Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Found the below update of interest on Provident..
(Alliance News) - Sub-prime lender Provident Financial on Monday said its Consumer Credit Division faces liquidation unless a scheme of arrangement can be agreed to pay off increasing customer complaints.
"When combined with the impact of Covid-19 on its profitability, customer complaints can no longer be treated as part of operating costs," Provident explained.
It continued: "If approved, a scheme will bring certainty for stakeholders and ensure that customers with a legitimate claim get fair access to redress payments. The group will fund legitimate scheme claims with GBP50 million and will cover further scheme related costs estimated at approximately GBP15 million. The total commitment would be met out of PFG's existing resources."
The company said customer complaint payments were about GBP25 million in the second half of 2020. On top of this, the unit processed balance reductions for home credit customers of about GBP11 million during the same period.
"If the scheme is not approved, it is likely that CCD will be placed into administration or liquidation. If this were to happen, CCD customers would not be expected to receive any redress payment. Whilst the financial repercussions for CCD would be expected to be substantial, the direct financial or operational repercussions for Vanquis Bank and Moneybarn of an administration or liquidation of CCD would not be significant," Provident added.
The doorstep lender also noted the UK Financial Conduct Authority has opened an enforcement investigation into its CCD unit - focusing on the consideration of affordability and sustainability of lending to customers for the period between February 2020 and February 2021.
"CCD intends to work closely with the FCA in the coming months, including in relation to the investigation, which is unlikely to conclude until 2022," Provident said.
In better news for Provident, it said its fourth-quarter performance was ahead of internal expectations, and, as a result, for the year as a whole.
Chief Executive Malcolm Le May said: "Whilst the latest [UK] government lockdown has reduced the demand for unsecured credit in our markets so far this year, we continue to see scope for growth opportunities, post-Covid, over the medium-term."
Provident Financial shares were down 18% early Monday following the pre-market announcement.
Here is what you need to know at the London market open:
Amigo Holdings PLC results for 9 months ending 31 December 2020, on Thursday 25th February, management webcast and Q3 presentation. To attend sign in on the below link:
https://www.amigoplc.com/investors/results-centre
Amigo Holdings PLC results for 9 months ending 31 December 2020, on Thursday 25th February, management webcast and Q3 presentation. To sign up use the below link.
https://www.amigoplc.com/investors/results-centre
With the Q3 update scheduled on the 25th Feb, thought it would be worth contacting Kate (IR) concerning the scheme, remaining BOD FCA approval status and progression with initiating loans. Feedback was understandably limited but thought I would share with you.
Kate response:
"Thanks for your email. As we are in close period ahead of our results I am unable to give any update. On the Scheme however I would caution against drawing parallels with other Schemes as each will have been designed with each company and its specific situation in mind. We will release Q3 results on 25 February."
The sooner they can start lending and providing more assurances the better. This has been a very long path for a lot of us. Extracted part of GJ statement from the RNS below, he states will not be rushed and wants to make sure problems of the past are resolved and right processes in place. This seems to be the right approach as long as they can get approval for scheme and appropriate assurances to the fca. As a large holder of shares, would like more assurance updates as this path seems to continue to get ever longer.
"We are focused on sorting out the problems of the past, and will not rush our future - be that ensuring that customers are given time to review and assess the Scheme or establishing the right processes and procedures to resume lending to the very large community excluded from mainstream bank finance. “
Shaminder Rai CHIEF TRANSFORMATION OFFICER is now add on the directors page.
https://www.amigoplc.com/directors-and-company-secretary
Shaminder joined Amigo in January 2021 as Chief Transformation Officer. He has an exceptional record of change at pace and will lead operational process, Technology and business change at Amigo. Shaminder is qualified in ACCA and Lean Six Sigma and has continuous improvement and business revolution expertise. Shaminder has been involved in turnaround situations as Head of Strategic Projects at Secure Trust Bank, as Business Change Director at Payzone and, most recently, as European Transformation Director at The Warranty Group and Assurant. Shaminder is also a Board member of the Nishkam School Trust and volunteer where he was awarded the British Empire Award for services to Education for his role as Chief Operating Officer of the Nishkam Free School Trust.
I have held shares in Braveheart for the last six months or so. I just spoke with HL for clarification over the special dividend payment. I am sure most of you are aware but thought I would share... I was told you need to be holding the share by opening on the 10th December. Feedback was if you buy shares now until the 9th December your entitled the special dividend. I am not up to date on dividends and always thought you needed to hold the share for a prescribed period before being entitled the dividend.
Guys - I have not posted here before but have been monitoring since invested May this year. I appreciated the posts and contribution on the site for this investment. Due to current drop in share price, had contacted Amigo investor relations contact Kate today and received the below response. This was just before the TR1 was released today by Glen and hoping to get another response on this. It covers information we already know but thought I would share it with you.
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We are scheduled to release our H1 results on 26 November and will report more fully to the market then. In the meantime, I refer you to yesterday’s RNS in which we state that we have unrestricted cash of c£140m as at end October 2020 and adequate liquidity to continue to fund operations and support our customers. Our purpose is to provide financial inclusion to the millions of people in the UK that are unable to get a loan from mainstream lenders and we are working hard to enable us to return to lending as soon as possible in 2021.
I appreciate your position, note your comments and thank you for your continued support.