Orchard Funding Share Discussion Threads

[davidosh] 23/1/2023 22:48

Orchard Funding Group PLC ("Orchard", the "Group" or "Company"), the finance group which specialises in insurance premium finance and the professions funding market, is pleased to announce that at the Company's Annual General Meeting held on 29 December 2022 all the resolutions put before shareholders were duly passed.


Of course they were...but why not use the Agm to allow more shareholders to meet all the board and not just Ravi. The companies that have Agms at Christmas when most investors are away or with families are usually the dodgy ones that do not want shareholders asking questions so they missed an opportunity to get to know us.

Orchard needs to be seen as much more shareholder friendly and develop loyalty amongst holders...that plus website updated, presentation available with Q&A would all help

[galles] 23/1/2023 21:00

Thanks. Then we are left with upping the dividends, but then again, if the cash generates a better return, I don't mind it staying there

[97peter] 23/1/2023 20:47

Hi Galles as a long term large holder. I cannot see a share buyback, I cannot see how it would help, with Ravi holding 55% off the shares,plus his family have around 10% , then MM’s then Stewart. See major shareholders list on website. I will ask Ravi tomorrow and ask him to add this to Q&A’s on Investir relations page. Hopefully by start of Feb investor relations site and links etc. will be up and improved! Keep the faith a steady share price and company. Get on while cheap!

[galles] 23/1/2023 19:53

97Peter, is share buyback an option do you think? I did ask this question at the presentation (either increasing dividends or share buyback) but it didn't get asked. If there is cash and there is a seller around, snap them up and get rid of the overhang

[battlebus2] 23/1/2023 16:03

I agree, it’s one of my top holdings otherwise I’d also be adding.

[97peter] 23/1/2023 14:35

Battle bus and others I don’t know what is happening at the minute.? Maybe investors who bought purely for divi are now bailing out to use elsewhere? Great opportunity to buy at 45p so I amin at every opportunity to buy in 10,000 slots!
This is a medium to long term play, with very good divi for anyone retired with a decent drawdown pot in their SIPP to live off the divi’s.!!!
Fill your boots!

[battlebus2] 23/1/2023 14:18

Very weak at the minute. 10k sell and we are at recent lows.

[cwa1] 20/1/2023 12:48

Blimey, that turned around quickly!

[cwa1] 20/1/2023 12:43

Picked up a few more at 44.8p, seems very weak :-(

[97peter] 20/1/2023 11:23

SPOB all I was saying is what were you adding by telling us the price fish and other things had gone up % wise? This has no bearing on the divi and 6.8% return. Orchard are giving you 2p divi for a 50p share, better than UnitedUtilities giving you 28p divi but at £10.12p a share.
DYOR and look at the constant return and cheap share price

[spob] 20/1/2023 08:55

"report and removal may be needed"

good luck with that one Karen

[jonwig] 20/1/2023 07:28

@ valueis... - yes, I agree with you. My generalisation was off-target.

[valuewinsout] 19/1/2023 23:58

Hi jonwig: Orchard needs capital to be able to lend - it's currently borrowing some of that from banks and Toyota at the moment, and also uses the capital raised at IPO, and also retained earnings. Therefore, if they retain money, they will lend it out and therefore reduce the amount they need to borrow from banks, which saves them interest. So you can consider that the return on retained earnings, is equal to the interest saved vs borrowing the funds from a bank, plus the profits made by lending it out. I don't think that Ravi is anything like Elon! So I think that the comparison with Tesla is unfair.

Orchard has discussed getting a banking licence before, so that they can get deposits and reduce their cost of funding: this would required spending some of their retained earnings, but Ravi in his Mello presentation said that he is not doing this because it is hard to make a small bank profitable: so I think that he is careful to not destroy shareholder value by misallocating capital in the form of retained earnings.

[97peter] 19/1/2023 20:43

Shanklin and cwa1 the banks that fund Orchard, currently Barclays was explained in detail and secure, in the Mello presentation. Shanklin on divi’s this will be dependant on future profits and contracts and an upside in investors! The two SaaS services, you should read about via the websites and see their huge potential! For the likes of Aviva and DLG!! And others!

[shanklin] 19/1/2023 14:30

Thank you 97peter, The Barclays situation seems rather important albeit all fine to date

[cwa1] 19/1/2023 14:09

97peter

Have you any thoughts as to whether the dividend is likely to be increased...and what might drive it? Or is it "stuck" where it is?

Thanks

[97peter] 19/1/2023 13:34

Shanklin- I have raised and updates Ravi the CEO on this area. It is currently in hand, you should see it hopefully by month end. I work as a Cyber consultant contractor for Orchard and it is a very small and all costs kept low, to enable Ravi and company to pass on profits to shareholders via divi and marketing and new work with the services of the SaaS - Lendxp and Trustloop which is where a lot if the growth and future potential large income and profits will come from! Hope that helps?

[shanklin] 19/1/2023 13:27

And is ORCH still highly dependent on BARC in terms of being able to continue its current range and scale of lending please?

[shanklin] 19/1/2023 13:22

"This information was last updated on 30 May 2019"

Any idea when ORCH's investor relations might have all the information promised in earlier posts please?

[jonwig] 19/1/2023 10:37

valuewinsout - you've just described the so-called earnings yield, the reciprocal of PE ratio.

The trouble with retained earnings is that, although they belong nominally to shareholders, management can't always be trusted to use them wisely.

Look at a prime example: Tesla. How to destroy shareholder value.

[97peter] 19/1/2023 10:09

Slob, sorry to be blunt, but what has all that diatribe got to do with the ORCH share price and dividends??
Please keep to point and some interest to ORCH investors on here! Or a report and removal may be needed!

[valuewinsout] 19/1/2023 00:26

The Orchard Funding group annual dividend is 3p vs current share price at 47 p, so a 6.4% yield. Yes, this is below the current rate of inflation: however not all the cash earnings are paid out as dividends. 3p per share and 21.35M shares out. is £0.64M paid out in total, vs earnings after taxes of £1.52M: so they retained £0.88M. The market is currently not recognising this, but the true increase in value is £1.52M divided by £10.03M market cap: or 15.2%. So actually the increase in value is ahead of inflation - taking into account the dividend, and the retained cash earnings. This is actual money on the balance sheet. ORCH will not keep getting cheaper forever - at some point the shares will re-rate. Until they do, I am getting a 15% annual increase in the underlying value of my investment - ahead of inflation.

[spob] 18/1/2023 18:19

UK inflation: how everyday items and services shot up in price


Basics such as eggs, bread and drinks are in a basket of items that rose at over twice December’s 10.5% inflation rate.

Price rises of many goods outstripped December’s 10.5% inflation rate with bread up 20.5%, electricity 65.4% and hotels 18.1%

Richard Partington

The Guardian

18 Jan 2023



The UK’s inflation rate fell for a second month in December, dropping to 10.5%. But households remain under pressure as prices continue to rise for a wide range of goods and services.

Despite the fall in the headline rate, food and non-alcoholic drinks jumped by a collective 16.8%, the fastest annual rate of increase since 1977. Price rises for restaurant meals and overnight stays in hotels also accelerated.

The Office for National Statistics compiled the overall figures using the consumer prices index, but also logs individual goods and service prices. Here we break down how those everyday items have shot up over the past year.

In each case, the figure is the percentage change in the average price over the 12 months to December 2022.


Food

Food inflation items

Low-fat milk 46%
Sugar 38.5%
Butter 29.3%
Pasta products and couscous 29.1%
Eggs 28.9%
Jams, marmalades and honey 24.2%
Ready-made meals 21.7%
Bread 20.5%
Fish 19.6%
Pizza and quiche 13.2%
Fruit 6.5%


Drinks

Mineral or spring waters 23.3%
Soft drinks 18%
Fruit and vegetable juices 16.7%
Coffee 10.1%
Tea 11.2%
Beer 5.4%
Spirits 4.3%
Wine 2%


Electricity, gas and other fuels

Gas 128.9%
Electricity 65.4%
Solid fuels 31.7%


Clothing and shoes

Garments for men 8.8%
Garments for infants and children 6.2%
Garments for women 6%
Footwear for men 5.6%
Footwear for infants and children 5.4%
Footwear for women 0.2%


Household items and furniture

Garden furniture 12.2%
Cookers 11.3%
Lighting equipment 9.6%
Carpets and rugs 9.4%
Refrigerators, freezers and fridge-freezers 9.2%
Bed linen 7.7%


Vehicles and passenger transport

New cars 6.7%
Motorcycles 1.8%
Bicycles 0.9%
Secondhand cars -5.5%

By air 44.1%
By bus and coach 17.5%
By train 6.9%
By sea and inland waterway 6.4%


Hospitality and recreation

Hotels and motels 18.1%
Fast food and takeaway food services 12.3%
Restaurants and cafes 10.1%
Holiday centres, campsites and youth hostels 9.1%
Cinemas, theatres and concerts 6.9%
Museums 6.2%


Other recreational items

Products for pets 16.2%
Garden products 13.5%
Veterinary and other services for pets 12.2%
Sport equipment 4.3%

[spob] 18/1/2023 18:17

As investors we all need to be aware of the REAL return we are getting from our investments.

Just making a point that's all.

The government indicates 10% inflation. The average person on an average income knows their true inflation rate is easily double that figure.

[cwa1] 18/1/2023 15:14

Just floating the question...is there a realistic chance of the dividend being increased, or have they stuck on a figure of 3p(been that since 2017) and it will take something special to shift them from it? Has anyone asked the question of them?

Cheers