MULTI FINANCE PLC (MFL.N0000)

"Multi Finance Company Limited, a Central Bank regulated finance company acquired by Entrust Group of Companies, is to announce its Initial Public Offering (IPO) in the near future."
http://www.thebottomline.lk/2011/04/03/page5.html

will it be next IPO?
http://www.entrust.lk/Index_files/Page400.htm

[quote="kirihttp://www.thebottomline.lk/2011/04/03/page5.html[/quote]

In the news story above it says :-

Due to the lull in the Bourse due to the upcoming traditional New Year season, the IPO will be announced during the latter part of April or early May.

Will it like that Senkadagala Finance scenario..!

http://www.cse.lk/cmt/upload_cse_announcements/5381305260998_.pdf

Apr 19, 2011 (LBO) - The Multi Finance Company, a finance company once part of the troubled Ceylinco financial services group, is to list on the Colombo stock exchange by June to conform with regulatory requirements.

http://www.lankabusinessonline.com/fullstory.php?nid=85393318

Site : http://mfcl.entrust.lk/index.asp

Managers to Multi Finance listing have bought shares in company in May 2011

Multi-Finance will be the newest finance company to list tomorrow.

But there is a difference this time.

Its Introductory document shows its current controlling owner Entrust Ltd, has sold over a million shares on 4th may 2011, with a large number of shares being bought by the managers to the issue Capital Alliance and some of its top employees

Why is the CSE allowing this kind of conflict of interest ? At the very least, managers to issues and their employees should be independent.

since this also will be listed by way of introduction, the existing shareholders transfer some of their holding to known parties, see what happen to the already concluded introductions

Thanks cse.alpha for revealing this misconduct.

As we know about these dealings now, need to be extremely careful in trading with this share once it is introduced.

Sri Lanka-based Multi Finance PLC’s Outlook has been revised to Negative from Stable, by Fitch Ratings.

At the same time, the agency has affirmed MFP’s National Long-Term rating at ‘B+(lka)’.

Fitch says, the revision of the Outlook reflects MFP’s weakening liquidity profile and net losses due to higher borrowing costs and increased operating expenses driven by branch expansion and relocation.

It also says, the net losses in nine months ending December-2012 have also resulted in sharply decreasing capitalisation which, however, remains commensurate with some of the higher-rated peers.

“The ratings also reflect the company’s small asset size and less established, but growing, franchise relative to that of domestic peers”, the agency added in its rating release.

Below is the full rating release issued by Fitch

Fitch Ratings-Colombo/Seoul/Singapore-18 March 2013: Fitch Ratings Lanka has revised Sri Lanka-based Multi Finance PLC’s (MFP) Outlook to Negative from Stable. At the same time, the agency has affirmed MFP’s National Long-Term rating at ‘B+(lka)’.

Rating Action Rationale

The revision of the Outlook reflects MFP’s weakening liquidity profile and net losses due to higher borrowing costs and increased operating expenses driven by branch expansion and relocation. The net losses in nine months ending December-2012 have also resulted in sharply decreasing capitalisation which, however, remains commensurate with some of the higher-rated peers. The ratings also reflect the company’s small asset size and less established, but growing, franchise relative to that of domestic peers.

Rating Drivers and Sensitivities

The rating may be downgraded if MFP is unable to secure sources to fund its large maturity mismatches along with unstable deposits, which could cause further liquidity pressure, and a widening of net losses weakening its profitability and capitalisation. Conversely MFP’s ability to stem the deterioration of its liquidity and profitability could lead to the Outlook being revised to Stable.

Fitch expects liquidity pressure to remain intense as cumulative maturity gaps under 12 months are high with limited confirmed unutilised credit lines at end-2012. MFP will have to source deposits or obtain borrowings to fund its existing mismatches. MFP has a revolving credit line from its parent, Entrust Limited, but repayment is on demand. Liquid assets to deposits decreased to 10.3% in the nine months to the financial year ending March 2013 but remained within regulatory levels. Deposits grew 52% in 9MFY13 but are concentrated with top five depositors accounting for 29% of total deposits. Any deposit outflows could further exacerbate current liquidity pressures and warrant a negative rating action.

Net interest margin (NIM) decreased to 9% in 9MFY13 (FY12:12%) as funding costs increased with higher borrowings. This, alongside an increase in operating costs, drove return on assets (ROA) to negative 2.3% in 9MFY13 from 2.9% in FY12. Fitch expects that maintaining NIM will remain challenging due to uncertainty over the terms for refinancing its securitisation loan maturing in 2013 and weak credit demand in the economy. MFP’s profitability is likely to remain under pressure unless new branches break even and borrowing costs decline.

Fitch also expects capitalisation to come under pressure unless loan growth is moderated and MFP resumes profitability. Loan growth and accumulated losses at 9MFY13 led to a decline in equity/assets to 25.2% (FY12: 41%) which, however, remains higher than some of its higher- rated peers. Solvency weakened with three-month net non-performing loans/equity increasing to 38.2% in 9MFY13 (FY12: 6.5%).

Asset quality weakened with its three-month NPL and six-month regulatory NPL ratio increasing to 13.9% and 1.8% in 9MFY13, respectively (FY12: 3.3% and 0.9%) but remaining in line with peers. Fitch expects asset quality to be weighed down by inflationary pressures and a weak domestic economy. Provisioning cover remained low with Loan loss reserve/three-month NPL at 4.7% in 9MFY13 (FY12: 6.5%). This is largely because three-month NPLs do not require regulatory provisioning.

MFP’s lending portfolio consists mainly of vehicle financing (end-2012: 91%). Fitch expects loan growth to slow due to the weak demand in the vehicle market.

MFP is a licensed finance company that is 86% owned by Entrust. The latter is an investment holding company and has other subsidiaries: Entrust Investments Limited. Entrust Securities PLC, Entrust Healthcare and Standard Credit Lanka Ltd. Entrust is 99.9% held by Pacific Trust (Private) Limited.

http://www.news360.lk/business-finance/news-18-03-2013-rating-sri-lanka-fitch-125189

MULTI FINANCE RECORDS SIGNIFICANT PROFIT

Multi Finance PLC reported a total turnaround of its results for the fourth quarter ended March 31, 2014 recording a net profit of Rs. 18.6 Mn, against Rs. 54.7 Mn loss year on year (YoY), as per published accounts.
During the quarter under review, net income from operations reached Rs. 39.9 Mn, 71% growth compared to the quarter ended 03/2013 which was recorded as Rs. 23.3 Mn.
The net interest income for the quarter ended 03/14 also increased with 24% reaching Rs. 31.7 Mn, compared to Rs. 25.6 Mn YoY owning to improvements in quality lending and strict credit processes introduced. Operating expenses of the company fell to Rs. 35.5 Mn as against Rs. 41.4 Mn YoY which is a 14% improvement mainly due to strict cost control mechanisms adopted.
Most significant is that the company's net impairment has recorded an outstanding improvement of 198% which is a reversal of Rs. 12.6 Mn as against a charge of Rs. 12.8 Mn in the quarter ended March 2013.
Further NPLs on leasing, HP and loans have come down to 4.41% quarter on quarter due to aggressive recovery techniques adopted by the company. Earnings per Share of the company have improved from -9.74% to 3.32% within the quarter while improving the company's quality of the asset portfolio. Return on equity has improved to 5.54% from -13.88% and Return on Assets is up by 83% from -4.09% to 1.25%YoY.
Multi Finance Chief Executive Officer, Pushpike Jayasundera said the total re-structuring of the company, introducing best practices in the industry, BPR carried out with regard to most of its processes were the key factors to achieve this significant results in the quarter.
"I am happy to announce that Multi Finance team managed to achieve this total turn around recording a significant net profit of Rs 18.6 Mn, up by 134% YoY. This achievement was possible due to the prudent management policies adopted at the right time and dedicated and motivated team said Jayasundera.
The company's had re-engineered its entire processes from lending, recovery to deposits to harness the best possible output.
- See more at: http://www.dailynews.lk/?q=business/multi-finance-records-significant-profit#sthash.QHDZYWzG.dpuf

Gainer can understand ur intention friend, why another new post for the same company very quickly

ESL holding of MFL both are illiquid stocks because more than 90% ESL holding

Last quarter ESL earning per share 3.09 and MFL earing per share 3.32

both are good finance companys very easy to move up

Gainer wrote:ESL holding of MFL both are illiquid stocks because more than 90% ESL holding

Last quarter ESL earning per share 3.09 and MFL earing per share 3.32

both are good finance companys very easy to move up

ESL is not the holding company of MFL. Also, ESL is not a licensed finance company. It's a primary dealer appointed by CBSL.

EWML wrote:

Gainer wrote:ESL holding of MFL both are illiquid stocks because more than 90% ESL holding

Last quarter ESL earning per share 3.09 and MFL earing per share 3.32

both are good finance companys very easy to move up

ESL is not the holding company of MFL. Also, ESL is not a licensed finance company. It's a primary dealer appointed by CBSL.

http://www.cse.lk/cmt/uploadAnnounceFiles/8591401191748_.pdf

Where does it mention MFL pl?

http://www.cse.lk/cmt/upload_report_file/1062_1408019326062.pdf

financial report out

MFL (Multi Finance) Going to take over

Multi Finance PLC is close to finalising potential investors to bring in new owners to the company, officials said.  ”We’re doing due diligences for some parties who have showed serious intent to buy this company.” He said that during the past six months many proposals have come and they were evaluated.  ”Among them were intentions to buy this company, part own and manage, etc.  We went through all proposals,” the official said.
He said that a due diligence is nearing completion for real estate and properly developer, Prime Lands which is the forefront to buy Multi Finance.
Prime Lands Group comprises four subsidiaries – Prime Lands (Pvt) Ltd, Prime Homes International (Pvt) Ltd, Prime Grameen Micro Finance Ltd and Living Homes (Pvt) Ltd.  He said that Multi Finance PLC, a new company with a moderate deposit base has attracted some firms that are growing inorganically.

MFL Similar GSF , Both are small share capital GSF trading at 30 Levels  and  MFL also easy to move up 30 levels.

MFL very illiquid stock with this news it can move up new high price.




MFL only 7% Shares in the retailers hand easy to move up

What is the source?

https://www.cse.lk/cmt/uploadAnnounceFiles/2141468235144_1062.pdf

MFL minimum target 23.00

One offer got 11 and another one 12.50 levels. So how can it reach 23?

MFL my cost 12.78

Gainer wrote:MFL my cost 12.78

ithin apita mokada