Shawbrook Share Discussion Threads

[melody9999] 12/11/2015 08:26

when the price was agreed, the SHAW share price was likely much closer to 335p than it was yesterday. on this basis I am struggling to understand why we are now under the placing price. have added a few more

[masurenguy] 12/11/2015 07:46

This will inevitably negatively impact the shareprice today. The other issue is the potential overhang of further share sales by SOF once the 90 day lock-up period expires.

RNS Number : 4640F
Shawbrook Group PLC
12 November 2015

Completion of Placing of Shawbrook Group plc Shares

The company has been informed that the Special Opportunities Fund (Guernsey) LP ("SOF"), advised by its investment advisor Pollen Street Capital Limited ("PSC"), announces that it has agreed the sale (the "Placing") of 25 million shares (the "Placing Shares") in Shawbrook Group plc (the "Company"). The Placing Shares represent 10% of the Company's issued share capital. The final offer price was set at GBP3.35 per share. On completion of the Placing, SOF will hold, in aggregate, 111.5 million shares in the Company, representing 44.6% of the issued share capital of the Company. The remaining shares in the Company held by SOF will be subject to a lock-up period of 90 days from completion of the Placing (subject to certain customary exceptions), which can only be waived with the consent of Goldman Sachs International, who acted as sole bookrunner in connection with the Placing.

[masurenguy] 05/11/2015 07:13

Good continued progress in Q3.

RNS Number : 6252E
Shawbrook Group PLC
05 November 2015

Interim Management Statement - Q3 2015
Shawbrook Group plc - Strong organic originations at high risk adjusted returns

Shawbrook Group plc ("Shawbrook" or "the Group") today issues its Interim Management Statement relating to the third Quarter from 1 July to 30 September 2015 ("the Quarter").

Tom Wood, Interim CEO and CFO said: "These results continue to demonstrate the successful execution of our strategy and we are pleased that the Group continues to deliver strong growth, with originations and loans to customers up 27% and 23% respectively, driven by growing demand for lending from UK SMEs. We also significantly increased profitability during the period, with underlying PBT up 68% whilst maintaining Net Interest Margin at 6.1%. Commercial Mortgages, Asset Finance, Secured and Consumer divisions performed particularly well, both in terms of originations and new product launches. The full roll out of personal lending and savings offerings and a number of further attractive product and market adjacencies will reinforce future growth and we remain confident in our continued ability to deliver our near and medium term targets."

Key Highlights

· Underlying profit before taxation grown by 68% (Q3 15 YTD vs. Q3 14 YTD), driven by increased originations and continued operational leverage

· Organic originations up 27% in the nine months to 30 September to £1.21bn (LTM to 30 September 2015: £1.63bn; LTM to 30 September 2014: £1.28bn)

· Net loans & advances to customers increased by 23% to £2.86bn in the same period

· Strong origination pipeline with the Group on track to deliver full year originations in excess of £1.6bn and net lending growth of £0.7bn - £0.8bn

· Commercial Mortgages increased originations by 23% to £441m in the nine months to 30 September 2015 and expanded its product offering, including successful entry into the regulated short term lending market

· Consumer delivered 36% growth in new originations to £64m in Q3 2015 (Q3 2014: £47m) with personal loans seeing a 700% increase in originations to £9.5m in the same period

· Asset Finance increased originations by 36% to £126m in Q3 2015 (Q3 2014: £93m), with new product launches from 2014 to 2015 delivering material additional originations

· Strong growth in our new ISA products with plans to fully launch an Easy Access offering in Q4 2015 following a successful pilot

· Formation of a joint venture with Urban Exposure to provide end to end funding solutions to established property development companies

· The year to date return on tangible equity for the Group was 25.0% with a pro-forma Total Capital Ratio of 19.2% as at 30 September 20151

Outlook

Our strategy will continue to deliver growth in organic originations at high risk adjusted returns. We maintain our focus on the high quality of the lending portfolio, supported by prudent levels of capital, funding and liquidity and the Group continues to explore a number of attractive product and market adjacencies where attractive returns can be generated by deploying our specialist approach and proven relationship-based lending model. Overall, the Group remains well positioned and remains confident in delivering our near and medium term targets.

[jackthecat] 18/9/2015 19:18

too many in the same space, and SHAW are last in...

good luck, they will need it

[masurenguy] 27/8/2015 08:41

I'm very surprised that the SHAW shareprice has not risen this morning following the recent sparkling results from their other contemporary challenger banks, OSB and ALD.

[masurenguy] 12/8/2015 13:19

Pollen Street Capital still retain a 59% shareholding in Shawbrook following the April IPO. They could start to divest this in October after their 6 month lock-in period expires, so there could be a potential overhang on the shareprice in due course.

[future financier] 28/7/2015 18:03

jackthecat - SHAW are expanding fast and that will explain some of their XS costs - but your information about their interest rates is just plain wrong.

They are typically 1% - 1.5% p.a. more than the high street (e.g. Lloyds and its subsidiaries) - IF the high street would be prepared to lend. But for instance in the BTL space many lenders restrict the number of BTL properties that the investor may own. This opens the doors for SHAW to charge a modest premium for making a (high quality) loan that others would decline for no rational reason.

The same applies in other segments of their lending - you need to make sure you are comparing like with like! And I know for sure that on a like for like basis SHAW is very similarly priced to ALD.

You are also wrong about their cost of funds. Yes they have VC shareholders - but this is now a listed company and whilst the VCs may be subject to a ? 12 month? lock-in it is the dynamics of the Stock Market that now determines their main cost of funds - although they did raise some £27m of subordinated debt on favourable terms in October 2013 (certainly paying a lot less than ALD paid for similar subordinated funds). I suspect that their overall cost of funds is very similar to many of the larger banks - who as I have already said and (almost without exception) are having to fund the costs of former misdemeanours.

[jackthecat] 28/7/2015 17:22

their costs do need looking at, you can tart with the insane amount of recruitment and new staff they have been dong in the last 2 years odds.

They charge more than slightly" more my friend.

SHAW are about 4%-6% flat rate in the business market. ( my nephew works for them)

Lloyds,ABN Amro, Santander, Northridge,Aldermore, Hitachi, Macqaurie bank are for example between 1.75%-3.25% in th same space.If you are in the business market, any the companies mentioned are MUCH cheaper than SHAW.

Shawbrook have venture capitalists are shareholders, who need a big return and Shaws cost of funds in relation to many in their space are sky high.

[future financier] 28/7/2015 13:01

Underlying profit up by 94%!

But I am not happy.

H1 2014 £17.9m; H1 2015 - £34.8m BUT 2014 total was £49.1m so H2 2014 was £31.2m giving an increase over H2 of just 11.5% to give annualised growth of 25%.

Not quite so impressive.

I think some of their costs need looking at ......

[nw99] 23/7/2015 14:12

Gone long shares oversold

[future financier] 23/7/2015 09:37

How right you are jackthecat - SHAW is nothing like a "real" bank:

No Government bail-outs
No PPI or swaps mis-selling
No LIBOR rigging
No lending to Greece
No executives being paid millions for destroying the business
No destruction of client businesses by their so-called "recovery" division

SHAW is not "virtually sub-prime" - but they do charge (slightly) more than the cheapest lenders because they operate in areas where the "mainstream" lenders do not have the skills to operate.

And they are (currently) making good money - but they have been hit by two tax changes. And maybe the market is over-reacting.

[masurenguy] 22/7/2015 15:31

Based upon the above quoted Numis figures the PER at the current price is circa just 10. That is less than half the current PER of STB where the shareprice has quadruped in 4 years since listing.

[darryn1] 17/7/2015 10:57

Numis forecasting EPS of 23.8p this year, jumping by 35% to 32.3p next year.

[nw99] 14/7/2015 12:39

JPM beats should help the banking sector

[nw99] 13/7/2015 12:07

Nice buy rec in Sharewatch

[jpuff] 08/7/2015 16:47

What's happened here. Relieved I didn't buy yesterday but glad I did today as it looks over done!

[future financier] 08/7/2015 16:09

Way over-reaction - how much of SHAW is BTL?

[melody9999] 23/6/2015 22:36

Breakout imminent looking at the chart.

[thread perry] 12/6/2015 01:04

Nice gain from the IPO so far and i think 350p would be the lower support and
forward range to 445p region by years end.Will be adding on any dips :-)

[melody9999] 12/6/2015 00:06

Maz - trackers buying in just prior to FTSE250 entry could also be the reason. Bit of a hiatus typically before the share price continues up again.

[mazeltov] 08/6/2015 16:00

Have been buying a few times since float,think price has drooped back because of general market sentiment,I.e.Greece but will soon return,as long as they don't put too many eggs in one basket,I.e.like the big boys did in real estate we will be on to a winner

[future financier] 22/5/2015 12:38

ALD is also on a roll - could be on back of commentary referring to direct entry in FTSE250

[darryn1] 14/5/2015 18:26

Somebody is confident buying 100,000 at £3.33 today.