Member Info for Megpricing

Good luck. Hope you don’t need it. I just don’t like a CVA majority investment..

Sounds like a risky can of worms.

So the CEO is off. Successor in place ??

Not sure when you bought in, but there’s a lot here that purchased at a high price with a lot of growth promises. Seems a bit like COVID could be the excuse to not fulfill them. Other non prime lenders are making a big go of it in these times especially through the support of CBILS. I worry that the lack of profitability will wash through into poor cash flow and be used to prop up bad debt. I don’t like their BD policy, it appears to suit accountants, not hard actual bad debt write offs. All imo.

Too fragmented as a business. The latest RNS gave little about the future and COVID problems will no doubt come out the woodwork. CBILS should be a massive opportunity in this sector, but no news from them. Think they’re just keeping their heads down.

If they didn’t pay a dividend, then I doubt anyone would even bother with this stock. If you’ve bought a while ago, it’s the only reason to hang onto it.

This stock has been over hyped for ages. Just look at the 5 yr graph. Back then ppl were saying it’s cheap, but that fails to hold water now. They’ve posted some good results over the years, but none of it bumps up the SP. Needs a takeover to stop it bumbling along the bottom. Bad news will potentially plummet it..

Does today’s RNS paint a long term picture ? Shedding of 1/3 of the op board is a pretty big decision. Not waiting until the current crisis is assessed. I guess there’s a ‘no growth’ expectation ahead. Maybe a profit warning !?

Meant - in for the long haul..

I agree, this holding has been in the long haul and collect a dividend. For some reason, the regular people posting about this share seem to have disappeared ??

Thoughts on today’s RNS ?

This is now acid-test time and one out the blue.
Questions;
1pm will see a large increase in payment holiday requests from lessees - do they have the cash flow and reserves to support this period ?
Their funders (block discounters etc) may temporarily relax covenants to support such requests, but they won’t weaken their overall lending position. I doubt lending more at this stage is an option and therefore unused facilities will not be important.
Their loan book is largely aimed at pubs, restaurants etc and may therefore only be secured against PGs (worrying) Is this secure enough ?
If the business is robust and well managed (they keep stating that they’ve been in a stage of consolidation,) then they may survive unscathed.
As you state JS, make your own opinion.

Just a thought, have you looked at future cash flow in any detail ? Just a thought with the high non-performing debtors in the AF books

A very comprehensive breakdown - well done.
Not surprised that the IF businesses in the group have no non performing debt - it’s not their on debt book that they collect.
However, the size of the under (>90 days) and non-performing (90+ days) Asset Finance book appears alarming does it not ?

That’s good news ! Fingers crossed for the SP to rise

I’m not sure what your point is tbh. But if the business doesn’t now grow with all the increased infrastructure costs, then they can’t blame outside forces that are already apparent to them ie Brexit. If the business does not now deliver the growth, then what’s the point in adding costs to support growth? I get that they stated it was a year of consolidation, but they’ve also increased the running costs to increase performance. Plus, taken on more potential debt. So in short, now they’ve consolidated, it’s time for increased performance. These are their promises and therefore stock holders expectations.

In or out, 2nd referendum, Lib/Lab/Con leaders, dates etc etc

Not sure about you Steve, but I’m in this to see a return on my investment. Dividends are ok, but I don’t want to be tied to any one stock, relying on future predictions that don’t happen.
As I stated, if this business doesn’t deliver over the coming months, then this stock will suffer. It’s dropped 50% in 3 years and 30% y-o-y. That’s not growth. This sector is not attractive to a lot of people that’s why it’s cheap, so this business needs to over-perform and exceed expectations to attract investors.

I would have expected the rise in “brokered on” business to have increased profits, not decreased - It’s instant revenue !
With the very apparent higher costs associated with their management infrastructure and Brexit/Election excuses now out the way, the next few months are critical for this stock. I fear that if they don’t start to perform, the confidence of playing a waiting game will wear thin. Below expectations IMO (and the markets)

Now I’m really confused ?? At 8.34 on Monday you stated that you’d been told that there wouldn’t be a trading update, now you’re saying you didn’t say it ? But I thought you’d heard it from the CEO ???
Also, they don’t need to pay the dividend out of profits, they now have a loan-note to stick a plaster over any immediate problems.
When Macro events like elections are happening, I pay even more attention to my stocks, not less.
Sir, Your choice of words and phrasing leads me to believe that you have a direct influence on what is and isn’t announced, is that correct ?