Non-Standard Finance (NSF)

Sector:

Financials

12.10p
   
  • Change Today:
    -0.15p
  • 52 Week High: 105.97
  • 52 Week Low: 11.65
  • Currency: UK Pounds
  • Shares Issued: 312.44m
  • Volume: 1,771,068
  • Market Cap: £37.80m
  • RiskGrade: 6

Non-Standard Finance abandons plans to buy Provident Financial

By Michele Maatouk

Date: Wednesday 05 Jun 2019

LONDON (ShareCast) - (Sharecast News) - Non-Standard Finance has abandoned its hostile £1.3bn offer for larger rival Provident Financial.
The subprime lender said in a statement late on Tuesday that the offer would lapse after it learned that the Prudential Regulation Authority had concluded it would not meet minimum regulatory capital levels.

NSF had until the end of Wednesday to either declare the takeover unconditional or let it lapse.

Chief executive John van Kuffeler said: "I am very disappointed that despite our best efforts customers, employees and shareholders will not now benefit from our transformation plan to build a brighter future by combining Provident with NSF.

"I wish to thank our shareholders for their support and all of NSF's staff and self-employed agents for their continued dedication. NSF will continue to focus on delivering value to its customers, employees and shareholders by providing a helping hand to the 10-12 million UK consumers that are either unable or unwilling to access mainstream credit.

"Each of our businesses has a top three position in its respective market segment and we believe each is capable of delivering attractive long-term returns for NSF shareholders through a combination of capital and dividend growth."

Total fees for the transaction, which will be treated as an exceptional item in the 2019 half-year results, are expected to amount to between £10m and £10.5m before VAT, which is at the lower-end of the range estimated. NSF said the fees will be met from its existing resources.

Provident said in a statement on Wednesday that the outcome was in the best interests of its shareholders. It added that it "greatly regrets the unnecessary distraction, cost and impact of the uncertainty on Provident's customers and staff caused by NSF pursuing its extended hostile offer".

At 0855 BST, Provident shares were up 10% to 490.60p and NSF shares were up 2.8% at 45.70p.

Numis said: "The reason for the lapse was said to be the delay driven by the regulator, but we suspect NSF's capital position to be the major consideration. We believe Provident will have to take a charge of circa £20m to cover the costs of the deal, but the group retains surplus capital and is being valued at just 6.7x 2020 earnings. Compellingly cheap now the risk of having to support NSF has passed.

"Recovery is underway and the group remains a market leader in all business lines. However, the largest shareholder has a closed fund with substantial redemptions and the reasons why the original 49% of shareholders supported the offer still remain. Nevertheless, we believe the current share price has been driven by the market valuation of NSF and the probability of its offer succeeding, not by the fundamental value of Provident as it continues its gradual recovery."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

NSF Market Data

Currency UK Pounds
Share Price 12.10p
Change Today -0.15p
% Change -1.22 %
52 Week High 105.97
52 Week Low 11.65
Volume 1,771,068
Shares Issued 312.44m
Market Cap £37.80m
RiskGrade 6

NSF Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
96.73% above the market average96.73% above the market average96.73% above the market average96.73% above the market average96.73% above the market average
92.48% above the sector average92.48% above the sector average92.48% above the sector average92.48% above the sector average92.48% above the sector average
Price Trend
84.28% below the market average84.28% below the market average84.28% below the market average84.28% below the market average84.28% below the market average
80.56% below the sector average80.56% below the sector average80.56% below the sector average80.56% below the sector average80.56% below the sector average
Income
88.40% above the market average88.40% above the market average88.40% above the market average88.40% above the market average88.40% above the market average
82.50% above the sector average82.50% above the sector average82.50% above the sector average82.50% above the sector average82.50% above the sector average
Growth
60.40% above the market average60.40% above the market average60.40% above the market average60.40% above the market average60.40% above the market average
62.30% above the sector average62.30% above the sector average62.30% above the sector average62.30% above the sector average62.30% above the sector average

What The Brokers Say

Strong Buy 3
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 4
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

NSF Dividends

  Latest Previous
  Interim Final
Ex-Div 19-Sep-19 23-May-19
Paid 17-Oct-19 07-Jun-19
Amount 0.70p 2.00p

Trades for 05-Jun-2020

Time Volume / Share Price
16:29 221,504 @ 11.55p
16:21 50,000 @ 12.20p
16:20 2 @ 11.85p
16:05 9,853 @ 12.00p
16:05 24,000 @ 12.00p

NSF Key Personnel

CEO John van Kuffeler

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