The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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David McCreadie, CEO, outlines Secure Trust Bank’s Full Year 2023 highlights for the period ended 31 December 2023.
Watch the video here: https://www.piworld.co.uk/company-videos/secure-trust-bank-stb-fy23-results-highlights-march-2023/
Or listen to the podcast here: https://piworld.podbean.com/e/secure-trust-bank-stb-fy23-results-highlights-march-2023/
There is an interesting Investor's Chronicle podcast interview with Lord Lee, the first ISA millionaire?, where they take a deep dive into Secure Trust Bank, in which Lord Lee is a keen investor. He mentions the attractive NAV, yield, conservative dividend cover and the possibility of good growth or takeover interest.
https://podcasts.apple.com/gb/podcast/investors-chronicle/id951671327?i=1000643482726
If the customer wants zero interest purchasing arrangements, how does the customer expect these arrangements to be paid for?
Separately, STB is trading at discount to NAV…FCA investigations aside, it looks like a decent punt, with useful yield.
Yes, I've just read the article from Shore Capital. I'll revisit STB after results and when there's more clarity on the FCA investigations.
"Regulatory initiatives ‐ Vehicle Finance
We note the FCA's recent announcement about discretionary motor finance commissions. We operated some discretionary
commission arrangements until 2017. From 2014 to 2017, a mid‐single digit proportion of our new vehicle finance loans
included such arrangements. The FCA plans to set out its next steps in Q3 2024, when the implications for the industry
should become clearer. We will provide further information to the market on these developments as appropriate.
Separately, during H2 2023 we engaged in formal discussions with the FCA about our collections processes, procedures
and policies in Vehicle Finance. This follows the FCA's review of Borrowers in Financial Difficulty (BiFD) across the
industry. We have engaged external support to assist us with this review and, where necessary, are enhancing our
approach. We currently expect the review to conclude by the end of H1 2024."
I decided not to touch STB until there's a response regarding the motor finance scandal. Being a smallcap, it will crash and burn if there's any involvement whatsoever. It changes the entire investment thesis. I just liquidated my holdings in Lloyds and Barclays. It seems like banks are full of crooks.
Have emailed request for information regarding this matter. Will advise when/if I get an answer
Anyone know if STB will be affected by the FCA investigation of motor finance?
How bad will it be for them?
They are saying that the liabilities will be many billions of pounds
CMD given 8/11/23
https://www.piworld.co.uk/company-videos/secure-trust-bank-stb-capital-markets-day-november-2023/
Medium Term Targets of a £4bn loan book to allow the group to deliver a cost-income ratio of 44-46%, and a future 14-16% return on average equity.
The day focussed on V12 Retail Finance, referred to as ‘An emerging powerhouse’. V12 is delivering significant growth, structural improvement in its cost of risk and significant operational leverage and scalability through digitalisation of customer service.
A low PE of just 3 and a fantastic dividend yield of 8.55%.
There was a helpful chart on risk by sector, (for interest free retail finance) the least risky is Furniture, then Jewellery followed by Leisure (often peddle/electric bikes), highest risk are Electricals although Marks Electrical are one of their retailers. They focus on the less risky sectors with interest free finance, they say the cost of risk has now reduced from 3% of the loan book in 2019 to 1.6% at H123.
Yesterday they also gave a Trading Update showing that Q3 closed with ongoing momentum. Net lending up 14.2%. V12 Retail Finance represents 79% of the growth! Their retail finance market share has also increased to 13.2% from 7.5%. A competitor has disappeared and that has been beneficial to STB. They drive retail finance sales through their relationship with the retailers.
Is still moving forward positively I see.
Wednesday, 8 November, 11:00am
The Capital Markets event will include a deep dive into the Retail Finance division and further detail on the Group’s path to delivery of its medium-term financial targets. Speakers at the event will include David McCreadie, CEO, Rachel Lawrence, CFO, Nick Davies MD of Retail Finance and Andy Phillips, Commercial Director of Retail Finance.
To register for the event in person or virtually, please contact SecureTrustBank@teneo.com
Share price is still in its stuck state. This company is so undervalued at the moment, and I have high hopes of it doing well in the future. Great price to buy in now considering revenue is growing and growing profits which shall turn into larger dividends going forward.
It’s 7.45. Is this a joke or a Bot?
The buying momentum remains steady this morning, indicating a potential breakthrough of £6.
CEO David McCreadie provides insights into Secure Trust Bank's 2023 Interim results and future prospects. Watch the video or listen to the podcast for more details.
The first batch of purchases were made by a committed director, while the second batch lacked the same level of commitment, indicating a display of confidence.
The interim results for the six months ending on June 30, 2023, have been announced by Secure Trust Bank.
Another £75,000 paid by the CEO for shares in the marketplace, at c.670p
Not selling yet are you mate ? 😉
Decent buying again, should see £7 if it continues.
Back to we’re it belongs.
1st lot were commited director buys, 2nd not so, shows confidence.
Steady buying again this morning, should break the £6
David McCreadie, CEO gives an overview of Secure Trust Bank’s 2023 Interim results and an outlook for the rest of the year.
Watch the video here: https://www.piworld.co.uk/company-videos/secure-trust-banak-stb-interim-results-2023-overview-august-2023/
Or listen to the podcast here: https://piworld.podbean.com/e/secure-trust-bank-stb-interim-results-2023-overview-august-2023/
Looks like the trader who was hoping for an instant 10% / 20 % have left this morning, hopefully a steady move up now.
I think banks / lending as a whole are not favourable at the minute, market possibly expecting more defaults?!