Member Info for M1keG

I forgot to ask. Was one of your suggestions that they actually inform their shareholders of the date when they are going to report. Only happens twice a year and most companies seem to manage it. They did at one time but they missed the date so often they don't bother now. Kind of fits with their actual attitude to shareholders.

Sitting here waiting......

I applaud your action in taking contact with the company. The proof as allows will be in their execution. They have paid lip service to shareholder value for close to 8 years. Each company report (though usually financially better) is alwys full of good intentions. We will get back to you on this or that, hope to be self sufficient in capital, believe in a dividend policy, capital raising without dilution, takeover ideas mentioned in every report but amount to just a couple in all these years. Well paid independent board members who are worse than useless in doing what you have tried to do in this contact.

Could you please write a letter once a month from now on please!! Seems like they like to reply after a raise in the share price.

My thoughts are what is the point of getting the AM out to the Netherlands drydock and then sit there, with costs much higher than dubai, waiting for the rock coverings to be finalised because of a delay. They cannot link up without that being completed. Just wait until the process the started and no problems have arisen and the completion date can be more certain. Its about risk prevention.

We will have to agree to disagree there then. Eventually the past warrants will get converted, possible loans converted etc, though the latter are getting less onerous and in the gift of the business not loan holder for some. There has always been a declared ,Future Vision, of getting to a position of paying out excess capital and I can wait for that time. All these items we are now complaining about were gifted 5 years ago and the recent gifts are far more reasonable, loans without warrants, existing warrents increased in conversion price, loans convertable at banks behest etc. Like I say I can wait for this to play out even if I don't agree with how the rich and senior management look after themselves first.

Savvy?, Spent a million, has a book value today of 1.3 million. Thats not savvy thats the who you know network at play.

You do realise that the warrants were in the hands of the chairman of the board and the largest shareholder (who's son is an IND?), you know, the guys who gives everybody else on the board their jobs? Accounts are history and historically, since the turnaround this bank has achieved a ROE of over 10 percent, Guessing what its going to be this year is just that a guess. My money, literally, is on them eventually getting the cash cow going even if I don't have to like how its done. The growth is there just need a bit more help from the sideline businesses.

It would appear this one does? Page 28 and 29 of annual report indicates Liquidity risk and how receivables are matched against customer accounts. Quote Maturity mismatches between lending and funding are managed within internal risk policy limits Unquote Allowing the warrants to expire? Since when do the rich ever give up another opportunity to make more money. They were always going to be exercised, the power was with the owner of the warrant. I agree about the NAV but the share price is the practical measure. We are so far below NAV due to the uncertaintity of dilution, in this crazy world getting rid of the latter is just as likely to raise the share price!! ROE figures, not sure where you are looking? From the last accounts As stated, profit before income tax for the year was £1.5 million (2015: £2.3 million) on a net interest income of £16.0 million (2015: £13.5 million). Our key metrics remain positive: our return on equity was 10% (2015: 17%), which remains within the range of that of our peer group. Our lending grew by 15% (2015: 13%) over the year. The level of performing loans remains impressive at 94%, a testament to our prudent lending policy. Turning to the balance sheet, our loan book grew by £14.7 million to £116.1 million (2015: £101.4 million) and our deposit base increased to £126.0 million (2015: £106.3 million), a growth of 15% and 18% respectively. In turn, our equity increased by 8% to £13.2 million (2015: £12.1 million). There's the capital problem. When your loan book grows by 14.7 million you need 10.5 pct more tier 1 capital under Basel III and the reduced profit did not provide sufficient for further growth. In some respects its a good problem to have as its at least caused by growth?

Although I agree the bank is short of capital to expand, in my opinion that is due to the implementaion of Basel III and the banks rate of growth. The major fault her is the periferal companies (Edgewater etc) were supposed to chip in capital to the group but they are all laggards in obtaining profitability. The farce, last year, of not understanding that their own agents were ripping them off probably cost the last bank manager his job and the missing million in profit (which would have been retained as tier 1 capital). The outstanding loans now convert at 7.5 and 9p so at this share price are a non entity as far as dilution is concerned. Unless you can back this up the note on the regulator it is way off base, the 10.5 pct tier 1 and 2 pct tier 2 are what I believe the regulator uses as the prime method of bank health / depositor protection. Matching deposits against lending over corresponding time frames is what this type of banking is about? This is not a Black Rock borrow for 6 months lend for 25 years operation. BTW they have been making profits for several years now so I'm not sure what you regard as "No Prospect".

My understanding is: 28.3 million available at 6p (if you pay up today and of course if you are a mate of the chairman) After that any outstanding at 7.5p until 10/2017 Plus 20 million at 6p until 10/2017 via SR loan.

Don't forget the 12 sub Australian contract?

I'm not a big supporter of the directors or the way they look after there own but ask yourself what is the point of holding 27pct or 18 pct of something that does not rise in value with time and you are not on the management or the NED gravy train. Constantly improving results over time will sort out the rise in sp.

Ask yourself, if you shopped around the same deal, 6.5 pct and built option to convert to equity at a far lower share price compared to today (remember they kept the option to convert) would you expect to beat what they settled for?