Vpc Specialty Lending In... Share Discussion Threads

[rogerrail] 10/7/2024 18:40

No, as I indicated previously, the Wefox write down was greater than 3%, actually 4.15 % of NAV, elsewhere there was a capital gain.

[chucko1] 10/7/2024 17:10

No - they specifically stated that his was almost entirely a WeFox writedown. The RoC was adjusted previously.

[creme de menthe] 10/7/2024 13:01

Isn't that 3% just a return of Capital?

[nicholasblake] 10/7/2024 09:46

If they were pleased to announce a 3% monthly decline, imagine how they’d have presented a rise?!

[chucko1] 10/7/2024 09:26

Debt investments and cash now account for 81% of investments with outstanding leverage of 17%. At the current sp, halving of other assets' value still allows for a decent return, albeit with a significantly extended average workout duration.

As ever, it is what is possible from now, regardless of what the heck has happened up to now - the proviso being that one was nifty with this when required.

GABI, this is not.

[rogerrail] 10/7/2024 09:06

Could have been worse. Wefox valuation cut by half (£8.5m) but now on a much stronger footing given the injection of capital , but other assets have increased by £2.3m. Wefox is a good business going forward once the problem areas are stripped off, given the whole of its valuation was being discounted by some I consider that a good result

[spectoacc] 10/7/2024 07:08

NAV still coming down to meet share price it seems.

[rogerrail] 03/7/2024 16:06

Dilution is not a factor with prefered shares. Not sure how it will effect the convertible debt.

[cc2014] 03/7/2024 11:28

So, either VSL has thrown more money in, possibly throwing good money after bad arguably like it did a month or two ago or it's got diluted.

[rogerrail] 03/7/2024 10:56

Less than 10% of NAV held in preference shares and convertible loan stock. Be thankfull they are not in the same positions as others such as Chrysalis.Can anyone explain what £5.2m on a converted cost basis implies? Is this what they have invested to the end of March 2024?

[redhill9] 03/7/2024 09:43

Regarding WeFox, I still find it staggeringly incompetent that VSL could get in a position of such high exposure to one entity.

[redhill9] 03/7/2024 09:42

HL have just sent a message saying "Dealing restrictions lifted - assessment of value update" and stating that it's now possible to buy VSL again through their platform.

[waterloo01] 03/7/2024 08:02

Open again for buying and selling on HL.

[cc2014] 02/7/2024 12:09

WeFox struggling again? This from yesterday

Chrysalis Investments (CHRY) has warned of a further writedown to Wefox as investors discuss options to restructure the loss-making insurance fintech that is its second-largest holding at 14.4% of net assets.

In an interim report released on Friday afternoon, chair Andrew Haining said since reports that Wefox was facing insolvency by the summer surfaced, investors had proposed a further injection of capital or potential disposals, which could further knock its carrying value ‘possibly by a material degree’.

The holding was previously written down by a third, or £62m, in the first quarter.

Chrysalis fund managers Richard Watts and Nick Williamson favour disposals by Wefox and are pushing for the use of independent investment banks to ensure any transactions benefit all Wefox shareholders.

[2wild] 18/6/2024 18:32

Up 10% from the 40.5p low 8 days ago. Market Waking up to the massive discount and yield on offer here, even after allowing for some write offs. If they maintain this Thursday's Ex 1.89p dividend for September and December, 5.67p. 6 month dividend return would be 12.6% at 45p. Plus a decent chance of another capital return near NAV by Xmas.

[brucie5] 18/6/2024 13:53

Grief it seems to be turning up.
;)

[wilwak] 14/6/2024 09:35

I guess they’re now using reserves to support the ‘interest̵7; dividend. Trimming it each time in line with the ‘reduction in nav due to capital repayments’ allows them to say that the ‘dividend is being maintained’ whilst minimising the use of reserves.

I was tempted to buy a few more shares but when I saw maturities extended from 2024 to 2028 it made me a little more cautious. Predicting ‘what happens next’ is difficult with VSL.

[brucie5] 13/6/2024 15:22

Bought some.

[spectoacc] 13/6/2024 07:52

Fair enough.

[feddie] 13/6/2024 07:50

Declared 1.89p

"The dividend declared of 1.89p represents a 2.00p equivalent dividend adjusted to reflect the reduction to NAV as a consequence to the B-Shares issued to shareholders on 19 April 2024 and redeemed on 25 April 2024".

[nicholasblake] 12/6/2024 15:38

@wilwak Surely not extend and pretend?

[chucko1] 12/6/2024 09:09

In the monthly, they have taken only a first write-down on WeFox, citing market equivalents. But they refer to further material write-downs in the months to come as more information comes in.

I suspect this will cap any share price rise where buyers are excited by the fact that you can now write off the non-lending assets entirely (including WeFox, clearly) and still make a 30%+ return. If you write off half the stuff, return is more like 50%, and on this basis, I bought a few back this morning. Only around a seventh of what I already owned, and still much lighter than previous positions based on the needlessly high price post capital return and material NAV drop. But 43p or so rather than the ex-cap 53p is a different proposition.

[wilwak] 12/6/2024 08:17

Thanks. I’ll open an account with them.

Quarterly report released today shows a lot of loan maturities pushed out from 2024 to 2028.

I guess this is to be expected as a lot of these loans would normally be expected to renew or roll over. VPC can’t just pull the rug out from debtors so are forced to roll over in to a new loan.

So long as they’re performing and the interest rates are good they should be saleable to a new lender.

It’s slightly alarming to see the new maturity graph but I guess it’s no surprise if being realistic.

[papy02] 11/6/2024 09:15

Ditto, bought another slice with II just now for 42.596 + Stamp Duty