Secured Income Share Discussion Threads

[makinbuks] 03/1/2020 12:24

For me the wind up is just an underpin. The fundamental is a fully covered distribution, only 5.4% cash and only 18.3% redeeming in the next two years. The problem is the old portfolio has become real high maintenance for the manager and the major shareholder from the previous incarnation wants out. Even if those matters could be resolved in time, the manager is then faced with needing to increase the size significantly to make it economic. On the other hand the wind up option does nothing for the manager either so he's between a rock and a hard place. We're overdue an RNS, personally I'd like to see the shareholder agreeing an extension of time for (say) 12 months and we trade on. Get the 5% cash invested, cover any commitments with a credit facility and see where we are this time next year with the P2P issues further resolved

[spectoacc] 31/12/2019 07:28

93.23p NAV, but will be keeping an eye on another RNS over the next few days - like last time!

[spectoacc] 20/12/2019 15:57

Someone dumped 21.4k at a penny under the bid (84p). Not sure at what price I'd buy more, but eg SQNX shows where the discount may go to. On the plus side - possible winding-up.

[makinbuks] 28/11/2019 17:41

No I agree, good to see another month with a fully covered dividend. Discount still around 4%

[spectoacc] 28/11/2019 08:16

Saw nothing wrong with the latest NAV but we're clearly set for an extended drift until potential wind-up date.

[spectoacc] 31/10/2019 15:16

Agreed - just looking forward to getting money back a few p higher in truth. Not entirely their fault, is the legacy stuff that's gone wrong, but a shoddy way to announce it.

[makinbuks] 31/10/2019 15:09

Indeed! I guess it will stay relatively small when the wind up one way or another looks likely. Not sure 4% is enough to entice someone in to buy it as a complete book. Not sure either how a merger with SQN would be structured. Difficult to be fair to both sides. As I hold both I'm not bothered

[spectoacc] 31/10/2019 08:11

Well, they've achieved one of the smaller NAV gaps in the sector now - just not in the way I'd hoped.

[makinbuks] 21/10/2019 14:17

The worry is that these platform loans are still 7% of the fund and sound like they have been run on a very cavalier manner so there may be more pain to bear here before the end game plays out. Lets hope not.

They very deliberately split out the platform loans from the direct agreements some time back and were I suspect aware of this issue then

[makinbuks] 21/10/2019 13:58

I'm surprised the market reaction wasn't more negative. I'm puzzled by the 8 days between the two announcements

[spectoacc] 18/10/2019 15:58

Particularly unimpressed with this the other day:

"SQN Secured Income Fund plc (LSE: SSIF) (the "Company"), a specialist secured lending income investment trust, listed in the UK, is pleased to provide its amended June 2019 and July 2019 monthly net asset values ("NAV") and monthly fact sheets, together with its August 2019 NAV and monthly fact sheet. The data herein is confirmation of guidance provided in an RNS release of 8 October 2019 and is reflected in the year end financial report also released today.

Amended 30 June 2019 Net Asset Value

Subsequent to the year end, the Company became aware of information in relation to loans on two platforms. In addition, a readjustment to certain credit loss allowances was made to better reflect the underlying conditions of the inherited portfolio and revised judgements of the provisions required under IFRS 9. As a result, the loss allowance as at 30 June 2019 for those two platforms has been amended, resulting in a difference in the net asset value from that announced on 25 July 2019 as follows: "


Basically - "Everything's fine, no issues, but bye bye to 2% of your investment".

[spectoacc] 10/10/2019 08:11

Wow. It's as if we've been in the dark for the past 3 years, and now suddenly there's full & frank disclosure. Must admit I started skim-reading about 2/3rds of the way through but there's some fascinating stuff in there.

Somerston clearly going to be an overhang issue. Can't see them not favouring Option 3, which I'm guessing involves folding into SQN or SQNX.

Some very interesting legacy investments - loved the "..All the directors had resigned and it's now a crytpo investor" paragraph.

The divi cover comments are a big positive. The continuing cash levels, in part to cover currency hedging risk, less so. As is are the comments about a future rise in provisioning as the legacy portfolio runs down.

I'd go with any of the 3 options in truth.

[makinbuks] 09/10/2019 17:57

And finally we get a much fuller analysis of the position. I'll need to read it again more carefully but I would tend to agree its a "candid" assessment. I appreciate their efforts not to just accept write offs from dodgy spivs running platforms and actually get in the mix. Going to be an interesting ride from here. I'm in favour of option 1, while intrigued and capable of being persuaded by whatever option 3 is. Somerton is a problem and the meeting referred to is key. I wouldn't hold out much hope as those guys have taken a hit over on GLIF

[makinbuks] 07/10/2019 12:06

We seem to have missed the publication of an August factsheet.

[spectoacc] 29/8/2019 14:20

Will they even get a C issue away I wonder? Why invest in it when you can buy the SSIFs at a decent discount, already (mostly) invested?

[makinbuks] 29/8/2019 13:08

Quiet month in July with some more cash deployment and a minor reduction in NAV post divi. With cash at a respectable 5.2% now, including commitments, surely we will hear shortly of a fundraise. As their is no sign of a premium rating I assume it will be a C issue

[makinbuks] 30/7/2019 12:08

Cash crept up to 6.4% in June but encouragingly there was a small rise in the NAV indicating that at these levels the loan interest covers the dividend. If that were a trend over a number of months we may see the discount narrow.

44% now tied up in those top 10 listed loans and the earliest repayments there Dec 19 and Sep 20 so a prolonged period of stable returns looks likely

I guess we'll get something on further fundraising and wind up option once the holiday season is done

[makinbuks] 27/6/2019 17:52

Agreed, they absolutely need to scale up to reduce cost in percentage terms. Their planned targets were ludicrously optimistic but if they could convince the market they could deploy more cash I think they could gradually double in size. Another imperative is that they get the dividend fully covered on a month by month basis and stop eroding the NAV. Personally I don't think they will offer a wind up

[spectoacc] 26/6/2019 16:05

One minor point of interest - SQN/SQNX have really gone out of favour, now rivalling SSIF's discount. Different co's, but not so long ago the SQN's traded at premia.

Still a big s/holder of SSIF but will be having a think when the continuation vote comes up..

[makinbuks] 26/6/2019 16:00

Cash back to 5.8% which is still not bad considering the repayments

[spectoacc] 13/6/2019 16:37

The LSE is silly - 4k of SSIF UT'd at 89.5, meaning that is now the close. All MMs unmoved, two on 91p bid. Just means tomorrow it'll be showing a healthy rise, when it's neither gone down today nor will have gone up tomorrow.

[makinbuks] 29/5/2019 11:32

This months update shows some really significant moves. Cash down to 2.2%. The "Offshore Britain" loan has gone out from May 19 repayable to August so a refinancing. Still 7% to be repaid in May but we could finally be getting to the point where they are fully invested and look to come to the market for more funds

[makinbuks] 29/5/2019 11:29

Yes, last of the big spenders!

[spectoacc] 14/5/2019 07:51

Got to laugh:

"(the "Company" or "SSIF")

Director's Dealing

The Company was notified on 13 May 2019 that Susan Gaynor Coley, a director of the Company, purchased 2,000 Ordinary Shares on 10 May 2019 at a price of 91.999p per share.

Following the purchase Ms Coley is interested in 2,000 Ordinary Shares, representing 0.004% of the Company's issued share capital. "

[spectoacc] 25/4/2019 15:06

Thanks @Makinbuks