Orchard Funding Share Discussion Threads

[topvest] 17/5/2024 10:18

I've exited my very small holding. Management can't be trusted. I'd rather take the tax loss now whilst I can. You may do better than me - good luck. Golden rule of investing is to avoid dishonest managers. You can't do a good deal with a bad person - Warren Buffett!

[muffster] 17/5/2024 10:03

Being contrarian here, I think that purchasing shares now with a take out value of 35p looks worth the risk.

[florence141414] 17/5/2024 09:56

My hunch would be that he doesn’t have to worry about what price the institutions will accept. Reading between the lines I suspect (but don’t know) that the institutions have agreed to go private with Ravi. I expect we will see a tender at 35-45p for about 30% of the shares with the institutions pledging not to take up any tender shares. Which means all private shareholders can get out if they so choose.

This is all just guesswork on my part. A similar situation happened recently with Quarto.

[argey123] 17/5/2024 09:55

Looking at the significant shareholders on their website just now. Can see CEO/Founder has 56.63% between him and his wife. Does anyone know if the Individual investors listed that own 1,271,780 share (5.96%) and 251,725 (1.18%) are personally involved with the company or just shareholders?

[topvest] 17/5/2024 09:49

Share price still holding up. The market seems to be expecting 30-40p in my opinion.

[konradpuss] 17/5/2024 09:28

There's the old investor and the bold investor. There are very few old bold investors!

[orchardholder] 17/5/2024 09:17

I am fuming, my higher limit orders just barely didn’t get triggered…

I am willing to buy an additional 1M shares or so, but don’t want to increase my average price too much, so I don’t want to enter over 25c (my highest limit order is at 23.2)

(I still own the same 311K shares)

[topvest] 17/5/2024 08:24

A very inadequate RNS. No timeline. Reading between the lines, it sort of implies that things will be sorted with the July 2024 accounts given a shareholder vote is required on the delisting from AIM. I might be wrong and they may delist sooner, but their shareholder communications are currently being driven to walk the share price down...that is very clear. It will be interesting to see at what price Ravi (the vulture) comes in. He's obviously not too interested at 30p as I suspect 30-40p will be the tender price being the minimum the institutional holders will accept!

[valueman94] 17/5/2024 08:15

3.5 holder here.

Nothing new here from that RNS that wasn’t already in the last statement. I’m expecting a below NAV tender offer. This would weed out the shareholders who just want out regardless of the fundamentals.

What happens after the poor tender offer is when things get interesting.

[fozzie] 17/5/2024 07:47

Agree Konrad. Any of the larger shareholders here got any thoughts on this mornings non rns? Come on Peter just do the decent thing here and make a tender offer that is befitting of you.

[kabrams] 17/5/2024 07:38

I’m a worrier so I will kindly disagree with you Konradpuss. Why would you hold in hope on a tender that might arrive. There’s no guarantees. Risk = worry. My fear here is very visual!

[konradpuss] 17/5/2024 07:24

Top, I am unsure what you mean by 'force weak holders'.

He is not buying any shares currently so any share sales are going from one private punter to another.

He cannot, I believe be selective on any tender offer.

The best thing currently is to stay pat and wait to see the price of the tender offer in my humble.

[topvest] 17/5/2024 07:04

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 06:55

It’s childish behaviour if you ask me.

[konradpuss] 17/5/2024 06:51

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 06:26

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 06:11

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 06:07

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 16:50

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 08:59

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 08:21

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 17:45

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 17:32

You naughty boy!

[konradpuss] 20/4/2024 15:24

As the young people say ha! ha! ha!