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The P2P lender Basset & Gold collapsed into administration yesterday as Assetz capital asks its investors to vote on a 3 to 6 month period for pausing or reducing payments. The FCA yesterday set out their expectations for firms to offer a temporary freeze on loans and credit cards where consumers face difficulties as a result of coronavirus for up to 3 months without affecting consumers credit ratings.

CMC Markets – Pre Close Update

Share Price 194p

Mkt Cap £560m

Conflict Disclosure:No Holding

  • Update – “Strong trading” results in 12 month gross income of £241m (+11.6%) despite the first four months of the prior year being pre ESMA regulations. CFD net trading revenue is expected to be £214m (+94%). Stockbroking revenues expected to be £32m (+106%) driven by the ANZ white label partnership in Australia. Operating costs expected to be £136m (+13%).
  • Estimates – This looks like operating profit will exceed £100m against a £85m forecast.
  • Valuation PE 7.6X Yield 6%. Compares with Plus 500 PE 8.8X and IG Group 14.9X
  • Conclusion It looks like we are all sitting at home spread betting. If this is not sustainable maybe the shares should be cheap but there could still be more upgrades yet to come.
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Cenkos – COVID 19 Update

Share Price 40p

Mkt Cap £22m

Conflict Disclosure: No Holding

  • Update Results are being deferred following the general FCE request. Results expected to be in line with 18 February update which is to report a profit for the year after £1.4m of exceptional costs. Cash at 1 April was £23.8m.
  • Balance Sheet The last reported NAV was £25.9m, most of which is in cash at 1 April.
  • Valuation 5% discount to NAV and small discount to cash.
  • Conclusion This is the time to own these stocks as there could be a reasonable amount of rescue funding to do further down the line. Numis for the more risk averse investor and Cenkos for the higher risk/return investor.

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