Orchard Funding Share Discussion Threads

[cwa1] 29/9/2022 07:45

Placing of Retail Bond

Further to its announcement of 9 February 2022 and subsequent announcement relating to the issue of its Orchard Bond Finance 6.25% Bonds due 2027 (the "Bonds"),Orchard Funding Group plc (the "Company") is pleased to announce that a total of GBP1.1 million of retained Bonds have been placed at an average price of 100.28.

The Company launched its retail bond in February 2022, issued via its wholly-owned subsidiary Orchard Bond Finance PLC, with the proceeds of the Bond issue to be used to further fund the Company's lending activities. The Bonds pay fixed rate of interest at 6.25% per annum to maturity, payable twice yearly, and mature on 2 June 2027. The Bonds are listed on the FCA's Official List and admitted to trading on the London Stock Exchange's regulated market and through the electronic Order Book for Fixed Income Securities.

[battlebus2] 21/7/2022 19:49

Good luck with that, I’d rather invest in ORCH.

[blackhorse23] 21/7/2022 09:56

LSE lender MCL ... looks very attractive , mcap 6 millions but loan book floating 250-300 millions ... switched some investment to MCL

[battlebus2] 09/6/2022 09:50

Yes Ex dividend today for 1p. Likely to reinvest that.

[playful] 08/6/2022 23:01

Seller is on fumes wishing he understood where he went wrong..

Everyday is a school day!

The next Orchard Funding Group Plc dividend will go ex 9/6 for 1p and will be paid in 15 days.

[battlebus2] 08/6/2022 21:33

Encouraging volume today. No reason we can’t trade at 75p imv DYOR etc.

[topvest] 08/6/2022 20:43

Yes, looking positive.

[battlebus2] 08/6/2022 13:00

New recent highs 👍

[playful] 02/6/2022 15:01

Liberum note…

Orchard Funding Group* (BUY, TP 81p from 66p) – Significant earnings
upgrades

Following a strong 1H22 where Orchard Funding experienced a faster than expected rate of recovery following the impact of the pandemic, today’s brief trading update for the nine months to 31 April 2022 highlights the continuation of the strong performance. Driven by a higher than anticipated income and careful cost management, the group now expects FY22 profit after tax to exceed prior expectations by over 25%. The growth is driven by a significant increase in the loan book, although at lower than historic margins. As a result, we increase our FY22 and FY23 net profits by 32% and 39% respectively and increase our TP to 81p (from 66p) while maintaining our BUY rating.

[topvest] 01/6/2022 10:44

Yes, a very positive update again. Definitely recovering very well. The price is too cheap, but I guess there's a lot of value in the market at the moment.

[battlebus2] 01/6/2022 10:39

🤣. Why not go the whole hog and add jam too, you deserve it!!

[playful] 01/6/2022 10:07

I have treated myself to an extra slice of toast this morning 😊

[cwa1] 01/6/2022 08:16

Thanks. I'm certainly hopeful of an increase if things continue as they are

[battlebus2] 01/6/2022 08:12

No mention of the dividend but forecasts for 23 show the 3p continuing. I wouldn’t rule out an increase at some point.

[cwa1] 01/6/2022 07:54

Thanks for that bb2. Do they mention anything about the dividend expectaions in their comment, or is the above the sum total of it? Cheers

[battlebus2] 01/6/2022 07:52

Broker raises target price to 81p

Following a strong 1H22 where Orchard Funding experienced a faster than expected rate of recovery following the impact of the pandemic, today’s brief trading update for the nine months to 31 April 2022 highlights the continuation of the strong performance. Driven by a higher than anticipated income and careful cost management, the group now expects FY22 profit after tax to exceed prior expectations by over 25%. The growth is driven by a significant increase in the loan book, although at lower than historic margins. As a result, we increase our FY22 and FY23 net profits by 32% and 39% respectively and increase our TP to 81p (from 66p) while maintaining our BUY rating.

[battlebus2] 01/6/2022 07:47

Sorry. Don’t know what happened there. No I don’t mind. 🤣🤣🤣

[cwa1] 01/6/2022 07:30

Short but very sweet, hope you don't mind if I post the best bit bb2 :-)

Trading Update

Orchard Funding Group, the finance company which specialises in insurance premium finance and the professions funding market, provides the following trading update for the nine months ended 30(th) April 2022 (the "Period").

As a result of our strong performance in the Period, driven by higher than anticipated income and careful management of costs, the Board now expects profit after tax for the year to 31 July 2022 to exceed prior expectations by over 25 per cent.

[battlebus2] 01/6/2022 07:29

Fabulous update.

Following higher than anticipated income and careful management of costs, the Board now expects profit after tax for the year to 31 July 2022 to exceed prior expectations by ove

[battlebus2] 30/3/2022 19:18

Thoughts on recession and a little war is holding back investors at the minute.

[topvest] 30/3/2022 19:15

Yes, all a bit surprising that there is no interest. Patience needed, but at least its heading in the right direction again.

[florence141414] 30/3/2022 17:26

It’s actually quite the opposite. They lend small amounts, mostly for non-discretionary car insurance loans. You know that option you get at the end of an online quote asking if you want to pay it up front or spread it over 12 months? If you take the second option you are opting to take a loan from Orchard or a company like Orchard. As such they hardly ever have an impairment, how many people just flat don’t pay their car insurance?

I’m amazed the market hasn’t responded to the news that it’s back to making 1.6m annually more positively. At today’s price that’s around a 15% return and a 30% discount to their tangible equity, equity which seldom has an impairment.

I would have thought there would be a stampede for a rock solid 15% return in the current interest rate environment. Having said that, it’s not the first time I’ve been bewildered by the lack of interest in a profitable small cap with a healthy balance sheet. I felt the same about Air Partner recently and then all of a sudden it was bought out at a 50% premium to the share price. Hopefully the same is coming here.

[ammons] 29/3/2022 23:23

Who does this tiny by market cap company (£11m) lend to and, with such a tiny market cap, how would they be affected by a defaulting borrower? Do they lend only to higher risk customers and businesses who cannot get loans elsewhere?

[topvest] 29/3/2022 16:32

97peter - noted. I suppose Close Brothers might be interested at some point as well given they are a direct (and much bigger) competitor.

[gbcol] 29/3/2022 14:04

CWA1 yes surprising lack of trades, just what was my little top up this morning as I wanted to get in 1st thing but need not have rushed. I have medium term timeline so if the share price takes a while to get rising it just gives me more time to accumulate.