Orchard Funding Share Discussion Threads

[topvest] 17/5/2024 08:04

The tactic is to force out weak holders and then do a tender offer to the institutions and others later on, as a private company, at a better price. Ravi has never been honest which explains why he has never done any investor relations type stuff.

[playful] 17/5/2024 07:55

It’s childish behaviour if you ask me.

[konradpuss] 17/5/2024 07:51

Ravi and his 'cronies' are just going to try and 'vulture' the equity from the small share holder.

He/they are not even elegant in the the modus operandi.

I think it is the 'independent' directors that are going to be proved a real disgrace.

[topvest] 17/5/2024 07:26

Well the board aren't really interested in generating shareholder value for anyone that wants out. Zero respect. They should be ashamed of themselves.

[pireric] 17/5/2024 07:11

Never even heard of ORCH, but today's announcement in my own other words...

We were going to delist eventually, but now the share price has shown any signs of life ever, we're going to make a news announcement that does not even make a decision, but will have the effect of screwing minority shareholders

Amazing that the board can write an RNS like this that they know will only be taken extremely negatively. Why would you stop paying dividends if you're intending to tender the cash back to shareholders?

Or do they want to buy out the minorities at tuppence?

Eric

[cwa1] 17/5/2024 07:07

Dividend a goner, de-listing the prefered option by an "acceptable" tender offer...

17 May 2024



Orchard Funding Group PLC



Update on the Review of the Capital Allocation Policy and the Continued Admission to Trading on AIM

("the Review")



Orchard Funding Group PLC ("Orchard", the "Group" or "Company"), the finance group which specialises in insurance premium finance and the professions funding market, provides the following update on the Review having engaged with its key institutional shareholders.

The Board is currently of the view that the benefits of maintaining the Company's admission to AIM ("Admission") are outweighed by the following factors:

1. the legal and regulatory requirements and associated costs of Admission;

2. the Company's inability to attract sufficient interest from institutional and other investors, in light of the material discount of the current market price of its shares to Net Asset Value; and

3. the low levels of liquidity in trading of the Company's ordinary shares.

The Board believes it is in the Company's best interests to cease payment of dividends for the current financial year.

The capital retained can be used to make, if appropriate, an acceptable tender offer to shareholders in the future and will be for the benefit of the business enabling management the strategic flexibility, when appropriate, to deploy funds to support the lending of the business.

[konradpuss] 03/5/2024 17:50

Valueman, good on you and Orchard for buying in the 20's.

I thought I was doing just fine buying in the 40's!

[konradpuss] 02/5/2024 09:59

Orchard, I do not doubt your logic, however I just would not want to be a minority shareholder in a private company with Ravi and his extended family as the majority shareholders. I always seek honest and competent management with a large amount of 'skin in the game'. I am unsure all three are present here.

These folk, running a private company, could get up to all sort of nonsense out of the public glare. I could think of multiple ways of them 'syphoning off' large amounts of profit to stop you getting your dividends. This could be followed up by a very 'low ball' offer to buy out the minority in the private company.

I will be tendering as long as there is a tender offer at a reasonable price and will then move on.

[orchardholder] 02/5/2024 09:21

I wouldn’t mind if there is no offer. At this price, I have a dividend yield of 10%, and this dividend will likely more than double if there really is no tender offer. While the dividend could be 8p or higher in the future, as growth might become less of a priority, I think 5p or 6p is more realistic in the mid-term.

At 30p, the downside risk (on a 3-year time frame) is virtually non-existent.

But for sure, this is a waiting game – but that’s just investing in a nutshell ;-)

[cowie19] 01/5/2024 18:45

Thread gone very quiet. Nice rise from the depths recently. Have not sold any still sitting on 23k shares from 42p. The value is there. We wait for something which may never happen but do we really know.....I think not.

[kabrams] 20/4/2024 18:32

You naughty boy!

[konradpuss] 20/4/2024 16:24

As the young people say ha! ha! ha!

[kabrams] 20/4/2024 15:30

Konradpuss this is all very childish from you. I am not Peter and you know it. Stop saying so! I’m here to pose the potential risk and not let investor’s become blindsided by the risks. They are real.

[konradpuss] 20/4/2024 14:47

Thanks - Ravi - Peter - Kabrams

[kabrams] 20/4/2024 12:38

I’m anxious for all you holders. Be careful out there.

[orchardholder] 20/4/2024 09:31

The 54.19% + 2.44% is how I got to my 57% (56.63%). But I see no further holdings.

This isn’t about fair or not fair. It’s just about these two points:
1) what is the value of the company (=83p per share, earning >7-9p per share per year at an ROE of 10%), and it is about
2) what legal rights/ways do I have to participate in this value (=way 1: company stays public, paying 3-9p dividend per year; way 2: company is taken private with a decent offer that I accept; way 3: company is taken private with a bad offer that I don’t accept, meaning I can’t trade the stock likely for years, but continue to receive the dividends of way 1).

At 30p, this is just a great and safe (long-term) investment, in a market environment in which most stocks are quite expensive. The majority of my net worth is in stocks, so, I am happy to have such a bond-like holding. I would be glad to keep holding this company for another decade, earning high and stable dividends every year.

Some of you seem to be pessimistic because the price of the shares have dropped a lot over the last 5 years. However, the quality of the company has not dropped. In fact the financials have become gradually better over all these years. Orchard has been crushing it over those last 6 months.

[konradpuss] 20/4/2024 08:50

Well Peter you might be correct this time.

From the Orchard web site.

R.Takhar. 54.19%
Mrs.Ravi. 2.44%
Res Privata 1.18% - a relative?

Other (all below 1%) 6.54% - a few more relatives perhaps?

As to comments about minuscule holdings, all shareholders in my book should be treated fairly. I am unsure this will happen here.

[orchardholder] 20/4/2024 04:36

Hey Peter, the rule is >75%
So, Gresham + Chelverton + us is enough

Would you mind sharing how you arrived at the >60% that Ravi holds? I can't see that anywhere

[97peter] 19/4/2024 22:32

Orchardholder, you are naive beyond belief! If Ravi decides to take private it will happen. Your miniscule holdings will not stop or impede this! He owns with family above 60%. So a few MM’s or II’s will be happpy to sell all at 45p, plus if he gets the vote as with any takeover/ buyout, read the rules, h3will get to buyout 100%%%%%%%%.

[orchardholder] 19/4/2024 13:07

Thanks for pointing that out David, you are right – they sold their whole position on the day of the fraud news, crashing the price to 16p.

So, from what I can see, it is basically this:
Ravi: 57%

Vs.:

Gresham: 15% (got in at 65-70p)
Chelverton: 6% (got in at 80-85p)
Valueman (2.5%) + me (1.5%): 4%
(note, all of us combined are 25% = can theoretically block a taking private move)

+ Rest: 18%

[kabrams] 19/4/2024 12:56

I am a worrier I know that hence I don’t like unnecessary risk which is why I’m pointing out to those who’ve bought at 28p plus to be careful as it’s worthwhile to remember these were 16p only a matter of days ago. I’m not saying you will ever see that again but be mindful.

[davidosh] 19/4/2024 11:54

OrchardHolder....Recent announcements suggest that Stuart Hawthorne sold down his holding below 3%

[konradpuss] 19/4/2024 11:52

Orchard, if you can accept being locked into a private company then fine. I would not be happy about this unless I held a majority.

My buy price was 45p so I think that I will be tending if the offer comes in at circa 50p. I only have a small holding. I was was going to go in much bigger however the three 'red flag' events really troubled me.

[topvest] 19/4/2024 11:09

Interesting and informative post. Time will tell.
Of course, they still have the listed bonds as well...