The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I don't think they care about the shareholders as long as they have fat pockets. I think that is a no brainer. However, Umar Kymani is not the CEO. John Little and the board run the strategy of the group.
I don't think 474 is pie in the sky over the medium to long term. They've got a receivable in excess of £2billion and it will continue to grow and the group is diversifying its product mix. I don't think they've ever had a receivable at that level. Operational / regulatory issues are in the past. It is a nice time in the business lifecycle to invest, considering where the sp is at currently.
Tbh, I had a feeling the impairment charge by way of IFRS9 would hit the P&L before the old management reported. Now the accounting period has not finished and economic factors have significantly improved since the group reported a swing to a loss for the year (under old management).
The fiddly thing about IFRS9 is you get a big debit for the amount of loan you expect to not cover over the entire loan in one single go, so if a loan is over three years and expect it to be immediately loss making, the whole loss goes into year one.
Now based on the current facts, inflation has dropped so their models will have improved. So, I am expecting better results than they have reported to date. But how much better, that is the question !
Indeed Pooks. The group now has stability since the FCA, Neil Woodford hostile takeover / fund closure, winding up of the Home Credit division. Impairment of the loan book is the key for me and cost control is a bonus. Show me the money !!
Well with the improvement in inflation figures I am hoping some of the IFRS9 impairment charge which the old management reported will unwind AND the fact the current CEO has increased the pricing to push the NIM. Fingers crossed.