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Yes a Capital reorganisation Would be required To raise below nominal. Only 312m shares here though so Highly unlikely If impossible. . Older its on the main market not AIM. No skin of my nose as I’m all but sold Fortunately as i was spooked by delay - out Ive just kept a grand in as i think Positive news on the 200m securitisation which is purely to grow the loan book will see a rise back above 10p - look at amgo last 2 days, all doom mongers at 5p price, now 13p. Wont take much imo. They are far better raising equity for growth at a much higher price but who knows.
That is true, Ian.B, and I understand the theory. But in practice, let me give you the example of TRX (10 june):
"The nominal value of the Company's shares is currently 0.5 pence which is higher than the Issue Price. As the issue of new ordinary shares at a discount to the nominal value of those shares is prohibited under the Companies Act 2006, it will be necessary to undertake a capital reorganisation ("Capital Reorganisation") to enable the Company to issue new ordinary shares in the future (including the New Ordinary Shares) at a price which is less than the current nominal value of an existing ordinary share.
It is proposed that each of the Existing Ordinary Shares be sub-divided into:
(i) one new ordinary share of 0.1 pence each in the capital of the Company; and (ii) one deferred share of 0.4 pence each in the capital of the Company."
As I said, it would need a special resolution and a share split, which I used to think was unusual...
The par value of stock has no relation to market value and, as a concept, is somewhat archaic. The par value of a share is the value stated in the corporate charter below which shares of that class cannot be sold upon initial offering; the issuing company promises not to issue further shares below par value, so investors can be confident that no one else will receive a more favorable issue price. Thus, par value is the nominal value of a security which is determined by the issuing company to be its minimum price. This was far more important in unregulated equity markets than in the regulated markets that exist today, where stock issuance prices must usually be published. The par value of stock remains unchanged in a bonus stock issue but it changes in a stock split.
Are you sure NSF cannot issue shares below the nominal 5p? I've seen at least two examples (only in the last few weeks!) where companies issued below their nominal value via share splits and special resolutions... also, having followed NSF boss JVK, I think it's likely he'll go big, placement AND rights issue, involving everyone and anyone! AIMHO
"Non-Standard Finance, the troubled doorstep lender, is in talks with investors about an emergency cash call for an estimated £40 million." So 40,000,000 @ say 5p = 800 million shares with a current shareholding of 312 million. You do the maths....
Well Someone’s buying big. 2mil buy yesterday in the 8p,s - , today a 1mil and 750k buys In the 7,s
Listened to presentation, I’m not an expert in this field and def didn't work in the industry ... I dont think they are in any danger of Them going bust, not even close.. He ****ed up highlighting “note the going concern danger” In the headlines. most Fy reports have. Going concern warnings in the small print... There is a business in there if they can sort themselves out.
Only a small hold for me. Sold most due to delay. May add Back if they make positive noise on ARES renegotiation, which is quite likely
Cheers Investring. Interesting that they Furloughed EDL Staff (Flagship of NSF imo) but only 2 in HC ? Would this mean they are looking for Buyers of HC (Bought it for £86m making £5m/Annum Profit and £7m 2019) and thus Maintaining Structure through these difficult times was their Priority ? There must be a specific Reason why No HC Staff Furloughed... Because they clearly could have re the Headcount to Customers (Headcount went up from Purchase but Customer Base is slightly less and Technology exists now).
Regarding forbearance I understand it to mean arming oneself against defeat / loss, I’m glad you pointed this one out fastfood because I can’t see much of it in regards to the performance. I was in this industry for 25 years and always kept a tight reign on credit granting. Little and often drip feeding loans is the only way to go on sub prime lending and the bigger the spread to more customers will limit the losses overall, rather than throwing big money around to a minimal base of customers. It’s like betting each way on a 20-1 outsider in a horse race with 25 runners,I would rather bet on three 7-1 separate horses than risk the 20-1 shot. In my opinion you are posting to the point valid comments.
Wonder what Neil Uttley makes of all this ? Accumulated to 7%. Woodford Sold out at 40p so they cannot blame him. Difficult times. Hope the Company re sets and starts to recover the SP. But you don’t delay Results only to announce you are considering an Equity Raise / which they know will Tank the SP to dangerous levels. Maybe they have a Cautious approach and that would be Valid under circumstances / but back it up with a Short Term Strategy to get to Next Summer. That’s what the Market was wanting to hear. If NSF can get through this period (Next 12 Months) intact / The Company can deliver Returns again.
Investeing. The Report clearly shows Loans over 1yr Term account for less than 15% of business. Bulk of Loan Issue in HC is 7 Months. What I can’t get to grips with is / They took on all of PFG Fall out Agents in 2017 and still only punch a £7m Profit. Money to burn. However they have Invested heavily in Forbearance and Technology.
Management knows how to handle loans and customers , they are probably the best out there at this . However they don't seem to be good at handling the city and investors. Trying to take over provident , the ares loan and flagging up a possible rights issue with the company on its knees are prime examples . They need to consolidate , forget dreams of the future and steady the ship , or someone else will pick this up and do just that .
Yes and we all know that in the sub prime home collect market the customers like to be drip fed loans on a regular basis. Possible outcome
1. Customer accumulates arrears 2. Customer requests a separate additional loan 3. Customer gets refused additional loan 4 . Customer not happy 5. Customer reduces the agreed terms on existing loan or stops paying altogether. These 76 week loans are usually for a larger amount resulting in bigger losses for the company. Cast your mind back to 10 or 12 years ago and see what happened to London & Scottish home credit, this went belly up due to the length of the loans. What are compliance in all of this and who is monitoring the application process ?