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First Iāve noticed for a while a number of mid market price trades in 100,000 and 200,000 lots
Think all we need is news to help this share break out of its narrow range
Matter of days and will be in 8-9p range. We just need to be patient.
Agreed Mariot, I think people think this will drift back down due to such an increase but this started rocketing on the 23rd, buys out weighing sells keeps me happy :-)
Wish we could see some unexpected TR1 or directors buy. Reaction to such news would be huge. JPM staying around risky Amigo makes me think that the 3-4% TR1 is possible.
Iām invested heavy in both, expect this month to be interesting, if not this Month next Month fore sure.
I moved all from Amigo here. Lower possible return, but risk is significantly lower too. Hope your Amigo will get good news, but bear in mind, it is kind of binary bet, regardless of names buying before the verdict.
Agreed, Iāve hedged my bet to mitigate the risk.
Hi All
What news does this company have in the pipeline.
Looking at getting in
Main event is the FCA guarantor loans sector review and if the estimated 15.8m redress will be confirmed by FCA. If yes, the company will be looking to raise capital (probably rights issue) with Alchemy, main shareholder to strenghten its balance sheet to have rights to use the 200m securisation facility (for new lending or expansion). As you can see market capitalisation is very low vs the 5m+ net cash generated monthly. Personally I cannot see any capital rise to happen at this share price level. I think it will be announced once sp recovers to 15p level and then with rights issue in Q2 you never know. Some institutions or funds can be loading up to secure rights to buy shares as the 49-99% APR business is sweet enought to be in once economy gets stronger after COVID19. It is an undervalued share no questions about it. Bit in a shade od Amigo or Supplyme nowadays, but maybe it is its main strength. Half of the directors board have been previously working at Provident so I feel they know what to do.
Thanks Mariog
I appreciate that and will buy on any dips
Forgot to say. From this what I understand the board is expecting FCA response to be received within 0-30 days
Funding
The Groupās debt facilities currently include a Ā£285m term loan facility (the āTerm Loanā), provided by a group of institutional investors, led by Alcentra Limited. The Term Loan, which is not repayable until August 2023, bears an interest rate of LIBOR plus 7.25% per year with interest payable every six months. In addition, the Group has a Ā£45m revolving credit facility provided by Royal Bank of Scotland at an interest rate of LIBOR plus 3.5% per year. Both facilities are fully drawn and while the Group has continued to operate within the financial covenants on both facilities, in the light of the material uncertainties outlined above, it is in active discussions with its lenders regarding possible future covenant waivers.
The Group also has a Ā£200m securitisation facility that was put in place with an initial drawdown of Ā£15m during April 2020. Whilst the onset of the pandemic resulted in the Group breaching certain performance triggers on the facility during the first half of 2020, the drawn amount was repaid on 26 August 2020, removing the outstanding breach. While the facility remains for potential future use, current cash balances mean that there is no requirement for further borrowing at the present time and the prevailing covenants and the requirement for lender consent mean that the facility would likely remain unavailable in the absence of a further capital raise.
Redress
Having formulated a detailed redress methodology in conjunction with its advisers, the Board has made an associated provision totalling Ā£15.8m in the 2020 half year results. While this represents the Directorsā best estimate of the total cost of settlement of redress amounts due to affected guarantor loans customers, the Group has yet to agree its methodology and analysis with the FCA. The Group is continuing to engage with the FCA and is focused on reaching a conclusion as soon as practicable when a further announcement will be made.