International Personal F... Share Discussion Threads

[topvest] 06/1/2017 09:34

Well the regulatory changes were bad enough and now they raise the fact that the tax position is uncertain going all the way back to 2008. Bit of a nightmare run that they are having!

[wad collector] 06/1/2017 08:47

I just added a few at 162 , I suspect that the uncertainty surrounding this RNS is an overreaction , but I am just guessing.

06 January 2017

This announcement contains inside information

IPF to appeal decision of Polish Tax Chamber

International Personal Finance's home credit company in Poland, Provident Polska, is to appeal a decision received from the Polish Tax Chamber (the upper tier of the Polish tax authority) on 5 January 2017 with respect to its 2008 financial year. The decision involves a transfer pricing challenge relating to an intra-group arrangement with a UK entity together with a challenge to the timing of taxation of home collection fee revenues.

We strongly disagree with the interpretation of the tax authority having received legal opinions from leading advisors as to the strength of our case. In addition, during a previous tax audit by the same tax authority, both items were challenged and the company's treatment of them was accepted as correct. Provident Polska's treatment of these items has not changed since then.

We will appeal the decision to the District Administrative Court and pay the amounts assessed (c. GBP20M comprising tax and associated interest) which is necessary in order to make the appeal. The payment of this sum is not a reflection of our view on the merits of the case and accordingly it will be recognised as a non-current financial asset in our group accounts. As we believe our case to be very strong, no provision will be recognised against this asset and there will be no charge to the income statement as a result of this decision. We also intend to initiate a process with the UK tax authority aimed at ensuring that the intra-group transaction is not subject to double taxation but is taxed in accordance with international tax principles.

We expect to receive the same decision shortly from the Polish Tax Chamber in respect of the 2009 financial year which would give rise to a substantially similar liability to that for 2008. 2010 remains under audit and all subsequent years remain open to future audit.

International Personal Finance and Provident Polska do not adopt aggressive tax strategies as evidenced by Provident Polska's average effective tax rate since 2008 which exceeds the Polish corporate income tax rate of 19%.

[bulltradept] 06/1/2017 08:12

Buy at a £1?

[r ball] 06/1/2017 07:47

I bought these December 14 when the Polish issue was first flagged and sold a day later. Always interesting to see how things played out. You can play the short term movements but not the trend...

[wad collector] 21/12/2016 13:16

Numis have halved 2017 profit prediction , but I suspect they are guessing. Personally I think a rate cap is desirable everywhere but it appears that this cap is NOT an interest cap.
The consultation process will finish in 2 days and presumably a decision in the New Year . So it might not even turn out as suggested.

IC;


sell: International Personal Finance (IPF)

Planned legislation in Poland has prompted analysts at Numis to value IPF as if there is no value in the Polish business.

International Personal Finance is once again in the line of fire as Polish legislators plan new restrictions on consumer lender charges. The Polish Ministry of Justice has proposed a further reduction in the non-interest charges to 75 per cent of the loan value from 100 per cent. Shares in the subprime lender fell by as much as 44 per cent on the day of the announcement but have since recovered some ground.

The initial total cost of credit legislation came into effect in March. As a result, the group introduced a new product range to comply with the legislation and help mitigate the impact on profitability, including offering credit with longer repayment times. At the time management estimated that — without taking any mitigating actions — it would suffer a £30m reduction in profit by applying the new pricing regime to loans written during the year to June 2015. However, it estimated mitigating actions would offset around half of this impact. During the first half the Poland-Lithuania business accounted for around two-thirds of overall pre-tax profit.

Management says it is “reviewing the proposal to assess the extent to which the profitability of its Polish business would be affected by the proposed changes, should they be implemented, and is also examining appropriate mitigation strategies to minimise any potential impacts”.

Analysts estimate that where under the existing cap IPF could collect £168 from a £100 loan, under the new proposal it would only be able to collect £126. The shares are more than a third down on our sell tip, which we stick with.

[wad collector] 14/12/2016 20:07

Trying to be philosophical , last yr the share price tanked with results then bounced up 50p later that day for a tidy intraday trade.
Hard to interpret the Polish change. I see not surprisingly the brokers are re-rating;
December 2016
Numis 12/12
Reiterates
Buy
Buy
344.00p
Peel Hunt 12/12
Under review
Add
Under review
JP Morgan Cazenove 12/12
Reiterates
Underweight
Underweight
250.00p
Liberum Capital 12/12
Under review
Hold
Under review

[losos] 14/12/2016 10:49

wad collector - "Not very high and not for very long"

Doesn't look good in the long term, I was looking at these but decided on PFG but the bad news on IPF has impacted on PFG.

As LINTON5 correctly said you need luck sometimes :-) My PFG holding is relatively small so I shall stay 'long' and see where we go.

[wad collector] 12/12/2016 21:26

Not very high and not for very long , at least today!

[wad collector] 12/12/2016 09:01

Finally bouncing , but how high and how long?

[linton5] 10/12/2016 14:40

We've all been there topvest (not nice) keep your chin up,you need luck at times dosnt what stock you buy. Good news or technicals don't always work

[topvest] 10/12/2016 12:12

That's what I call a well timed move. Awful Friday afternoon for me having FRP and IPF within my portfolio. Oh well, had a good run of late.

[linton5] 09/12/2016 23:08

Jeez I was lucky also had 10k at 280 from 2weeks ago and sold yday at 282 to pop into vod 🙄Phew. Buying sky woulda been better lol

[salpara111] 09/12/2016 15:33

Another close escape for me as I had been looking at buying in after the last reasonably upbeat statement.
The problem with clamping down on the likes of IPF is that all you do is drive the desperate into the hands of loan sharks.

[bulltradept] 09/12/2016 15:31

And you, and remember, the market will be open on Monday for more (possible) opportunities! :-)

[colin12345678] 09/12/2016 15:30

thanks bulltradept have a good weekend

[bulltradept] 09/12/2016 15:28

Colin for the record, I was in @ £2.00 out at £1.9864, didn't like the action, so I took a £56 loss. Fortunately I am nicely up even taking that loss on the day (via other trades) into account. As you state, it's a learning game.

[colin12345678] 09/12/2016 15:23

so you think the bottom could be 1.40

[danieldruff2] 09/12/2016 15:23

As well as the potential hit to profits you have to bear in mind they have bonds outstanding. Price of the 6.125% bond down sharply at the moment

[colin12345678] 09/12/2016 15:22

cheers mate learning every day

[bulltradept] 09/12/2016 15:20

Colin, I learnt my lesson from the budget a couple of years ago on a particular stock whose name escapes me, once Parliament's get involved, stand well clear.

[wad collector] 09/12/2016 15:17

Poland/ Lithuania (The two are not distinguished ) were the source of £21m of the £43m profits in the last half yearly statement)
By the look of the new rules , this will clearly make a hit on IPF in the medium term , especially if other countries follow suit. It is hard to know what the long term effect will be on the reputable end of the credit market ; if the sharks go away then maybe the honest lenders will prosper? All speculative of course , and am gutted to see some big paper gains fall away , but I just added at 170. Good money after bad , or a timely bargain? Time will tell. Surely there will be a bounce today?

[colin12345678] 09/12/2016 15:07

some you win took a loss will wait

[bulltradept] 09/12/2016 15:06

Good luck colin, chart wise support is now around £1.40 - £1.50 ish, I'd suggest.