RE: Loan10 Feb 2020 16:42
I had a client recently, with Lloyds Bank for 25 years and kept an overdraft facility of £100K which they had for many years but had never used the full facility. Then in 2019 they requested their bank to uplift to £150K because they were concerned that over the Christmas and New Year period they may need access to an overdraft primarily to finance salary payments. Their income is via the Public Sector and they sometimes have to wait up to 90 day’s for payment and therefore with salaries paid early over the festive period, the main cost of the business, they asked Lloyds for the facility to be extended?? The answer was, yes but can we have up to date figures, accounts for the last 3 years, and a cash flow forecast for the next three years!!!! Without all of this the answer is sorry NO!!! After looking after this business for 25 years and also they had access to the bank account to see that credit balances were maintained almost for the entirety of that period!! You couldn’t make it up, but, as I say banks are basta*** at this point in time and will not loan or grant large sums in particular to SME’s . I have many more examples of this type but won’t bore you all with the detail. My point is finance at the minute is a ball ache to achieve!
Therefore yes the finance acquired by Infa is not the best, but, I suspect without any historical records at the moment and also basically Infa is a new start business acquiring a previously bust company the terms of any financial loans etc were always going to be punitive. Once as someone pointed out H & W is up and running, hopefully it is, then these terms may be amended or refinanced. Someone on here mentioned that the assets of H & W were valued at 20M, I have no idea where that nonsense came from, that is plain wrong. The assets are currently worth what we paid for them i.e. the cost on the Balance Sheet, no more, no less.
I do wish people would stop being experts!! And deal in the facts available.
I agree JW needs to up his game significantly this year both on H & W and IM and deliver some half decent news along the way. I expect him to do this over the coming months. In the meantime I’m afraid it’s a case of sitting and waiting patiently, or the alternative of course, offloading and taking the hit. I’ve done that in the past with other shares only to note one or two years later the sp has shot up!!! Not a good move.
Mr T
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