shimself
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Post by shimself on Jun 28, 2016 18:50:08 GMT
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Post by Deleted on Jun 29, 2016 11:08:49 GMT
Be interesting to see what GLI do with FK. Whether they integrate it into one of the other, more successful platforms under their umbrella or simply provide cash to try and push it into self-sufficiency with potentially a change in business model? Does anyone know if the acquisition means that FK will once again be receiving liquidity to fund deals from GLI?
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Post by jackpease on Jun 29, 2016 11:21:35 GMT
I'm surprised it has taken so long, i have nearly £500 with them most of which are unsellable loans.
Shame, friendly and responsive bunch, it was a good platform and did everything right and nothing wrong - but just failed to gain the volumes and presumably it was left to scoop up loans rejected by everyone else.
Given that there are other platforms that are similar, i imagine the discussion may verge towards 'who's next' which may end up as a self fulfilling prophecy.
Jack P
PS - New owners: any chance of going after the fat cats at W***** P**** who took the money and ran?
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Post by Deleted on Jun 29, 2016 11:38:34 GMT
"...a good platform that did everything right and nothing wrong..." - clearly it did do something wrong otherwise it wouldn't be in administration!
But anyway, I agree that I think this is a sign of the times and that many of the other smaller platforms will move in a similar direction (either just go bust, or are acquired by larger platforms/aggregators and merged into their operations or just folded up to get rid of the competition), unless they are able to carve out a sustainable niche for themselves.
Who's next? I reckon <edit> (lots of defaults) or the other many platforms on the forum that I can't remember...
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Post by jackpease on Jun 29, 2016 12:13:59 GMT
"...a good platform that did everything right and nothing wrong..." - clearly it did do something wrong otherwise it wouldn't be in administration! By selectively quoting half my sentence you've missed my point (too small) - and there are other platforms with very similar offers and of similar sizes. Westonkev has in the past made some very pointed comments about platform profitability - i think he had some in mind - wonder if this was one of them? J
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Post by easteregg on Jun 29, 2016 12:30:59 GMT
Companies can only run at a loss for so long. Their backers need to see that there is a path to profitability, and for a number of smaller P2P companies that path is too long or non-existent. I hope that Funding Knight can flourish under GLI, but I note that the GLI share price has fallen by 60% over the last year. blog.p2pmoney.co.uk/funding-knight-bought-by-gli
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Post by Ton ⓉⓞⓃ on Jun 29, 2016 12:46:25 GMT
"...a good platform that did everything right and nothing wrong..." - clearly it did do something wrong otherwise it wouldn't be in administration! But anyway, I agree that I think this is a sign of the times and that many of the other smaller platforms will move in a similar direction (either just go bust, or are acquired by larger platforms/aggregators and merged into their operations or just folded up to get rid of the competition), unless they are able to carve out a sustainable niche for themselves. Who's next? I reckon <edit> (lots of defaults) or the other many platforms on the forum that I can't remember... I don't think it's appropriate the idly speculate which if any business is going to call in the Administrators, if that is what happened with FK. Unless you have evidence, hopefully substantial, but as you seem to have deleted your account I assume you have no evidence other than the number of defaults as such I will/have removed your guess.
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jjc
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Post by jjc on Jun 29, 2016 13:04:21 GMT
The £750k price tag (for an operating platform’s live loan book, software, staff, origination relationships, a modest but existing lending base etc) caught my eye, also wrt P2P platform valuations. An eye-opener for others pitching themselves at mid 8 figure sums?
Granted it’s probably more complicated than that given the history between GLIF & FK (then again given that presumably one motive for GLIF’s purchase is to protect their existing investment & exposure on FK it may be that the price paid was significantly higher than what other unrelated parties would have been willing to bid).
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jjc
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Post by jjc on Jun 29, 2016 13:21:52 GMT
Glancing now at this link www.londonstockexchange.com/exchange/news/market-news/market-news-detail/GLIF/12870999.htmlIf I’ve understood the numbers correctly, it would appear the £750k price tag means GLIF are valuing their existing investments in FK at 31p in the £, & implies a 0.024x multiple on FK’s £30.7m (AltFI) all-time origination. If the actual cash price paid is £350k (450 seems to be an advance on their 1m loan) GLIF are valuing their existing skin in the game at just 15p in the £, & the multiple implied is 0.011x In any case FK’s £2 loss for every £1 turnover in last financial year is revealing. Until P2P platforms start to generate profits (or at the very least show they can reduce losses as they scale) the valuations bandied about to date in P2P look rather high to me. |
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jjc
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Post by jjc on Jun 29, 2016 13:29:39 GMT
Naughty naughty samford71 . No, I wasn't implying anything particular wrt to any single platform - more like indicating how things don't seem to add up across the board on P2P (on the multiples many seem to take for granted). Early days yet though. However things pan out in future I think a little dose of reality is a good thing. |
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oldgrumpy
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Post by oldgrumpy on Jun 29, 2016 15:15:04 GMT
Mmmm! The money provider disagrees with the platform, withdraws underwriting funds "amicably", waits a few months (lurking on the periphery), and oh by jingo FK goes into surprise administration and the money provider leaps in and buys it on the cheap to rescue it .... and take over.
Just hope Kay and the others are kept on.
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Post by reeknralf on Jun 29, 2016 15:42:07 GMT
The £750k price tag (for an operating platform’s live loan book, software, staff, origination relationships, a modest but existing lending base etc) caught my eye, also wrt P2P platform valuations. An eye-opener for others pitching themselves at mid 8 figure sums? Granted it’s probably more complicated than that given the history between GLIF & FK (then again given that presumably one motive for GLIF’s purchase is to protect their existing investment & exposure on FK it may be that the price paid was significantly higher than what other unrelated parties would have been willing to bid). What are you implying there jjc ? Are you implying that given P2P platforms have been known to be valued against vs. cumulative origination, then given FK has originated £30mm in loans but is only worth £750k, that a platform that had originated say £120mm in loans might not be worth the £25mm floor price on the converts that were sold last year? Perish the thought. I'm sure the're worth every penny I overpaid! That's not overpaying! Emoneyunion, loans to date: £1,682,015, is to be listed on Crowdcube tomorrow, at a pre-money valuation of £25M. An eye-watering 15x multiple. Better still the firm is apparently worth 18 times more than the previous funding round.
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shimself
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Post by shimself on Jun 30, 2016 11:39:59 GMT
That's not overpaying! Emoneyunion, loans to date: £1,682,015, is to be listed on Crowdcube tomorrow, at a pre-money valuation of £25M. An eye-watering 15x multiple. Better still the firm is apparently worth 18 times more than the previous funding round. Stone me!
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stevio
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Post by stevio on Jun 30, 2016 19:58:12 GMT
Be interesting to see what GLI do with FK. Whether they integrate it into one of the other, more successful platforms which platforms are these? I don't know anything about FK - is this just a FK specific situation or does it have wider implications?
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shimself
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Post by shimself on Jun 30, 2016 21:21:19 GMT
Be interesting to see what GLI do with FK. Whether they integrate it into one of the other, more successful platforms which platforms are these? I don't know anything about FK - is this just a FK specific situation or does it have wider implications? Most platforms are not profitable- for a growing business that's not unusual and so they get investment, often by selling shares. If they seem to have stopped growing and are still losing money then their investors might reasonably decide to call it quits. In FK's case it looks like their new owners think that there might yet be a way to become profitable. There are other platforms which are losing money - practically all of them I think. Investors in other platforms could reasonably decide to give up as well, and maybe actually close them down, (there will be a a contract with someone to take over the admin of receiving and distributing repayments).
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