Member Info for mariog

80m is not a redress amount but only 16m is expected, maybe 20m. Rest of the money will be to unlock 200m securisation facility to expand business and for investment opportunities.

NSF announced share issuance approx 12 months ago.
NSF does not have any Scheme and never had as never needed.

Nothing makes sense here. MM are not pricing this share correctly, but well, look one of the MMs is Peel Hunt who have been advising Alchemy in CWD. With CWD share issue also was not necessary if you read their archival message boards.

one more post on this very negative day caused by badly written update,

IPF update today lifted their sp to the pre-covid days.
Our results in 2 weeks must be good as we are operating, lending (in 80% vs 2019), collecting, repaying own debts on time etc.

Exactly.

Regarding share price kept artificially low, wuestion for FCA to answer:
should the private shareholder (N.Utley) in the market maker (Peel Hunt) be allowed to keep shares in a company where Peel Hunt is an active MM?

Mcap 13m now.
Cash £78m per last update
Unused £200m credit line facility

In August 2015, NSF acquired "Loans at Home" for £82.5m.
In December 2015, NSF acquired Everyday Loans for £235m.
In 2017 NSF acquired George Banco for £53.5 million.

So as the business is profitable since October 2020, easy to say that they have 80m cash now.
Say will spend 20m on redress. This will leave them with 60m cash.
Hard to believe that extra 80m is required to unlock the unused 200m facility. Don't know (yet) why do they go for that high amount??

Business is expanding as they been hiring more managers over the last weeks.

Worth to mention today's update totally shadowed by the share issue to come in Q3:
"Since the trading update on 23 February 2021, the Group has seen a steady build of month-on-month growth in lending at branch-based lending and home credit which, combined with historically low rates of impairment, has meant that net receivables at both businesses are now returning to growth. In guarantor loans, net receivables have more than halved since their peak in March 2020 as a result of minimal lending, good collections and the write-off of COVID-impaired customer balances in the 2020 financial year."

Tbh redress is not my main concern but low share price kept by PH and others.
BoD estimated Guarantor Divi redress at 16m. GL divi is not the big one here and the upheld rates were low.

Question: why share price is maintained so low for the last months.
Answer: Peel hunt works for Alchemy
Question: will we see another party interested in bidding for the company?
Answer: 13m mcap is a bargain so who knows , who knows
Question: as they have 80m cash, why so much extra cash needed
Answer: Alchemy wants it same way as in Countrywide plc

HeresHopin, now can see that. makes sense. Thanks for clarifying. So the delay tactics work for them big time.
Imagine headlines in a few months: NSF with loan book 200m and 80m cash sold for 10m.

they will take no less than 21% in the open offer. Regardless the open offer price will be, the remaining shares legally must be purchased by them for no less than 8p.

Alchemy owns 29% of NSF, so any purchase will force them to make the bid for the company. They want open offer so they want to buy as many shares as it will be possible leaving not a lot for PI's. This is really a very similar story to Countrywide which happened approx 12 months ago there. Only difference is that in Countrywide they had less shares than here.

"Requirement for a mandatory offer: Where a bidder is interested in shares carrying 30% or more of the target’s voting share rights, the bidder must make a mandatory offer in cash at no less than the highest price paid during the preceding 12 months (often referred to as a "Rule 9 offer"). Mandatory offers can only be conditional on the bidder receiving acceptances that, together with any shares already held or acquired during the offer, would give the bidder and its concert parties more than 50% of the voting rights. As such, bidders cannot rely on other conditions to protect themselves."
https://www.burges-salmon.com/news-and-insight/publications/guide-to-public-takeovers-in-the-uk/

"Alchemy's offer also provides Countrywide's shareholders the opportunity to sell their shares or to participate alongside Alchemy in the recapitalization."

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/alchemy-partners-revises-countrywide-offer-61604952

Is true is that the remaining shares need to be bought at no less than 12 months high, then I would expect an offer for my shares at no less than 8p per share.

I wrote about this a few months ago. Alchemy is pushing for the open offer to grab as many shares as possible and then will takeover NSF. Same was with Countrywide last year where Alchemy tried to takeover the company, but another player stopped them. Neil Utley (shareholder in Peel Hunt) is needed to complete the process.

My post 14 March 2021:
"I just stand behind the Countrywide story. It is clear for me now that a very similar scenario is in play. Alchemy will be trying to get as much as they can from us but the contra offer can come from another side. NSF has experienced a really nasty 2 years and Covid doesn't help. But as they are operating and loan term can easily be renegotiated. Also what I noted is the use of "significant recapitalisation" which Alchemy was trying to sell to shareholders in 2020 with CWD. Significant was not needed. Similar as here. No need to significantly recapitalise. What is needed is to issue amount that would plug the difference required to use 200m securisation facility. I wish some other fund will wake up to this or the BoD does something or put company on sell.
If Alchemy does what whey want, first they will takeover the company, second they will change the BoD, third they sell it as a profitable business with sound financials."

https://www.insidermedia.com/news/national/alchemy-urges-countrywide-to-take-no-action-on-upped-connells-offer

Revised proposal from Alchemy Partners - Countrywide
Peel Hunt is acting as Financial Adviser to Alchemy Partners on its revised proposal to Countrywide plc, as announced on 2nd December, 2020.

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/alchemy-partners-revises-countrywide-offer-61604952
https://twnews.co.uk/amp/uk-news/countrywide-investors-clash-over-estate-agent-s-planned-rescue

I thins situation I think that Alchemy would need to bid for the company remaining shares at 12months high to takeover the company.

You lads should also check the upheld rates as they are very low plus where the share price is today. I am not selling today for sure as the 30/06 update will be better than in February. Remember that in Feb we heard about dilution to come and price moved up from 3.5p to 8.5 on a return to profitability in October 2020.
Selling is everyone's sole decision.

Trading update in February was very good. They say now that the trading has improved and the impairments are lower. Mcap 15m vs 200-300 loan book and 80m cash? Sp should be no less than 10p but hard to read the people minds.

They need to raise some cash to unlock 200m securisation facility to expand lending

Results 30/06 should show nice profits being made and confirm that mcap 17m at 5p level is undervalued

Price is held at 5p for a reason. Ordinary shares are 5p worth. Results in 2 weeks should show profitability.
Company has approx 80m cash and is operating well. Personally I can't see equity raise at less than 5p.