Orchard Funding Share Discussion Threads

[mach100] 22/11/2019 12:59

Moved quickly on a few trades including mine in the last few days. A similar retrace can be expected on sales but hopefully the banking license will come shortly and give this Orchard the Vit C it needs.

[topvest] 31/10/2019 21:00

Well its all very quiet on this BB. It's probably a positive sign that I am talking to myself....and resident troll!

[topvest] 31/10/2019 08:57

Some fairly solid results and much better than 5p EPS consensus. Still optimistic about this one, but they need to break-out of their current low growth phase by getting a banking licence.

[topvest] 05/8/2019 06:25

Great to have Gresham House and Chris Mills as shareholders. Obviously a lemming institution baling out. Bodes well as I respect these two new holders: they are good at spotting value.

[topvest] 30/7/2019 19:28

A shareholder has baled out at 70p today with over 3m dumped. Doesn't bode particularly well, but maybe just a bored institutional investor clearing out losers at any cost. Not long until we get an update I suppose. It's been slow progress here unfortunately, but could still eventually come good.

[topvest] 15/2/2019 19:55

Yes, I was thinking the same. Looks like someone selling a few. I'm sitting tight.

[asagi] 15/2/2019 08:38

why has this sold off so hard last couple of sessions? Bored holders? Asagi (no position)

[topvest] 13/11/2018 08:08

Results a tad disappointing. £290k single bad debt due to a fraud at a customer appears to have taken the edge off the numbers. Results in line with expectation, but would have been well ahead without this. Banking license delayed until Q1. Hopefully, 2018/19 will be better. Still a growth company, but slow growth at this stage.

[topvest] 29/8/2018 07:41

Trading update is OK then albeit I would question whether 8.5-9% growth is significantly higher than last year. Nice little company though and happy to hold. Markets appear to be more competitive, but seems to be run by an intelligent fanatic. Quite liked this bit......"During the year we have also developed market leading software to further enhance our product offering. We move into our new financial year with great confidence and fully expect to continue our growth trajectory. The banking application process is going according to plan and we remain hopeful of receiving the bank licence by the end of this calendar year."

[topvest] 10/8/2018 12:05

Today's drop is due to someone selling just 5k shares. Not much volume here is there. Anyway, lets see what the trading update shows.

[topvest] 18/11/2017 07:45

All looks positive here now nearly 18m from the profit warning. Should triple its loan book over the next 3 years. Run by an Intelligent Fanatic. Sensible business strategy. Forecasts look readily achievable and may be beaten as they were in FY17. Looks like they have probably learnt their lesson and are now having cautious forecasts. Market cap only £22m so capacity to add material shareholder value. Book value about 62p so not a frothy valuation. May consider adding more on a pull-back. Only negative is that returns are steady and not stellar with returns on equity only about 10% at this stage. That being said its low risk lending given they have never had a default. Another big positive is that there is virtually no posting on this Billboard! Two other thoughts. The new Chairman looks a real win for Orchard as a background of Secure Trust and Arbuthnot is nice to see, so he is a successful banker. Bodes well. Then a comment on what one of the big 2 has to say on their market... Interestingly this is what Close Brothers say about Premium Finance in their Annual Report. "The Retail Finance loan book grew 8% to £2.7 billion (31 July 2016: £2.5 billion). Premium finance accounted for most of this increase with new broker wins, increasing volumes from existing brokers and premium inflation all contributing to loan book growth of 17% to £0.9 billion (31 July 2016: £0.8 billion). Premium finance continues to be well positioned competitively, benefiting from the multi-year investment programme in its infrastructure aimed at improving both broker and end customer experience."

[wjccghcc] 19/3/2017 20:37

I think it might be the direct premium finance product from Bexhill. They set it up a few years ago for brokers who wanted a third party rather than an in-house solution.

[topvest] 18/3/2017 11:56

Good to have some company. Quick question for you - the Direct Insurance segment which is growing massively. Is this the Orchard Lending Club platform or something else?

[wjccghcc] 16/3/2017 22:06

I just bought a few at 86p. Originally sold them at 105p when it was clear the original targets were a stretch. I use premium financing for my insurance policy and it is a convenient way of doing it, so hopefully these are nimble enough to outgrow the two market leaders.

[topvest] 16/3/2017 19:23

Is there no interest in this company other than me? Lack of BB activity is normally a good sign.

[topvest] 15/3/2017 19:17

Lending and loan book up 30% or so. Not quite where they would like to be, no doubt, but picking up as lending book was only up 22% year end. Think this is an exciting little company led by an intelligent fanatic. Multi- bagger potential?

[topvest] 15/3/2017 19:12

Well a very positive update today. Growing the loan book nicely.

[topvest] 05/1/2017 17:14

Well a nice step-up today. All quiet here, which is also a good sign!

[topvest] 26/11/2016 16:39

Keeping a low profile this company. I've doubled-up. Key points, both pro's and cons: 1. Disappointment after last year's profit warning still hanging over the shares. They have binned their advisor and appointed another with more realistic expectations (probably taken the view that it is better to have lower expectations and out-perform rather than making the same mistake again). 2. Think the prospects look good medium term though, so good time to buy on a 2 year view? 3. Stockopedia rank is very low, but its distorted by the cash outflow common to many banking stocks as they grow their debtor book. The score for banking stocks is just not valid. 4. Low risk lender - never, yes never, had a default (or an overdue). 5. Lots of market share to go for as miles behind the two market leaders. Are they a nimbler competitor? 6. Fin tech Orchard Lending Club launch not factored into the rating - could be a winner and seems to have started well and getting traction on deposits which will give them another funding source. 7. Ravi Takhar looks an "intelligent fanatic" - get in early! 8. Company is illiquid and not particularly well owned by institutions. Always good news for multi-bag gains a few years out. 9. July 2017 expectations have been wound right back to 20% growth on the base year. Looks pretty easy to beat given the Q4 lending book was up 22% and sales momentum is only just starting to get going following recent appointments. 10. Downside is that the price is likely to take a year or two to recover fully from the disappointment of not getting anywhere near the original 2016 expectations. 11. Share price is not incredibly cheap at 14 time forward earnings, 3% yield and a 50% premium on net asset value. 12 Finally their margins have dramatically improved given their ability to source lower cost funding. Overall, for me its a potential multi-bagger over 5 years. Could go a little lower in the short term. Reasonable margin of safety as net assets are about 58p (i.e. 35% downside). Well positioned to do well in the medium term. Happy to hold long-term and see how they do. It seems to me that they are quite well positioned to build a £100m business over that time period with steady growth using their conservative funding model.

[topvest] 12/7/2016 18:44

Yes, disappointing update today. Nevertheless, looks to have good growth prospects when the new business comes on tap. Like the low risk business model. May look to add a few more, but will probably await the year-end results first.

[quidzinn] 12/7/2016 09:09

"Yes, H1 numbers nothing to get too excited about, but the business looks a good medium term growth stock to me. Can see it doing very well indeed." lol Q

[topvest] 14/4/2016 20:06

Yes, H1 numbers nothing to get too excited about, but the business looks a good medium term growth stock to me. Can see it doing very well indeed.

[thomasthetank1] 14/4/2016 09:37

Read Panmure's note on Orchard Funding Group (ORCH), out this morning, by visiting hxxps://www.research-tree.com/companies/uk/investment_platforms_%26_services/orchard_funding_group_plc … “Prospects are larger than envisaged and taking longer. No change to numbers implies a significant amount of lending shortly to be deployed. New opportunities also add to the prospects and a banking licence application is now being prepared... The company is expected to achieve an 18% ROE in the year to July 16 and a 29% ROE in the year to July 17. 1.9X book value is considerably below all the peer group… The company has made significant progress in H1 which isn’t evident yet in the numbers. The prospects are larger than originally anticipated and have taken longer to deliver. The valuation fails to reflect the significant growth…”

[topvest] 07/3/2016 20:05

I thought that I would start a thread for this niche lender. Came across this recently and thought it looked an interesting proposition. Key attributes are: - a committed CEO who is not overpaid and founded the company; - an IPO that made sense in relation to reducing the funding cost; - 2 in-house subsidiaries - Bexhill and Orchard; - virtually no default risk on insurance fees and professional fees funding; - a large target market; and - in-house systems developed. Looks a nice little company that has been overlooked to date. Couldn't find anything negative to be honest. Taken an initial position. QVM score on Stockopedia is also 86 which is pretty good.