There are 2 parts to the results. Clearly cash will have risen, but the provisions will be a crazy figure. Gary himself said the same in the newspaper article on Sunday. The previous SOA meant communicating with hundreds of thousands of previous customers and saying they may have a valid complaint. Numbers would have gone through the roof. It doesn't matter in an SOA is passed as the figure is capped however many share in it (apart from the loan adjustment side) but they can't assume a successful SOA in the accounts as it hasn't happened and so those numbers will increase provisions and mean a big statutory loss. It will demonstrate it is SOA or Insolvency but it still sounds like the FCA want the penny and the bun.
I am not sure calling them a disgrace is right. If they had no disregard for shareholders (and obviously they are shareholders too) then they would have bowed down to the FCA, done a 100m RI for buttons and wiped holders out. They are trying to tread a fine line and keep the company as investable rather than some zombie which is diluted to oblivion just to keep the dumb FCA happy. They may or may not succeed but they are thinking of shareholders, partly because they also are holders themselves.
RE: More carrots than my local market28 Jul 2021 19:48
When people leave a company, whether under a cloud or not, they invariably sell their shares. They dont often hold them, whatever the price. Often they paid sod all for them anyway and so they don't view it always as losing out as they were at nil or little cost. I hope he does sell out, as he is partially to blame for where the sp is. The sooner all remnants are gone the better.
A hole trades. If you met some of the people you abuse on here in real life I doubt you would last the night.
I see you are a pumper on NFX, along with your sister and girlfriend. That is 2 of you on the NFX board then. One is you, and the other is your sister and girlfriend. People like you are an advert for celibacy.
Not sure Clintek. They may have been going back and forth trying to discuss or they may have taken time analysing the impact. Essentially it is just an effect on the forward looking statements - perhaps as the FCA won't consider the lending restart until this resolved then technically less profits and if no more lending long term then the business is shagged obviously. Maybe the plan for Amigo (which makes sense) is to try and try up starting re lending with a raise, with some extra SOA funds maybe. The FCA may want the SOA funding resolved without it being tied to any commitment on relending. In the real world (the FCA don't live there) that is nuts. Why do a big issue now when the sp is on the floor when you could raise most of it much more effectively when the sp has recovered a bit. Doing that would be the very definition of destroying shareholder value, which the FCA want, but creditors would get less as well. It is stupid and pointless if that is what they want. No-one benefits in any way except perhaps the FCA because they look well hard lol.
Agree stevielad. No detail at all on the specifics of an SOA other than the Committee Announcement and that in the absence of a new SOA it will be insolvency. They can't even really say that their favoured option is a new SOA as otherwise they are pre-judging the Committee findings and making it a waste of time and worse than useless. They will lay it on thick tomorrow, warts and all, as they have to 'educate' the regulators, who are supposed to already be educated, that just because there is money in a bank account doesn't mean it isn't already earmarked for something - i.e. secured creditors.
Thaw, in the article Gary talked about the sums not changing, but the timing might. To me that must mean more up front and perhaps less/no future income. I don't think the FCA like the future bit as it is unknown and I have also wondered how guaranteed it is in the event of a future takeover for example. More money upfront via some dilution will be absolutely fine if it resolves and a return to lending follows soon after.
Now that would be an announcement and a half lloydyboy - premium raise at 30p, agreement to return to lending, clean slate going forward, 10 trillion hits already on the website with new enquiries this morning, free cakes for all at Mrs Miggin's pie-shop, £1 a share dividend for long suffering shareholders..... Here's hopin :)
Strange set of communications though. The original update after 5 months rather than 6 which was supposedly to let the II in on the cheaper and now the sp has dropped again sharply, essentially on the same or a similar update. Would the sp have fallen so far to this point if there had been just the one update? I am not so sure.