24th September ?
Directors are unable to invest at this time due to it being a closed period...as soon as the period is open, expect buys.
There are so many "fintech" SME lenders coming to market which makes for a very competitive landscape. I reckon the lack of growth this year is driven by that competition. However, unlike nearly all, if not all, these fintechs, Opm does make a very healthy margin.
All Opm has to do is relable itself as a Fintech company and it will assume a stupid valuation, much like Funding Circle, and we will all be rich. So come on management, new name, some chat about market disrupting tech platform (just have a decent website should be enough) and off we go.
Agree. Mr Russell is a major shareholder and has been from day 1. No doubt provided original funding. The rest of the board show be the ones showing confidence and investing
Headroom in facilities is great, but they are effectively loans from banks that need repaying. Its not 1:1 funding, it’ll be 85% at best. Therefore, strong cash flow and minimal bad debt is a must.
Their previos reports indicate that they have sufficient headroom in current facilities to fund any future growth plans.
Ron Russell already has handy stake
all fine, but growth will need to be funded by equity, no?
& dilution ain't great for sp