coop
Member of DD Central
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Post by coop on Sept 3, 2018 10:22:16 GMT
Think I would sooner short it tbh...
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coop
Member of DD Central
Posts: 714
Likes: 571
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Post by coop on Sept 3, 2018 10:38:43 GMT
"The company, which has raised more than £320m from venture capital investors, is burning through cash at a rapid rate. Its net loss narrowed from £46.6m in 2016 to £35.3m last year as its revenues increased from £50.9m to £94.5m. Heavy spending on marketing, including a recent television advertising campaign, ate up more than 40 per cent of revenues last year, raising questions about whether it can sustain its rapid loan growth without high borrower acquisition costs. The company’s free cash flow was a negative £24.2m in the first six months of the year, reducing its cash and cash equivalents from £88.9m to £65.2m in the period. " www.ft.com/content/7d1eb11c-af43-11e8-8d14-6f049d06439c |
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Post by GSV3MIaC on Sept 3, 2018 11:54:42 GMT
I got emailed .. quote: (the weasel words at the end being longer than the actual information section)
"
Important Funding Circle update
This is an advertisement and not a prospectus. Potential investors should not apply for or buy any shares in Funding Circle Holdings Limited (to be renamed Funding Circle Holdings plc) (the “Company”) except on the basis of information contained in a prospectus that may be published by the Company and which, if published, will be made available at corporate.fundingcircle.com.
Dear xxxxxxxx
Since Funding Circle launched 8 years ago, investors on our platform have lent more than £5 billion to over 50,000 businesses globally, earning attractive returns whilst supporting economic growth and job creation across the UK, US, Germany and the Netherlands.
Today we have announced the next stage of our growth and we’re delighted to confirm that we are considering proceeding with an initial public offering (IPO). This means Funding Circle’s ownership structure would change from a private company to a publicly listed company.
What this means for you
Should we decide to proceed with an IPO, there will be no impact on your existing relationship with Funding Circle. Additionally, we anticipate that you will have the opportunity to apply to participate in the IPO and become a shareholder in Funding Circle via an intermediaries offer.
Further information on this possible offer and the potential intermediaries involved will be available in due course. We anticipate any potential intermediaries offer to open in the coming weeks if the IPO proceeds. Once open there will only be a limited time in which to apply. Before making any investment decision you should speak with your own stockbroker or financial advisor.
We believe these developments highlight an exciting future for Funding Circle. Thank you for your continued support and if you have any questions about your experience at Funding Circle, please get in touch.
The Funding Circle team
This advertisement is issued by and is the sole responsibility of Funding Circle Holdings Limited (shortly to be renamed Funding Circle Holdings plc) (“Funding Circle”) and has been approved solely for the purposes of Section 21 of the Financial Services and Markets Act 2000 by Numis Securities Limited (“Numis”), whose registered address is at The London Stock Exchange Building, 10 Paternoster Square, London EC4M 7LT, and who is authorised and regulated by the Financial Conduct Authority. Numis is acting exclusively for Funding Circle and no-one else in relation to or in connection with the possible offer of the shares in Funding Circle and will not be responsible to anyone other than Funding Circle for providing protections afforded to clients of Numis and is not providing, and will not provide, advice in relation to the possible offer or any matter referred to in this advertisement. This advertisement does not constitute an offer or recommendation concerning the shares referred to in this advertisement or advice about purchasing shares in the Company and is not a substitute for independent advice about legal, financial, investment or tax matters.
Before purchasing any shares, you should make sure that you fully understand and accept the risks which will be set out in any prospectus which may be published by the Company at the time of any share offer and made available at corporate.fundingcircle.com. If you have any concerns about the suitability of shares in the Company, you should consult an independent financial advisor.
This advertisement is not for distribution or publication in any jurisdiction outside the UK, the Channel Islands and the Isle of Man. In particular, this advertisement is not for release, publication or distribution, in whole or in part, directly or indirectly, in or within the United States of America, Australia, Canada, Japan or any other jurisdiction where it would be unlawful to distribute this advertisement.
No reliance may be placed for any purpose whatsoever on the information contained in this document or on its accuracy or completeness. Apart from the responsibilities and liabilities, if any, which may be imposed by FSMA or the regulatory regime established thereunder, no liability whatsoever is accepted by Funding Circle, Numis or any of their respective members, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions otherwise arising in connection therewith. Any prospective investor is recommended to consult an independent financial adviser.
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Post by grahamreeds on Sept 6, 2018 11:53:28 GMT
No one with a diversified portfolio has lost money.
In the past 4 months I have made just £50. I have had 5 defaults, all early in the cycle, each time eating nearly a months interest.
So, while you may say no one loses money, we are not exactly raking it in either. My annualised rate is just under 5% and dropping.
However, I did sell up a load and moved it into the ISA which made my classic account bottom heavy with the unsellable-but-not-defaulted.
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dorset
Member of DD Central
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Post by dorset on Sept 6, 2018 12:03:41 GMT
I made decent returns until 2018.
I started to rundown my FC loan book in September 2017. However as of today I still have over 1000 separate loans which means decent diversification. But with 54 defaults since April 2018 I am now sitting on a £50 capital loss for the 6 months.
Please explain FC and will the problems lurking in the FC loan book emerge before or after the IPO?
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Post by grahamreeds on Sept 6, 2018 12:21:54 GMT
Can I have a pound on it appearing 6-9 months after the IPO with increasingly dire headlines appearing in the broadsheets followed by apocalyptic headlines in the Daily Star with the execs being hauled before a committee of MPs after a further year?
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Post by Proptechfish on Sept 6, 2018 12:36:16 GMT
Think I would sooner short it tbh... Yea i'm torn whether to short, IPO's tend to drop quick after the hype, although i could be asking for trouble as i'm also a lender on the platform 
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Post by df on Sept 8, 2018 19:43:50 GMT
No one with a diversified portfolio has lost money. In the past 4 months I have made just £50. I have had 5 defaults, all early in the cycle, each time eating nearly a months interest. So, while you may say no one loses money, we are not exactly raking it in either. My annualised rate is just under 5% and dropping.
However, I did sell up a load and moved it into the ISA which made my classic account bottom heavy with the unsellable-but-not-defaulted. Mine has dropped to 4.1%. Looking at existing "blacklist", I'm expecting it dropping below 4% in near future.
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cwah
Member of DD Central
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Post by cwah on Sept 10, 2018 13:20:00 GMT
I'm not too keen on funding circle as I had bad experience with them with defaulted loans.
Who else do IPO?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,330
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Post by ilmoro on Sept 10, 2018 13:51:33 GMT
I'm not too keen on funding circle as I had bad experience with them with defaulted loans. Who else do IPO? Do you mean for the purpose of investing in the FC IPO? In which case you dont appear to be able to invest through FC, there is no direct opportunity for platform members, but through intermediataries. The intermediateries have been announced today and includes most of the major share investment platforms www.altfi.com/article/4709_funding-circle-confirms-intermediaries-for-ipo. They will charge their standard fees etc.
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benaj
Member of DD Central
N/A
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Post by benaj on Sept 10, 2018 13:57:14 GMT
I'm not too keen on funding circle as I had bad experience with them with defaulted loans. Who else do IPO? I am not good at picking IPO, but if you managed to get something like Microsoft, invest and hold for 32 years, the value would have increased by 10800%!
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jimbo
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Post by jimbo on Sept 11, 2018 11:06:03 GMT
The vast majority of IPOs will see you lose money. The following gent puts it far more succinctly than I ever could: capitalistexploits.at/2017/02/things-youll-never-believe/The key takeaway from the blog post by a gent by the name of Chris Macintosh is the following: "You’re playing on the gullibility of the retail guy. And for the retail guys amongst you, remember this and etch it into your brain: IPOs are NOT an entry. They are an exit. Realise that you are the last in line after founders, venture capitalists, lawyers, and investment bankers. They are all looking for liquidity – exiting."The following quora post sums up how VC's operate: www.quora.com/Why-do-VCs-look-for-an-IPO-or-an-acquisition-as-an-exitPersonally, whilst I wouldn't immediately short this IPO, I am watching with interest because I'm anticipating I will see the founders and their VC backers, perform an exit of some kind. They will be selling to anybody who takes up the IPO (you're buying their shares from them), and after the IPO, they will have a more liquid market into which they can sell further should they wish to do so. Whilst I wouldn't expect a complete exit from the founders, I will be watching closely to see how much they do exit and how much skin in the game they retain post-IPO. If it's not so much as a percentage of total shares in issue, then this will tell you everything you need to know about what they think about prospects for future growth and profitability. Personally, I would not touch this IPO with a 10 foot barge pole. I am an interested observer in that it will tell me much about how the founders and VC's see the future growth path and profitability of this Business. Remember that these are the people who are closest to this company and know it the best. Once a company lists, its longer term survival is all about cashflow and profitability. Should the Funding Circle model prove to be a long term success, you'll have plenty of opportunities to buy the shares on the Stock Market after they list. Remember that this is a company whose loan book has not yet seen a recession. This will be the proof in the pudding. In my opinion they are IPO-ing now for a damned good reason - they may not get another chance this side of a recession. |
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invester
P2P Blogger
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Post by invester on Sept 11, 2018 12:49:53 GMT
I wonder what price it'll come on at. Other lenders in the distressed sector (and I would be inclined to call it that, why else would one choose a FC loan) trade at relatively modest multiples, even though there are only losses here.
Not so sure it makes a great investment, unless of course you believe that it can conquer the world.
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Post by jordan on Sept 13, 2018 9:15:45 GMT
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Post by dan1 on Sept 19, 2018 15:21:25 GMT
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