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Post by bobthebuilder on Aug 26, 2016 0:20:10 GMT
Perhaps it's a measure of the attractiveness of Wellesley as an investment proposition that they've been reduced to the status of a sub-board on this forum
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Post by organum on Aug 26, 2016 4:57:18 GMT
My loans are all showing 88% on loan. Whilst I appreciate that Wellesley pay regardless of loans I wonder how sustainable the business model is. Too much dosh chasing returns I guess.
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tjtl
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Post by tjtl on Jan 7, 2020 19:16:42 GMT
From Shareprofits website today
Wellesley Finance has finally filed its 6 months overdue accounts for the year ended 31 December 2018 at Companies House and they are truly dire. The net loss before tax is £10,249,314 and a deficit on shareholders’ equity was £9,202,737. The auditors, unsurprisingly, cite a material uncertainty on going concern. Worrying times for the mini bond lenders who have lent £99,540,212 to Wellesley Finance Plc. A further £64 million in Peer to Peer assets is held off the balance sheet.
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pip
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Post by pip on Jan 9, 2020 10:50:57 GMT
Has anybody else noticed that with the property bond you need to make sure you select you want to end the bond 6 months before the expiry date now or it will continue. Not sure if this is to reduce the number of people able to withdraw when their bond matures.
My bond matures early June, no idea how the rules about marketing bonds to retail customers will impact on Wellesley’s ability to repay bonds.
It’s worth noting that the recently published results were very late with companies house and a whole year has passed since that period ended. What we don’t know is whether things have improved or deteriorated since then. I guess one good sign is that they are still in existence at least. Just hoping that lasts until June!
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tjtl
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Post by tjtl on Jan 9, 2020 12:26:01 GMT
To be fair to Wellesley they have always stated that they covered a substantial portion of earlier loan-losses from their own resources- and this will have hit their P&L. Also it is not entirely uncommon for private businesses to be late in filing report and accounts -particularly when their are emphases of matter to be dealt with. The "Going Concern" statement by the auditors is concerning- effectively the company is depending on the continued support of the shareholders to continue to trade for the next 12 months (from the date of signing the accounts- so 2020. It is therefore unlikely that 2019 results will have materially eased the situation). The good news is that the company hasn't thrown in the towel, they still are getting their mini-bonds listed on the Irish Exchange (I think), losses on recent loans appear to have been sharply reduced. The test will be whether there is sufficient new funds, or bank facilities, to redeem the raft of two-year bonds that fall due over the next quarter. Re the 6 months' notice- there is no issue about giving notice early (you don't get the money early, but it avoids you forgetting)- I have given notice on all my holdings- even those that expire in 2023. But again to be fair to Wellesley they have always sent reminders by email just before the 6 into notice period hoves into view. It looks, from their website, that they have trimmed the central team- if this is a sign that they are cutting costs to fit the new world, then good news. I am also pleased they have cut the silly TV adverts. What we do need from them is a bit more transparency around security (post the filing of the report and accounts)- such as a letter to all investors from Graham W, and a continuing repayment of monies as they fall due. I wish Wellesley well, very much hope they get through what looks to have been a tough couple of years.
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littleoldlady
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Post by littleoldlady on Jan 9, 2020 19:16:46 GMT
I can see the bonds listed on the Euronext Dublin Exchange but no sign of any trading in them. Is there any market for them?
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tjtl
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Post by tjtl on Jan 9, 2020 21:19:24 GMT
I am not aware of any trading, so the only confidence I take from the listing is that there is some regulatory inspection- but nothing like a UK equity listing. Still, if the company were unable to satisfy the Dublin Exchange that the bonds should be listed, then there would be more red flags- as said here there is perhaps some comfort. If anyone has any more detailed information on Dublin Mini-Bond Listings I am all ears (or eyes)
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littleoldlady
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Post by littleoldlady on Jan 10, 2020 8:03:41 GMT
I am not aware of any trading, so the only confidence I take from the listing is that there is some regulatory inspection- but nothing like a UK equity listing. Still, if the company were unable to satisfy the Dublin Exchange that the bonds should be listed, then there would be more red flags- as said here there is perhaps some comfort. If anyone has any more detailed information on Dublin Mini-Bond Listings I am all ears (or eyes) Thanks. I can't quite grasp the point of a listing on an exchange if there is no trading possible. But maybe I don't understand the meaning of "exchange".
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pip
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Post by pip on Jan 10, 2020 13:53:28 GMT
Quite honestly I have no idea of the health or status of the business. The corporate structure is really confusing, and the mix of retail bonds and company money to property bonds, coupled with other bonds secured by the company seems to have confused even themselves (look at the prior year re-statements!).
Also no idea whether the FCA restrictions on marketing bonds to retail investors will impact the companies ability to repay existing bonds.
In short I have no idea what is going on. From a selfish perspective all I hope is that they make it till June when my bond is due and I can take my money out and never worry about them again.
P2P is reminding me why I got out of being a landlord. Lesson in life 'don't keep putting myself in positions where I will have to deal with the consequences of other peoples issues'.
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Nomad
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Post by Nomad on Jan 22, 2020 2:34:04 GMT
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tjtl
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Post by tjtl on Jan 23, 2020 7:50:03 GMT
To be fair to Wellesley the 2018 losses are not news- those of us who are exposed to the loans, and Wellesley meeting part of the write-downs themselves, will have expected a pretty horrid 2018 set of accounts. More pertinent are the good and bad about now- the good is the statement (not audited) , that the business made some profit in 2019- the bad that their lending is becoming more concentrated to a smaller number of borrowers- the borrowers may have better credit ratings, but the lack of diversification and increased risk-concentration is concerning. Wellesley could do a lot worse than come out with a clear, unambiguous, statement as to their financial position, and their plans for continuing to raise money to fund redemptions and repayments- their communication with lenders over the past few years has been nothing short of abysmal- and the lack of communication only encourages doubts about the firms' very survival. they could do with getting lenders onside. I have a pretty significant exposure to Wellesley - well in to 6 figures, so I am anything but impartial. I would like to see it survive (obviously!)- but I would also like to see some real clarity. Over to you Wellesley.
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iren
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Post by iren on Jan 23, 2020 20:56:45 GMT
.... their lending is becoming more concentrated to a smaller number of borrowers- the borrowers may have better credit ratings, but the lack of diversification and increased risk-concentration is concerning... Just checked and I note my largest loan at Wellesley is 29.93% of my funds. This does appear to be excessive.
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