looks cheap as chips down here |
Napoleon could you clarify what you mean by no mention of eps in the results RNS? From what I can see it shows the 2024 eps before and after exceptional items in the income statement included. |
I'm also closing this entry to my thread list as I have too many. If anyone wants the thread changed, please PM me.
Cheers and good luck all. |
I also sold, @ 104p, Pheewwww!
Legal issue was the reason, but now, when reading the results RNS, I can see no mention of eps. Much jolification and self congratulation, a minor profit and improving balance sheet, but you'll have to calculate P/E ratio for yourself.
I haven't bothered but immagine it is quite high hence share price fall.
So, out for now (at a profit) and just watching. |
 From the presentation in relation to the litigation it was stated:
"Response: The press article you’re referring to discusses a summary judgment in relation to two loans made to the same borrower, who defaulted in March 2020. I think it’s important to note three key points:
First, there has been no question raised regarding the general enforceability of the loans and the personal guarantees. The case does not focus on that issue at all; rather, it concerns who holds the rights to the claim.
Second, this is a summary judgment, meaning there has been no final decision on the matter. The ruling simply indicates that the case warrants further discussion and will now proceed to court.
Third, it is also important to clarify that the debt sale in question relates to the sale of loans from an institutional investor on the platform to Azura. Funding Circle is facilitating the loans rather than selling any of our own loans.
As for the trial, we do not yet have confirmed dates, but we do not expect it to take place before September. We remain confident that Azura will be successful at trial. Given that proceedings are ongoing, there is little more we can say at this stage.
Question:
What happens to those loans? Do they go back to the institution, allowing them to enforce the personal guarantees, or do they come back to you? How does the logic of that process work?
Response:
I would refer back to what I mentioned earlier—there has been no question regarding the general enforceability of the loans or the personal guarantees. Given that proceedings are ongoing, it would not be appropriate to comment further at this stage."
========
Seems to me that a more direct response could have clarified whether Funding Circle maintains its right to enforce or if the rights transfer back to Funding Circle. The phrasing makes it appear that the intentionally avoiding stating who ultimately holds enforcement power. |
They have avoided in todays rns-buy back holding this else it may sink further |
I'm still out as well until we learn about the case. |
Still out too. Ending the buyback could be a problem. That's been keeping the share price afloat |
Woah ! Was there something a few minutes ago about the court case ? share price took a right tumble. |
Thanks carcosa. I've sent a copy of your question to the company. |
Carcosa how are you accessing the live presentation? The link provided in the results doesnt appear to work... |
No reference to court case so asked a question for today's presentation:
"Given the High Court's upcoming decision on the enforceability of personal guarantees associated with loans acquired by Azzurro Associates from Funding Circle, how does the company plan to address potential implications for its loan documentation processes and the overall enforceability of personal guarantees on its platform?" |
Results look decent |
Finals on Thursday. No news on the court case beforehand as far as I can see.
I'm still out. |
Low volume days and buybacks would on paper mean an appreciating share price. Not sure on the mechanics of that though, however sounds reasonable to assume. |
Ticking back up !! |
I believe the suggested date is in March. |
Does anyone know when the court case is going to take place? |
Don't think Metro bank is much to worry about, they lend off their own balance sheet so totally different business model and risk profile to FCH which is a platform facilitator of loans. |
Has there been another article? |
Metro bank is moving into FCH space,see Metro banks last statement. |
Even though the court case seems to be in favour of the company, there seems to be so much media speculation based on "what if's" rather than knowledge of what FCH does, I sold out first thing.
I'll wait until the case is settled and then see what the future brings.
GLA to current holders. |
Being able to buy at 92/93 for an hour after the RNS was as close to a sure thing as you will ever seeThat said, the company is pretty opaque. Richard Staveley of Rock wood communicates the business model much more clearly than FCH manage |
I saw some frankly ignorant discussion on Stockopedia on the day after the news article was published, i.e. the day of the price action. Some investors struggle with reading comprehension it seems. |
Well spotted Edmate, thanks. |
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