Orchard Funding Share Discussion Threads

[galles] 08/2/2023 13:55

Sounds like you are in favour of increasing the dividends. I am too

[eeza] 08/2/2023 12:41

Yes, but not better than getting the £'s in your own pocket to reinvest as you think fit.

And the other thing about a share BB is, to get the reward of the goosed EPS you have to sell all of your shares - else the gain is only intangible..

[galles] 08/2/2023 12:29

Yes. I guess it won't help with earnings per share, but it'll help knowing the shares are being held and not traded. Better than the situation with a seller around now

[eeza] 08/2/2023 12:06

Yes, but the share-count goes back up again.

[galles] 08/2/2023 12:00

Or to use for acquisitions

[eeza] 08/2/2023 11:53

Share buybacks only work if the shares are cancelled. That is a true return.


Treasury shares aren't a true return because they always get re-introduced, later.

Usually for management's freebies.

[shanklin] 08/2/2023 11:22

Share buybacks only work if the share price is ridiculously low compared with the inherent value of the business. That is the case here as Rainmaker has explained.

Indeed, in this case, not initiating buybacks in probably against shareholders' interests.

[cwa1] 08/2/2023 11:15

Can we expect a trading update post the 31/1/23 6 month period some time in late February/Early March as we've had previously?

[97peter] 08/2/2023 11:08

Hi Galles, battlebus2 and rainmaker. I think at the moment a share buyback is very unlikely to happen? It is not something Ravihas done before, plus realistically wouldn’t do a lot! See share buybacks at Aviva , DLG , and others, never works well!
However please do raise direct with him via Investor relations?
On share price and current levels, it will pick up after we come out of recession in a years time, plus the sellers I think are out, plus current and new contracts, plus the 7% divi return for a 50p share is fantastic!

[galles] 08/2/2023 08:56

I posed a similar question a few weeks ago. Peter is close to the company, a substantial shareholder, and he knows Ravi well. He reckons with Ravi and his family holding a high percentage of the shares, he will not want a share buyback. It's worth asking him direct to be fair. Or alternatively, buy and hold in the treasury. It's not like they don't have the spare cash for it.

[battlebus2] 08/2/2023 07:10

I would love to see a buyback as that very act will see the shares rise but I think Ravi maybe cautious right now and will likely not but let’s see.

[rainmaker] 08/2/2023 00:09

ADVFN haven't yet updated Orchard Funding's latest annual results for the year to 31 July 2022, released in December so earnings per share aren't 3.91p and were're not trading at 11.5 times earnings but earnings are 7.11p per share and therefore we're trading at just 6.32 times earnings which rose 82.9% year on year and a loan book that increased 46.4%

The Company had net income of £1.518mln,paid a 3p dividend over the last year at a cost of £0.641mln and there are 21.35mln shares. Someone mentioned a share buyback v special dividend, well share buybacks by the Company are infinitely more preferable as they are the most tax efficient way of a Company returning value to shareholders since dividends are taxed.There is also the additional benefit of clearing the overhang of shares which have consistently been depressing the share price.

If the Company purchased 10% of its 21.35mln shares so 2.135mln shares for cancellation at 45p, the cost would be £960,750.00. That's not a problem since they have £4.796mln of cash on their balance sheet and there's financially stable and a lowly geared business.

Once the share buyback has been concluded the Company will have 19.215mln shares and their eps will be 7.9p(ie £1.518mln /19.215mln)v 7.11 per share pre the buyback and the dividend per share will 3.33 per share(£641,000 /19.215mln) v 3p before so Investors have enjoyed a 10% rise in the dividend for doing absolutely nothing. There is a further benefit that the share becomes a more attractive proposition to tempt new investors with the p/e dropping from 6.32 times to a very miserly 5.7 times and the historic dividend yield rising to 7.4%

DYOR, AIMHO

regards

[battlebus2] 07/2/2023 18:05

Well a tick up but seller still selling and limits very low on the sell side tells me more selling to come.

[97peter] 06/2/2023 14:38

Agree with all previous 5 posts! Great time to buy, I am trickling a few extra 1,000 and 5,000 buys as and when other divis from other shares comes in. I think the seller has finished now, or sellers, as they have cleared around 250,000 between them! Hopefully this was just a blip and speculators coming in purely for divi?
Orchard is solid!

[battlebus2] 03/2/2023 16:25

Added today, can’t see the justification for such a low rating and the yield is nearly 7%.

[shanklin] 01/2/2023 14:33

…I added a few

[battlebus2] 01/2/2023 13:21

Sure does. Seller maybe finished. 🤞

[cwa1] 01/2/2023 12:33

Makes a pleasant change...for now...

[playful] 30/1/2023 14:43

We have a naughty seller here.

[shanklin] 30/1/2023 10:31

Have bought a few on the basis that all this positive IR stuff will turn up soon… …and will thus add to the seemingly positive backdrop here

[cwa1] 30/1/2023 10:01

And a tiny dribble more at 45p with some dividend cash that was lurking at the bottom of the pot :-)

[battlebus2] 29/1/2023 09:48

Thanks Peter, I’m going nowhere, this is going higher long term and I’ve the patience to wait.

[97peter] 27/1/2023 23:06

Battlebus2 and all plus CWA1 this company and share as a big 3% of company investor, part time consultant and big backer of AIM. I can only ask you to wait for early Feb 2023 for IR investor look, links and Q&A and watch OFGP bounce to 55p!!
A great share, CEO, BOD and plan and strategic plan for 2023/24!!!!!!!!!