Interims results were announced Wednesday, Michael Walters is a fan, & Ofex will undergo huge changes soon, with the introduction of Winterfoolds making a market in all stocks....Furthermore Ofex hope to have 5 mm's by 2004 end.


Britannia I think will move forward strongly without the changes, & I estimate this company already with 5.5 years of impressive growth is on a prospective p/e of circa 10 or 11 & that is with conservative accounting, their peers take circa 500 per customer won for marketing incurred, BFH don't if they did you can add about 1m to profits for the year. As it is I think Michael Walters is expecting circa 700,000

However the really wise thing to do, is not take a word of anything I write as read, but ring the company & check it out for yourselves. Mark up is currently circa 500% which means huge profits are to come, & costs are broadly fixed which mean turnover will at a point drop to the bottom line, & that is yet to happen!

The interims:

BRITANNIA FINANCE HOLDINGS PLC
BUSINESS: NICHE FINANCE

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2003

Britannia Finance Holdings plc, the OFEX traded finance group, announces its
unaudited interim results for the six months ended 31 October 2003.

HIGHLIGHTS

* Profit before tax up 229% over the same period last year from GBP123,822 to
GBP407,795
* Turnover up 49% from GBP1,060,046 to GBP1,575,689
* Portfolio size up 70% from GBP5.3 million to GBP9 million
* GBP442,000 additional equity raised through the Private Placing of shares
within the period
* Focus on niche premium rate motor finance business and customer quality
produces record interim results

INTERIM STATEMENT

We are pleased to report a record set of interim results (for the six months
ended 31st October 2003) with profits before tax up 229% to GBP407,795. The
group has enjoyed solid growth in turnover, without the proportionate increase
in costs. Basic earnings per share were 1.7p and diluted earnings per share
were 1.3p.

REVIEW OF OPERATIONS

BROKERAGE DIVISION
The brokerage division continues to perform satisfactorily with brokerage
commission totalling GBP473,610 for the half year (GBP662,439 for the same
period in 2002). The commission income is lower than the same period last year
due to the continued focus on the instalment credit division. As a result a
higher proportion of deals have been written in-house resulting in lower
commission income, but significantly increased interest income. The brokerage
division provides a valuable commission income on those deals which fit outside
the group's underwriting parameters. The group aims to write premium rate, low
risk business in-house. However, applicants which require lower interest rates
or fall outside our underwriting criteria are placed with a third party lender
in return for a commission. The brokerage division enhances our offering to the
motor dealer, by providing a one-stop shop for a wide range of applicants
allowing the dealer to maximise car sales.

INSTALMENT CREDIT DIVISION
The main focus of the group remains the profitable growth of the instalment
credit division. The group conducts a vigorous verification procedure to ensure
the ability of the customer to service the hire purchase agreement. The group
focuses on customer quality but wins business by offering flexibility with
regard to the age / type of vehicle financed. As a result of the focus on
lending to low risk customers the portfolio continues to perform excellently.
Both arrears and bad debt levels remain at extremely low levels. As at 31
October 2003 the total receivables had grown to GBP9,025,799; the total number
of cases was 1905, bad debts/write-offs amounted to 0.26% of the loan book and
just 26 cases were more than one month in arrears (representing 1.36% of
cases).

EXCEPTIONAL ITEM
The sale of the Jubilee credit book debt has contributed GBP153,960 to profits
during the period. The Directors will continue to monitor the available
opportunities within this market place.

OTHER
INTERNET PROPOSAL SYSTEM
The company has recently employed an IT Manager with the brief of implementing
an internet based proposal system. The objective is to create a paperless
environment and to allow for the input of data just once throughout the credit
process. It is anticipated that the new system will allow volumes to double
without the need to increase headcount within the new business department.

CUSTOMER RETENTION SCHEME
We are currently piloting a new programme designed to retain existing good
Britannia customers. The programme involves contacting the customer by letter
and telephone prior to settlement of the agreement to offer further car
finance. The initial testing has been positive and we plan to achieve high
levels of customer retention in future periods.

RAPID REPORT WEB-SITE
The Rapid Report web-site (www.rapidreport.co.uk) has recently been launched
with the aim of providing corporate credit searches on UK businesses and
directors. The service will allow small to medium-sized businesses to run
credit reports and receive financial data with regard to potential customers
and suppliers. A marketing campaign for the web-site is currently underway and
we look forward to reporting on the progress in the new year.

REGIONAL / NATIONAL ACCOUNTS
Traditionally the company has concentrated on servicing the needs of small to
medium-sized motor dealers. In addition to our core business the company is now
specifically targeting a number of much larger regional / national dealer
groups. The Directors are pleased to report a successful start to this new
campaign. The company has secured a deal with one major national dealer group
and expect a number of other groups to follow suit. The Directors look forward
to reporting the positive effect on sales which will result from this new
strategy in future periods.

PROSPECTS
Managing Director - Mark Burgess made the following comments about the future
prospects of the business.

"I am pleased to report significantly improved pre-tax profits for the half
year. The group's success is attributed to the entire team at Britannia. I feel
extremely proud of the energy and commitment displayed by each team member. The
outlook for the future is positive and I am confident that the increased
momentum will continue into the second half of the year"

The directors of the issuer accept responsibility for this announcement.

ENQUIRIES:

BRITANNIA FINANCE HOLDINGS PLC Tel: 0151 639 7666
Mark Burgess

RUEGG & CO LIMITED Tel: 020 7584 3663
Brett Miller

MIDAS INVESTMENT MANAGEMENT LIMITED Tel: 0161 228 1709
Mark Sheppard

BRITANNIA FINANCE HOLDINGS PLC
UNAUDITED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS TO 31 OCTOBER 2003
6 mths to 6 mths to
Note 31 October 31 October
03 02
(GBP) (GBP)
TURNOVER 1,575,689 1,060,046
Cost of sales (628,967) (306,038)
GROSS PROFIT 946,722 754,008
Administrative expenses (533,339) (574,818)
OPERATING PROFIT 413,383 179,190
Exceptional profits on selling Jubilee Credit
Ltd loan book 153,960 -
Professional fees relating to an aborted take
over offer (25,578) -
Interest payable and similar charges (133,970) (55,530)
Interest receivable and similar income - 162

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 407,795 123,822
Tax on profit on ordinary activities 1 (109,002) (20,919)
PROFIT FOR THE FINANCIAL PERIOD AFTER TAXATION 298,793 102,903

Basic Earnings Per Share 2 1.7p 0.9p

Diluted Earnings Per Share 2 1.3p 0.7p

BRITANNIA FINANCE HOLDINGS PLC
UNAUDITED BALANCE SHEET
AS AT 31 OCTOBER 2003
6 mths to 6 mths to
Note 31 October 31 October
03 02
(GBP) (GBP)
FIXED ASSETS
Tangible assets 108,040 127,302
CURRENT ASSETS
Stock - 7,850
Debtors 6,962,339 2,816,676
Bank and cash 248,541 139,314
7,210,880 2,963,840

CREDITORS : Amounts falling due within one year 4,676,450 1,066,432
NET CURRENT ASSETS 2,534,430 1,897,408

TOTAL ASSETS LESS CURRENT
LIABILITIES 2,642,470 2,024,710

CREDITORS : Amounts falling due after one year 1,021,977 1,211,196
1,620,493 813,514
CAPITAL AND RESERVES
Share capital 191,530 167,000
Share premium 813,220 450,000
Profit and loss account 3 732,643 313,414
Adjustment on consolidation (116,900) (116,900)
1,620,493 813,514

Notes:

1. Corporation tax has been provided on the adjusted results for period. The
tax assessed for the period is lower than the standard rate of corporation tax
in the UK. The difference is explained below:
Profit on ordinary activities before tax 407,795
Profit on ordinary activities multiplied by the
Standard rate of UK corporation tax of 30% 122,339
Effects of:
Marginal relief (16,038)
Expenses not allowable for tax purposes 4,333
Capital allowances in excess of depreciation (1,632)
Current tax charge 109,002

2. Basic earnings per share are calculated by reference to the profit after tax
and the weighted average number of one pence ordinary shares in issue
throughout the period of 17,291,798 ordinary shares (2002: 10,735,025 ordinary
shares). Diluted earnings per share are based on the weighted average number of
ordinary shares and share warrants in issue during the period of 22,281,926
(2002: 13,966,781).

3. Profit and loss account reconciliation:
Balance 31 October 2002 313,414
Retained profit - 6 months to 30 April 2003 120,436
- 6 months to 31 October 2003

Worried they might not make the million plus bottom line some have been hoping for. Results on Wednesday, worrying time for holders with the sector in trouble, intense competition, high interest rates (they already charge a shocking 31%p.a.) - better deals elsewhere - oh and the government's car sharing scheme, daft though it is for a 2 person lane, will reduce need for second car in many families.
Can see this one's engine stuttering over coming months - as the share price is reflecting - two moves in three months!

Another joint bulletin board job from Goldfinger and Hawick and you can also read their holding hands opinions on ADVFN and Sharecrazy. And who gives a toss about what Evil Knievel is shorting, he has lost more money in the last few months than most people make in a lifetime. Jarvis is one of the latest on his hit list and he is going to get his ass seriously burnt with that short. Malcolm Stacey has just bought a "shedload" (his words) of these.

hawick,

I don't see ANY families giving up the second car somehow, 2 car lane or no 2 car lane!

And whilst I agree that 31%pa is a criminal interest rate to charge, one would assume it is associated with greater lending risk, and that may actually result in MORE customers, if there is a serious interest rate increase!

As they clearly have a large customer base, there must be a reason for it, and whilst inertia is possible, my guess is that these people have been declined elsewhere at more favourable rates.

Problem is Andy as you will know this sector the lending of Finance to the motor industry is chock a block with competitors much larger competitors who are able to take on far more risk.

The bigger boys will move the goal posts in my opinion if they start to see applications down and that seems to be happening, and it will be the minnows who are squeesed.

I also feel that the market that Britannia feed off, second hand cars in the medium term/long term future will suffer from lack of supply as more and more people hold onto their new buy cars.

cheers GF.

I note the arrival of competitive mms has seen several ofex shares have their spreads widened indicating imho an enhanced risk factor.
Britannia widened briefly, might well indicate the overhang still in place.

Andy if they have been declined elsewhere, they are virtually by definition considered by others to be high risk customers, leading to a big increase in bad debts in the long run for britannia i fear. And a rise in interest rates will only lead to britannia raising their rates even further in line with competitors. I did not say it was criminal (not literally) but it can only catch up with them as the public become more savvy.

As for dunbarton, I note zero to contribute about Britannia, just attacking others. All too depressingly familiar style, typical of the whingeing " finny farmers'" teamworking tiny clique - they'll need a second phone box soon!

Well the results in the morning Wednesday.

Analysts go for any where between 705k and 775K. If the company do get within this range, one can only see the share price remaining dormant as it would put the shares on a historic P/E of between 14 and 16. Peers and competitors being a lot lower than this. Same applies to the progressive P/Es Britannia way higher again than any of its competitors or peers.

Everything and more is already in the price.

cheers GF.

Bad MISS on profits. 516,467 after tax. Forecasts i saw were from 650k upwards.
Diluted eps a disappointing 2.2p, diluted p/e a very demanding almost 20.

Outlook. FSA approval big worry time consuming, expensive, no guarantees despite their claimed "confidence". Worrying few months ahead only 300k in the bank reported by analyst recently as 'require imminent funding'. No sign of a dividend. Dividend, lol!!!

Third Eye says 2007 results in bag. 2004 missed his forecasts badly. Judge that for yourself! Outlook fails to address new customer numbers or economic concerns.

Third Eye said for the year just reported: "meeting 700,000 profit,(hope they meet at least 650,000)".

Every responsible analyst reports post-tax forecast these days.

They made 516,467. p/e 20.

2007 in the bag? Maybe a bin-liner.

Read again the first line of the first post: "Mike Walters is a fan".

No longer I can reveal to you, this from a poster on another site today:

"Mike basically says things are going really well, but he doesn't increase his forecasts and says others are perhaps seeking too much."

Another reason to get out while you can still get 40p.

Badly overvalued. Avoid.