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I read quite a lot recently about the failed floatation of Cabot Financial Group Limited due to analysts giving it "junk bond" status.
So I had a look at Hoist Finance UK Limited to see what their financial circumstances looked like.
Whilst the balance sheet shows equity of around £11m, the profit and loss account makes less impressive reading, for it shows they made a loss of £3.6m to 31 December 2015 and a further loss of £870k to 31 December 2016.
So the underlying trend is one of losses. Furthermore, if this continues, then one has to question the value of the assets (ie the loan portfolios) on their balance sheet. They may actually be worth less than Hoist are claiming. That was certainly the view taken with Cabot.
So I think the best thing that anyone on the receiving end from these companies can do is to overload them with letters and delay replying to correspondence until the last possible moment. Stretch things out as long as possible.
If you owe them a lot and do feel you have to make a settlement with them, pay as little as possible over as long a period as possible. Obviously, if its only £300/£400 for a mobile phone bill or the like, then it might be better just to pay it to get rid of it. But for something big, especially when you arer short of funds, the longer you can drag it on, the greater the chance there is of them giving up on you.
I think its only a matter of time before we see one of these firms going under.
What a great day that will be!
So I had a look at Hoist Finance UK Limited to see what their financial circumstances looked like.
Whilst the balance sheet shows equity of around £11m, the profit and loss account makes less impressive reading, for it shows they made a loss of £3.6m to 31 December 2015 and a further loss of £870k to 31 December 2016.
So the underlying trend is one of losses. Furthermore, if this continues, then one has to question the value of the assets (ie the loan portfolios) on their balance sheet. They may actually be worth less than Hoist are claiming. That was certainly the view taken with Cabot.
So I think the best thing that anyone on the receiving end from these companies can do is to overload them with letters and delay replying to correspondence until the last possible moment. Stretch things out as long as possible.
If you owe them a lot and do feel you have to make a settlement with them, pay as little as possible over as long a period as possible. Obviously, if its only £300/£400 for a mobile phone bill or the like, then it might be better just to pay it to get rid of it. But for something big, especially when you arer short of funds, the longer you can drag it on, the greater the chance there is of them giving up on you.
I think its only a matter of time before we see one of these firms going under.
What a great day that will be!
