Britannia finance

Edelin, dozey. Its not on the London Stock Exchange.

Glenn, I see its down today. Got the monk on have we?. I certainly will keep digging that hole as there is gold down there in those holes, he he.

Time we got back to the issues on this company and not the personal attacks and ramping (245 threads started by outsider/thirdeye on this one alone on UQ.com).

Heres the upto date facts, yes facts and questions that need answering but havent been remotely touched upon by the pro-camp.........

unaswered Questions

What effect will increased interest rates have on the demand for Britannias product, and will this also lead to further bad debt?.

What effect will the new Bankcruptcy law have on bad debt for Britannia?.

Question 6 from outsider/thirdeye.

6. Will new government legislation re: credit affect BFH in any way?


The objective of the new legislation is to protect the consumer and encourage responsible lending. New laws include making the terms and conditions of the agreement clearer, harmonising interest rate calculations, providing information regarding settlement figures at various points of time in the future and amending settlement rebate calculations. There are also a number of new laws which will aim to crack down on illegal lenders acting without a Consumer Credit Licence.

Now the bold print is exactly what I have been saying over the weekend. This will lead to lower margins for Britannia if the loan is settled early. But where was the pressing from thirdeye???????????????????. And lets face it as per the groupies conclusions, britannia have the cream of the crop and their customers will be the ones who can pay off early.

We also have increased costs in the form of new IT, well thats certainly going to errode margins initially.

And then we get a reply saying that costs from admin have been transfered over to the cost to sell, admin costs more or less stay stagnant but cost to sell increases by well over 110%. Laughable, cost arent fixed thirdeye they are rising all the time.

Conclusion, on looking at this interview I can only give one verdict and that is a BIG fall in Margins within the next 12 months. That coupled with the ever worsening Macro outlook leaves me to beleive that the share at present is way overvalued and in due course the market will realise this and the price will fall back to a fair price of around 27p, and that is very generous in my opinion.

regards oliver.

ps, holders now starting to see its overvalued.