Orchard Funding Share Discussion Threads

[97peter] 21/3/2022 13:43

Hi gbcol,
Yes I took £10,000 of bonds and there will be more bond issues in 2023 and 2024. Plus with the future looking rosy, for things like banking licence and also offering some of its s/w as SAAS to the credit and insurance industries, things are on the up.
Drastically cheep share price with an annual 3p divi for a 60p share!!!!
Get in while you can at 54 and 56p to buy!!

[topvest] 18/3/2022 20:12

Nice to see this starting to turn the corner at long last. Its been a disappointing investment for me so far, but there's not been a permanent dimunition in the original value, so could well bounce back in time if growth continues.

[gbcol] 18/3/2022 09:20

Sounds positive, I’m not invested here yet but been watching and may well take the plunge when funds available.

I did however buy a chunk of their bonds recently. 6.25% interest was attractive to me. Anyone else buy them? I was hoping they would do more of them in coming months/years as I didn’t want to go in too heavy straight away.

[belfry17] 18/3/2022 08:05

Yes, very good little update.

[battlebus2] 18/3/2022 07:44

Great update with profits exceeding expectations. Increasingly cheap imv.

[97peter] 16/2/2022 08:28

Steady rises, plus shares available. I see this at 63p confirmed and steadfast.

[97peter] 07/2/2022 19:30

Keep trying Galled. Though the price could be 65p and 70p as we go through the next 3-4 weeks and some of the investment companies might start to release some?

[galles] 07/2/2022 17:01

Really struggling to get any. 500 shares a go.

[97peter] 05/2/2022 09:39

Onwards and upwards, plenty of buys and share price on the steady 2p / week increase I forecast and a superb share, undervalued and exceptional divi, GLA.

[playful] 30/1/2022 15:11

Pete, I am a buyer here now. I do like this company an extremely focused business and the CEO has a long track record in the industry and well connected too. He was NED at Honeycomb Investment Trust and clearly sees orchard as his baby and intends to grow the business with or without a banking license.

You can see from his 30-minute introduction to the company on their website how enthusiastic he is and that is enough for me.



You back people in this game and their founder CEO ticks all my boxes!

Skills and experience:

Mr Ravi Takhar has over 25 years’ experience in the acquisition, growth, financing and disposal of financial businesses. Mr Takhar joined Bexhill UK Limited in 2002 and has led the growth of its business to its current size. Prior to creating the group, Ravi was an investment banker and head of Financial Services investment at Nikko, the Japanese investment bank, from 1998 to 2002 as well as chairman of Mortgages PLC, the mortgage lender. Mr Takhar was also head of Mortgage Principal Finance at Investec Bank PLC from 2005 to 2008. He qualified as a banking solicitor at Clifford Chance, a leading international law firm, and has an MA from the University of Oxford.

Broker note Oct 21

Orchard’s FY21 PBT of £1.05m is 13% ahead of our forecasts driven by better loan growth of 9.4% YoY to £29.9m (LibE: £28.0m) highlighting the resilience of the core insurance business while the group continues to explore new markets for future growth opportunities. However, management expect demand for their products to remain subdued over the next 12 months and as such, we now expect a material recovery in lending to be delayed to FY23E. Despite the challenging environment the group has declared an unchanged FY21 DPS of 3.0p evidencing the group’s strong balance sheet and cost-effective supply of liquidity. Based on our revised estimates we reduce our TP to 66p (from 71p) although we maintain our BUY rating given it offers 20% upside to the current share price.



Customer feedback:

[97peter] 30/1/2022 14:48

hxxps://gambleinvests.com/orchard-funding-group-a-premium-finance-lender-at-69-of-net-current-asset-value/
Great article on ORCH

[97peter] 28/1/2022 15:47

This should beat 56/57 early next week and then one wards and upwards steadyt9 the 6 month report in March. Happy to hold and play the long term on this. Admittedly I have 4.8% of the shares in float and slightly bias and in deep! But with a 3p divi per year on a 55-65p share, it’s a no brainer!!

[playful] 24/1/2022 22:21

You are not wrong!

[97peter] 24/1/2022 18:29

This is a steady eddy type share, slowly uptick! Steady in a storm like this week with issues and news on Russia and Ukraine, unsteadying Ftse 100 and 250.
Can’t wait to see the6 months figures in March!
Plus the buys last week show this is on the radar of wider market and steady asset builders!!

[belfry17] 24/1/2022 09:08

Agreed. With lots of silly valuations on 'potential' out there (maybe fewer in the past week so!), this is one that is at a price which is great for what we have right now (although forecast to improve too). I look forward to the next update and when the market starts to take note too.

[97peter] 22/1/2022 16:39

Yes, down to this company finding attention of the wider market! Plus the divi, assets and future growth in clients. Along with hopefully a banking licence application by year end when more new clients and existing ones, sign up to new rates, given the better lending facility, this company is definitely on the up this year, well above its NAV of 75p and could even be acquired for 3 times its current value if a bigger player spots the cash flow, assets and software of this exceptionally well run and highly profitable company!!

[galles] 20/1/2022 21:58

Unusually high volume in the past couple of days

[97peter] 17/1/2022 13:32

Things ticking up, the news must be outgenerally that this is a ‘gold’ share with huge growth, plus great dividend and future banking licence and growth and expanding client base, with increased profits.

[97peter] 12/12/2021 13:54

Belfry17, I think if the bond issue and raise iffy DS is done with integrity and at the right rate of return to shareholders then yes happy to! Plus I think a share buyback, plus applying and following through on bank licence in 2022 , is needed to launch ORCH to the next level and limelight!

[belfry17] 08/12/2021 15:56

Thanks for the posts, you two. Please would you let me know your thoughts on the bond issue. They are looking to raise funds and pay a coupon back, so they then need to lend the funds to a customer at a rate above that bond yield. Is that a way to look at it? This saves fees on borrowing themselves?

[rainmaker] 08/12/2021 14:11

Net net current asset value, a proxy for a company's minimum liquidation value at Orchard Funding is 66p. In the private market, there is no business Owner or Accountant that would sell you shares in this Company at current levels, period. I believe this very profitable company is not only tangibly very cheap but there are exciting potential earnings enhancing opportunities whether it be reapplying and securing a banking licence that would allow the Company to slash its cost of borrowing and transform its profitability or a possible bond issue announced last week or the commercial licensing of their lending software or an entree into new more lucrative markets that I believe have already been piloted.

AIMHO, DYOR

regards

[97peter] 08/12/2021 10:29

The growth, cash flow and no debt, plus divi are great! Plus it has a decent order book and forecasts for 2022, plus with a share price 12p under the NAV price and trading at a discount, what is not to like and invest in medium and long term, with a 5-6% divi and a 22% growth over the next 2 years!

[belfry17] 07/12/2021 13:24

It looks like the tide may be turning again. There are profits, a low share price, a dividend and good management to go with it.

[rainmaker] 14/9/2021 16:09

Lol, a good old fashioned "Tree Shake" by market makers at Orchard Funding today, a small volume of sales, I think some £11k in five trades at circa 55p and the dealing spread has gone from 57p/60p yesterday to 52p bid, 60p offered. The mid price is now showing as 56p -2.5p

regards

[brucie5] 02/7/2021 15:57

Excellent, thanks Rainmaker. Currently no room in the inn, but should one become available, this will certainly be on my list.