Member Info for zccax77

Debt is 750mn. 500mn is collateralised by two ships.

This is the risk, if current rental values are 30-50% lower than pre-covid then the auditors will be forcing them to write-down their IFRS-16 lease asset by £190m-£300m. This is a real possibility and one of the analysts mentioned in the Q2 call.

"The Metro business model is a busted flush if it wasn’t then Metro would be opening more banks every week on new Covid Rental levels (30-50%) lower than the rents Metro agreed to tie themselves into Precovid lock down. All in my opinion of course and people should do their own research."

Campbell good points, just need some clarification:

Average remaining lease is 20 years

They have spent £5m on leasehold improvements in each location. Are they really going to abandon sites where they have invested a kings ransom making improvements to the landlords property?

Remember this is a bank which has to hold minimum capital so is constrained in doing things other retailers can.

Looks like no one told Neil Faulkner about the 20 year average lease term on those stores.

“An acquirer might look to retain as many of Metro Bank’s customers as possible, while closing as many branches as it can get away with. RateSetter’s technology and people would certainly be an efficient way for another bank to expand its lending too.”

This for you Theo:

https://www.p2pfinancenews.co.uk/2020/11/02/analyst-speculates-metro-bank-could-become-the-target-of-an-acquisition/

Guys do you know how they will check whether you are flying for business or pleasure. I am flying out to Ecuador to work from there for the next few months.

Plus reduced motor claims occurance.

Jinny I would say better quality management and a business model with is sustainable. Hopefully one of them takes this out at £1 and that will be the end of this pile of dog poop.

They took delivery of the second ship in the last 30 days, so you can add another 275m to the credit side of the balance sheet and 330m to the debit side.

I wonder if private equity can take over and do a CVA. As As a listed company that is not an option. But PE won't be as constricted.

Theo, business rates are the least of Metros problems. Metro branches are usually 2-3 times the size of other banks most of which were signed and locked in at cyclically high rents for 25 year terms with zero breaks. Now those market rents are coming down 30%+ leaving metro with operational leverage which the rest of the industry are eager to get rid. I don't think anyone else in the industry has such a ridiculous property portfolio, compare to the financials of the other banks and the problem becomes glaringly obvious.

https://www.avisonyoungretail.co.uk/uploads/media/Clients/Metro%20Bank%20April%202016.pdf

The trading statement won't have any numbers. Only thing which will sink the price is that their below their MREL requirements.

"Saga eventually locks in a loss I'll just add 'travel' to my list of uninvestable sectors."

Fundamentally this is the issue with SAGA, punters think it is a travel company, whilst the lions share of earnings £70m is made in insurance segment. Insurance companies with such earnings usually have an enterprise value of £1bn+.

*Sorry what I meant was cough up another £500.

Investor6, that is what you call a mutual. Mutuals usually hold 100% more capital than a listed bank. So they will have to cough up another £56.

Look at the profits the insurance industry makes. They are usually no more than 5-6% of revenue (GWP). I would not say they were making abnormal profits.

Just look at the numbers, they are the same as the last year so you can assume they have not claimed it.

For a trip to the canaries next March, SAGA charge £3k, whilst P&O charge £1k. Even at these prices they have 85% load factors.

The reason why these old ships are being scrapped is that it costs too much to refurbish them, plus no one wants cabins without balconies, hence why they sell these old ships for nothing.

That ship mario brought should be junked. He prolly got for almost nothing.