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What a disaster in 2015 NSF bought Loans at home a very profitable family buisness for 82 million,shame on the original Directors for ruining a perfectly good buisness.
You can’t double the number of offices and triple the Management without your base costs spiralling.
A tragedy for all those hard working employees who worked through covid to now face redundancy.
As for what is left Everyday loans you must be dreaming if you think they will be able to do a capital raise !
I originally bought share in 2015 at the £1 worthless now they could not run a P—- up in a brewery
You just need to look at salaries in the yearly accounts JVK has had 2,477 million in salary and bonuses in the last 6 years and he has a contract with 12 months notice pay Round 350000 plus pension.
Nearly 200000 paid into his pension as well.
Not bad for someone who has overseen such poor results over the last 6 years even prior to COVID
Finally the company has got rid of JVK that man has overseen a diaster in this company overpaying for company’s then closing part of NSF he should have gone long ago it will be interesting to see how much his pay off will be ?
But unfortunately he hung on far to long and I don’t think the company will recover in the long term the FCA have their claws into this type of high cost credit company’s and it will be hard to survive sad for the employees.
I am amazed the chairman is still in a job since conception August 2014 the company has managed a loss of 183m problems were there before covid ,they have vastly overpaid for company’s with shareholders money share issue at £1 now south of 5p.The following statement is more worrying in the accounts.
However, should the Capital Raise be unsuccessful or take longer than expected to execute then it is expected that the Group would remain in a net liability position from a balance sheet perspective, would breach certain borrowing covenants during the next 12 months and as a result would not be able to access further funding over the period of breach and would require waivers from its lenders. In such circumstance, the Group may fall under the control of its lenders and there would be a possibility of the group going into insolvency.
Unfortunately there will be more bad news this year the FCA are relentless and with the Amblance chasers debt companies driving out Provident they are already into chasing the Home credit division.
Sad but sign of the times
I totally agree fast food the business model of agent and customer is a one off the agent knows the family well the dogs name the birthdays etc.
If it is not broke don’t try to fix it,but unfortunately the FCA do not take these factors into their mindset everyone is too afraid to getting sued.
I would just say that I started as an agent and worked my way up to MD.
Times have changed but I loved my job in every capacity,good luck to all the HC companies these are tough times but it is an industry that’s needed.
I can only speak from experience I was in the industry for 21 years at senior management level HRMC have never liked the self employed agent status ,we fought ever few years and won our case but this has now changed with Uber losing and Pimlico Plumbing in London.
Provident also were under pressure from the FCA who also don’t like agents on commission to collect money and resell into customers.
They consider that does not look after the customers interest.
It’s anyone’s guess when it will happen but it is inevitable it will.Easy for me to say retired in Spain but I still have a lot of good friends in the industry and would hate any HC business to fail.
Unfortunately fast food I am but at the wrong end I bought in if you check previous posting at the highest level at the concept of the company.
And although I have bought in at lower levels still will be at a loss,amounts are irrelevant still a loss and I don’t think the company will go down the HC is the smallest part of the company but will affect the company as well as Morses who also have self employed agents.
But the HRMC has always seen this as a smoking gun in this industry which is why a good friend of mine when starting his own HC company in Manchester six years ago took the decision to Employ his agents.
Another problem for NSF going forward is today’s announcement that Uber drivers are classed as workers and entitlement to holiday pay and minimum wage.
This judgement will eventually filter down to HC with thier 800 so called self employed agents,which is why a couple of years ago Provident employed all agents.
This will only impact the HC part of the company but will kill off any profit that division makes.
Same reason you are fast food I presume except I invested at the start at £1 a share mistake yes and no I don’t smoke and it would give me no pleasure to see this company go down I know a lot of good people in the company it’s unfortunate that the director’s are incompetent not the workers.
Hope that answers your question.
One quarter increase does not increase the year on year loan book debt as reported in the six months to June accounts the decrease in loan book debt are Branch based lending down 14 million,Guarantor lending down 10 million and Home credit down 11 million year on year.
That’s 35 in total especially in Home credit case you lend less you get paid less and your bad debt increases.Effectively you collect your debt out customers in general in that sub prime market place don’t pay you for what they owe they keep paying for what they can get in the future.Fact !
What no one seems to take on board is of course they have cash BUT they are only collecting out the debt without very much lending,and in sub-prime the more you collect without re-lending the amount of cash decreases and the bad debt increases !
Pineapple take note this share is going nowhere.
Whoever is ramping up the Provident Talk here does not know what they are talking about !
Provident changed model from self employed agents to Employed agents which if you check back was the year they lost a lot of money on the Home credit division also losing agents and customers to NSF,this was because of HRMC not happy with the self employed aspect of the buisness.
So there is no way Provident would want to go through the same process with another 850 agents and lose customers and an enormous cost involved on the profit margin.
Perhaps Pineapple you should check your facts before trying to ramp up the price this share is going nowhere in the near future the FCA won’t be rushed and more than likely the redress will be a lot more than allocated in the results.
I really do think some of the investors on this thread don’t read the full results this company has not made a real profit any year since inception total paper losses are 212 million since 2015.
They overpaid for the home credit company 2.5 of net worth to get a foothold that division the old S&U were making 6 million a year profit with only 32 branches and 550 agents
They now have double the branches and 860 plus agents the old S&U had admin expenses of 8m a year now with more branches admin is 32 m a year ?????
Do not be clouded by only allowing 15m redress the FCA have not approved this and are difficult to deal with at the best of times and looking at competitors I would consider this not to be enough.
Covid will be hitting buisness’s for at least the next six months hard this share will not change for quiet a while and when it does a takeover will be on the cards.
Rose coloured spectacles are fine reality is another !
All I can tell you is there were five years ago just over 500 licenced Home credit companies some one man bands some had 20 agents ect,and no I don’t need to google it.
When NSF bought HC from s&u they had 550 agents now around 800 Morses just over 2,000 agents and provident around 2,500 agents.
So my guess would NSF would have less than 10% of the market share
Kv3mc you have hit the nail on the head the problem the FCA have and balance to make is letting well run sub prime company’s continue lending or the flip side is unregulated loan sharks and dubious collection methods
Unfortunately the FCA does not always use a balanced viewpoint and the problem always has been smaller HC companies not following the same practices.
The three largest HC companies always are on the FCA radar ie Provident,Morses,NSF and IPF abroad.
Fast food after being in the buisness for over 20 years before I retired what I can say about Home Credit is it only makes its profit by Reloaning to customers and putting additional loans into the customer.
The buisness will not survive just by doing one loan to new customers! another problem the FCA has with the buisness model is Home Credit customers tend to have more than One home credit company they borrow off,sometimes three to four companies.
This should be picked up when doing affordability checks but often is not and in my past dealing with the FCA it is their biggest worry.
Having said that the HC is the smallest part of the company be it they paid far too much for it,overall in my opinion I feel the company has borrowed far too much against the real value of the customers book debt but that’s just my opinion.
I have kept off posting on this share for a while because there have been so many posters who are in and out with a quick buck without even understanding the buisness.
I have good knowledge of the power of the FCA and they just don’t like the high cost sub prime market so the fact they are investigating the guarantor loans division should not be taken lightly.
This division had 32,600 customers at end of January and 23% 7,500 halted payments because of COVID-19! now think about 23% of customers cash stopped flowing and effectively going into arrears and in sub-prime it becomes a habit not to pay.
Both the home credit and this division will suffer higher arrears default which both ran last year around 27% so who knows what this will increase to ?
The absence of news from the company should be sending warning signs which is why I got out at 6p.Good luck to all you speculate on this share but I predict it is doomed at best sold off.