RE: Fundamentals28 Mar 2024 21:15
Opti
All was well presented and answered yesterday, the Vompound and I even managed to have our 8 questions answered directly 😀 . I liked what I heard and even added another 25% (30k shares additional shares to my holding today. My risk.
Summarise my thoughts
a)The 3rd party claims issue
# Mainly one CMC involved and a legal letter now sent
# staff time and fees per spurious claim
# will persist into 2024
Resolution
# low number of valid claims
# discussion with FSA .. they are determined shortly on the fees and may change the structure change where companies such as Vanquis pay lower tiered referral fees (big boys pay more) rather than one fixed fee
or proposal for the claimant company to pay the referral fee upfront.
b) Product pricing and new products
#Past product pricing, a loss leader to gain volume included an example of an eye-watering -68% return
When Ian McL started management took corrective action and starting to bear fruit in the H2.
# clearly stated yesterday that pricing has been resolved and going forward pricing has been set for contributions to yield a positive ROI
# New products are ready to be launched including ISAs and 90 day /120 day products.. to be rolled out next week.
c) banking with a heart and 'not yet' rather than a no
Great for those needing credit which other banks ignore or debunk. Some of the videos showing were gut wrenching but genuine. Not everyone is fortunate and a simple help with £300/400 product to build a payments history will give many the helping hand needed.
# credit cards are screened and 80% applicants are turned down, but Vanq can offer alternatives from their products.
d) Customer mix, less risk
# the new products will bring in more retail savers. I have been with Vanq for over 5 years as a savings customer. Only had one issue, while not pleasant at the time, was resolved and compensated.
Management
# the old management team have gone, no one believed them.
The new team are tackling the issues head on, proactively and have a clear plan. Seems to be the sensible NI input Ian and Jill(ian) plus a few Southern Irish. All with great experience. They even stopped staff bonuses. Ex Bank of Ireland CEO now in charge.
e) snoop
A fabulous apop with great potential... 👍. Allows flexibility to roll changes same day making business more nimble.
Any I choose to believe what was presented yesterday and the path we are now on is the right one. A few bumps to come of course.
Personal target for me is to get a sub zero holding of around 100k averaging 30p or less and hold forever. At current prices my 1p dividend can buy me another 2800 shares.
Not a recommendation, just a view. Adding and trimming.
Happy Easter
Mx
GLA.
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