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It's good to see that the cash in May 2021 was £101m. The loan book has fallen to £258m. But that gives total assets of £359m (before FCA provision) against borrowings of £330m
The report loss at £35m is a bit higher than I was expecting.
Otherwise no huge surprises here, but I have only skimmed results and will read through in more detail when I have time.
Now I would like to see some directors buy RNS
Think that was someone with not many shares but DMA trying a tree shake with circa 37000 shares :-) but all gone in a few minutes now only MMs proper offering to sell any only 1 sub 5p thats SING @4.80
Straight back into auction. Looks like a few PIs with DMA trying to push offer right down with very small lots (5000@4.50) but cheapest MM proper Winterflood securities (WINS) not selling less than 5p.
Nothing new in RNS today. Sp will drop initially to churn out newbies and than back 5p ish.
Relax or sell man. You knew the loss will be big if you have spent some time reading prior news. Mcap is very low as the company if trying to bounce off the lows.
That capital raise now makes a lot of sense, but will unlock a lot of possibilities too.
Johnny, so do I.
RNS's don't get much worse than these. Let us see, maybe not 50% down but I know i will be 50% down from when I first bought in.
I reckon straight into auction.
In the prior year, the Group incurred GBP80.6m of exceptional costs that comprised: GBP12.8m of costs related to fees and other costs associated with the lapsed offer to acquire Provident Financial plc as well as the related proposal to demerge Loans at Home; the write-down of the value of goodwill associated with Everyday Loans of GBP44.8m; the write-down of the value of goodwill associated with the Group's Guarantor Loans Division of GBP8.6m; and the write-down of the value of goodwill associated with Loans at Home of GBP12.5m. A remaining GBP1.9m of exceptional costs relates to management restructuring which took place across the divisions in 2019 (Loans at Home totalling GBP0.2m; branch-based lending and guarantor loans totalling GBP1.1m; and the removal of a Director within central totalling GBP0.6m)
Loss bigger than expected, but trading ahead of budget and cash in the bank grown shows profit surely? Not sure why you expect a 50% drop...hope you're wrong.
But Clintek, the only new news is the run off - and is that so bad to half the share price?
Johny. How will the market react.
My shares will be less than half the value of now. Bad day for NSF.
Big loss, extortionate raise and subsequent dilution, FCA havent finished with them, Managed runoff of GL division.
i'm switching off and hoping they can improve their position within a few years. I'm already down too much to jump ship.
Big loss looks bad, but not unexpected. I think you're right mariog in the trading ahead of budget sentence being a big plus and also note that cash in the bank has increased. It's that extortionate raise and subsequent dilution that's worrying me though. Wonder how the market will react...
5p new floor. ffs Mariog.
the impact of the pandemic and the regulatory-led changes in guarantor loans has meant that the division is being placed into a managed run-off.
"Once our regulatory issues are resolved, we intend to execute a substantial capital raise in the region of £80m (the 'Capital Raise') in the third quarter of 2021. If successful, it is expected that the Capital Raise will strengthen the Group's balance sheet and provide a platform for controlled growth.
Loss is big as it reflects a write off of Guarantor Loan business. Other two segments will be the core business now. Actually GL never was core, but it messed up only here. For me the news are expected.
Price moved to 5p yesterday. Wonder if this will be the new floor.
Good to see GL business to be closed. Similar move as Provident did recently.
Big loss but low share price is reflecting the current state of events.
Cash higher as of now than at end of December. Capital rise to happen. Capital rise to unlock 200m securisation facility and allow company to extend Term Loan, which is good news.
"-- Current trading: month on month growth in loan issuance in both branch-based lending and home credit, combined with historically low impairment, has meant that the Group is trading ahead of budget."
The key word to look for tomorrow is to see if the group is profitable from start of 2021 or not.
FY 2020 results tomorrow.
NSF is a complicated business and 2020 was a massively complicated year. We are going to see a big Statutory loss as they write off any remaining goodwill and intangibles. £50m loss?
It's probably best to focus on 2 things - (1) what is the tangible NAV? (total tangible assets minus the borrowings) and (2) what was the cashflow?
My expectation:
Total assets - cash balances circa £80m + Loan book of c. £290m = total c£370m (but we might see some heavy write-downs on the GL loan book).
Total borrowing - Term loan (-£285m + RBS facility (-45m) = £330m
NAV = £40m? (before FCA redress provision of £16m)
Cashflow (Revenue minus admin expenses + finance costs). Hopefully positive.
Revenue £165m minus Admin costs c £100m + finance costs c£30m.
All just my own back of a fag-packet jottings. Happy to be corrected.
Bid even !
Fingers crossed man. Hope the February news are kind of repeated and it will jump significantly from this crap low level again.
The long awaited announcement coming soon now
GLA I’ve fingers crossed for all those who backed this share in some cases very substantially
While I’ve a modest position I hope the wait is rewarded and in the end I can take the hit but there are a lot of low credit score borrowers out there too who need a lender so for them too fingers crossed
Really odd - I sold a few this morning (might regret it) and on here my sell is showing as a buy. Just shows you can't trust what type of trade is said.
Certainly hope so and certainly possible mariog.
We will know in a week.