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Strong bids in auction and noticed all offers on sets were clipped off in last hour yesterday. Looks good.
it looks like they do those Directors buys on the 1st day after results, same happened last year
At 4.5p
Someone’s backing a recovery with £45K purchase
Nice to see a small recovery in NSF today.
We could get a decent bounce if/when we get definite news of a settlement with the FCA and then definite news of what is going to be a very complicated Placing and Offer.
I’m out too. Luckily at over 4p. I’ve felt positive about this share for the 12+ months I’ve been invested and have been happy to wait but I’ve lost all faith in the board. The squandering of the assets also means the squandering of the upside. Best of luck to all still invested, I really hope the board manages to lift the share price pre-raise to minimise dilution. I had to come out because I no longer trust they have any interest in doing this. Take care all.
Best of luck Johnnypc.
Thought hard throughout the day today and eventually sold up. Had a significant holding here, but fortunately my average was quite low so only a small loss. The 2 things for me were (1) FCA - my feeling is there is no chance the redress is going to be what is currently suggested by NSF. There's a reason it's taking so long and as others have said, FCA seem to be going after company's like NSF. (2) The dilution is extortionate. IMO there is little chance of this SP going anywhere but South until after the raise, when I may return.
I hope I'm wrong for everyone who is still in. GL all.
What I find amazing is no acknowledgement or mention of the risk re the self employed status of the agents and the position with HMRC. Provi noted in their report that the industry and the SE status of agents was being looked at so they must have been in some dialogue with NSF. Why is this not being noted as a potential risk, if this is challenged by HMRC the cost going back 6 years for holiday pay, pension, etc will again run into £M’s. Why do the BOD seem to bury their heads in the sand. Shareholders should be made aware of all potential risks !
Seem determined to force this type of company out. They have been criticised for missing all sorts of “bonds” etc that have gone broke that this type of company is an easy target.
Scotlee
You could be right about FCA who seem intent on disenfranchising sub prime borrowers by over supervision of the market while failing to stop the likes of LCF and Woodford losing millions for middle class investors
I am amazed the chairman is still in a job since conception August 2014 the company has managed a loss of 183m problems were there before covid ,they have vastly overpaid for company’s with shareholders money share issue at £1 now south of 5p.The following statement is more worrying in the accounts.
However, should the Capital Raise be unsuccessful or take longer than expected to execute then it is expected that the Group would remain in a net liability position from a balance sheet perspective, would breach certain borrowing covenants during the next 12 months and as a result would not be able to access further funding over the period of breach and would require waivers from its lenders. In such circumstance, the Group may fall under the control of its lenders and there would be a possibility of the group going into insolvency.
Unfortunately there will be more bad news this year the FCA are relentless and with the Amblance chasers debt companies driving out Provident they are already into chasing the Home credit division.
Sad but sign of the times
I don't think there are any of us in profit here, for sure not main 3 shareholders. Why did they vote for the Directors to be reappointed, that's another unknown. Not blaming anyone for selling. I'll stay in as I can afford to wait.
Infuriating news today! Terribly mismanaged. Few words to describe this.
I'm fully out - it's over to Amigo now.
Mariog
My hubris maybe short lived as I notice share price slipping a bit in last few minutes
No point in selling as fundamentally this either sinks or swims now and a few hundred quid either way isn’t going to matter in my case but realise that’s not the case for many on here
As before, hard to say. Best to email company to put some pressure on them to strengthen the share price. Would be nice to see some support from the directors side. If they believe in the shares issue at no less than 5p, they should buy some NOW.
I have not sold yet. Do I regret not selling at 6-5p levels? Yes, as I could buy now 30% more shares for the same money.
Share price is very depressed again and should really move back up to AT LEAST nominal 5p without any news.
Wish the BoD have something positive to announce soon to lift the share price in the coming days. Market cap is unbelievably low vs the potential.
Mariog - how do you see the £80m Placing being structured?
Slowly decreasing, just slow enough that i haven't sold.
It's not dropped as much as i first thought it would when I read the RNS but what worries me as well as dilution is the FCA haven't let go yet. I know what these buggers will do.
What is interesting here is that Alchemy, N.Utley and Marathon have not sold any shares. They still keep together almost 50% of shares and this makes me think that there might be some plan behind the scenes and their shareholding maybe won't be wiped out as we think.
Hi Smorrisjones
I’m not that sure fait with the history of the management of the business but I’m less afraid of dilution as I think the market cap will substantially recover post money so the shares you hold albeit a smaller share of the cake may end up being worth a similar amount
Time will tell of course but I hope my unnatural lack of pessimism on this subject may not be misplaced
GLA
Its quite unbelievable how poorly run NSF has been in the last 5 to 3 years. Its a complete disgrace really. All shareholders are going to be significantly diluted with the fundraise and are unlikely to ever see a return. If the company itself was appealing to others a buyout would have appeared and it hasn't. They have now wrote off a a subsidiary company that they payed millions for and are now brushing their hands. Shambles to say the least.
Hi IanB
Yes I think the big question is issue price but even at current nominal value of 5p (ie no share split) to raise £80m before expenses would require 1.6b new shares v 312m currently in issue so the proportion held by existing holders who didn’t top up would as you say be decimated though the price mightn’t move significantly as the market cap is currently distressed at £13.7m
Ian, we are aware of dilution coming for a long time already. We are trading below ordinary 5p so I understand we should see it climbing above that level in the coming weeks before capital rise.
Directors note that a material uncertainty exists regarding the successful execution of a capital raise, current and future impacts of COVID-19 and the impact of potential levels of redress and claims across the Group. The range of assumptions and the likelihood of them all proving correct creates material uncertainty and therefore the impact on liquidity and solvency under both the base case and downside scenarios may cast significant doubt on both the Group's and the Company's ability to continue as a going concern. In such circumstance, the Group may fall under the control of its lenders and there would be a possibility of the Group going into insolvency;
I read there will be an £80m placing and that will obliterate current shareholders through massive dilution?
Is there an accountant in the room?
A quick look at net assets deducting current liabilities and long term debt does I think show negative net worth of £10,801,000 but of course not a problem as long as business supported by long term facilities and has cash in bank to operate and a capital raise of eg £80m would in effect contra the non cash write down in goodwill plus bolster cash for operations. I’m happy to hold and accept risk of being diluted but of course a lot depends on finally agreed level of redress so it’s risky and as usual DYOR and GLA
I’m fortunate in tgat this isn’t a big investment for me but tgat doesn’t mean I wouldn’t like to see the shares double or treble in 12m and I know a lot on this BB have substantial holdings which in many cases are well under water so I hope you get back in the black soon and are rewarded for your patience!