The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
RedoxOne is owned by THS right, yes? So what is the forecast and value of the company?
One million customers reached as of today!
It;s to everyone to make their own investment choices, even if Affran on Twitter is saying it;s a screaming buy!
I am glad I got out when I did as this has slipped further this week.
I sold my shares. Karo is a bad investment that the market never liked from day one. I presume that people are selling out as results are due soon and it will be dire.
When aim businesses start to threaten investors on free bulletin boards, it smacks of desperation. Tomorrow I shall be selling my THS shares first thing at a loss. I’m not impressed.
Bought in today as I had been watching these a while and waited for results first.
It's heading for a drop now
organic is such a bull**** word. mitch really did mess this up
It does matter if they have those contracts, as they are unable to make money and keep posting losses
Break out today?
it's been ****ed over by the seller in the background
Quite a few recently, very undervalued, but the market isnt taking any notice.
HTtps://www.investorschampion.com/channel/blog/bonkers-bargains-1pm
Results for the year ending 31 May 2023 (28/09/23)
Revenue for the year ending 31 May 2023 climbed 17% to £27.6m while profit before tax soared 281% to £4.2m with earnings per share up similarly to 3.7 pence.
Own-Book deal origination increased 14% to £73.4m lifting the period end Lending book to £170.1m, an increase of 24%. This lifted the ratio of own-book lending to broked-on lending to 96% vs 4% during the year, up from 87% vs 13% in the prior year.
The Invoice Finance division saw lending increase 30% over the previous year to £56m and the "Hard Asset" offering within the Asset Finance division was up 55% to £62m.
The non-core consumer mortgage brokerage was offloaded in the period.
The Group closed the period with unused lending headroom of approximately £50m.
Net Tangible Assets at 31 May 2023 were up 12% to £34.2m.
Trading update for 1st quarter
Own-Book lending origination in the first quarter of the current year rose 29% to £20.2m helping to lift revenue 21% to £7.6m. Profit before Tax was 44% higher at £1.3m.
The lending-book has increased 3% to £175.8m since the May 2023 year-end with net arrears remaining stable at 6% of the gross lending book.
Net Tangible Assets also continue to increase; up 3% since year-end to £35.2m and up 13% from 12 months prior.
Broker forecasts
For the year ending May 2024 updated forecasts are for revenue of £30.1m, pre-tax profit of £5.0m (+19%) and adjusted earnings per share of 4.0 pence (+14%).
For May 2025 forecasts have been upgraded to revenue of £33.1m, pre-tax profit to £6.3m with adjusted earnings per share 5.1 pence (+27%).
As anticipated Time Finance appears to have ridden out the Covid storm through its multi-product lending offering and the flexibility of its business model.
With the significant government support packages no longer in place post-Covid, and with the ever-increasing economic challenges facing small businesses, access to finance will be a key priority for SMEs over the coming months and years.
At the current share price of 28p (previously 17p) the market capitalisation is still a lowly c£26.4m, a c25% discount to net tangible assets at 31 August 2023, which has also been subjected to meaningful provisions. Despite the strong share price performance over the past 12 months the PE multiple is a lowly 7x forecast earnings for the year to May 2024. Prior to the pandemic impacting returns, which pulled down earnings per share to 2.6p for the year ending May 2020, this business consistently delivered earnings of more than 6p and 6.8p in 2019 - net income of £6.35m. This equates to a normalised price earnings multiple of 4.7x.
While the shares have had a good run in 2023 to date, they remain well down on previous highs and this business continues to look ridiculously cheap on many levels. The Group's multi-product tailored offering to UK SMEs, its o
I opened a very small long with Dec 23 expiry at the bell and have just locked in a stop now the price has moved this morning.
Might be marked up first thing, maybe a few buyers even, but long term will this work? People should want to invest because of the investments ANIC have made in businesses and the success of them, not splashing cash buying back shares?
They have been sat on their hands taking a nice salary and the share price has flatlined. I know the market has been tough, however they need to find a way forward to either exit and return money or add growth to Arix
Any reason for the movement?
I just dont see large growth needed like say Octopus energy, so TEP can be a bigger player. All the growth was years ago and now they are a niche market
Great summary about TEP growth, I often wonder if in the future they will be taken over and move to a different model that does not include distributors