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PLT - Plenti Group

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I have been a investor on the platform lending out my money on the 1 Month loan and now the 5 year loan.

I did not buy into IPO because there are some negative issues that I dislike immensely. They say you can access your money through the early access withdrawal feature on the 5 year loan. But during in the early days of COVID I could not access my money at all and I tried several times over several weeks. Then just as things were looking brighter they brought in a cap for the interest you can set for the 5 year loan. It meant that where you could ask for say 8% before you can not do that anymore and it it set at a pre determined value now. So now there are less lenders in the 5 year loan which means you can not get early access again. They set a limit where they have to have a certain amount available capital to loan before they can release your funds.

So when the IPO came out the first thing I thought was "why would I invest in something I don't like myself"? I am very glad I didn't seeing how the price of it's shares have gone now.

I am still loaning my money out in the 5 year loan but I withdraw all capital repayments and interest as I go along and I will continue doing that until I get all my capital back. I just don't like the fact that they have an "early access" option but in reality you can't really use it until conditions are met. There have also been complaints by other investors that the 1 Month rolling investment sometimes isn't a Month and keeps rolling over. I have not experienced this though. There is a site called product reviews where you can see the complaints from those investing with plenti. Look at the last 8 Months of reviews and you will see that they are not too favourable. Here is the link: https://www.productreview.com.au/listings/plenti-investors

I am not saying whether you should buy their shares or not. What I am saying is that if they lose a large portion of investors (those that lend money) then where will they get funding from? Without investors what will happen to this company and the price of your shares? Just something to consider, cheers.
 
Bill M said:
I have been a investor on the platform lending out my money on the 1 Month loan and now the 5 year loan.

I did not buy into IPO because there are some negative issues that I dislike immensely. They say you can access your money through the early access withdrawal feature on the 5 year loan. But during in the early days of COVID I could not access my money at all and I tried several times over several weeks. Then just as things were looking brighter they brought in a cap for the interest you can set for the 5 year loan. It meant that where you could ask for say 8% before you can not do that anymore and it it set at a pre determined value now. So now there are less lenders in the 5 year loan which means you can not get early access again. They set a limit where they have to have a certain amount available capital to loan before they can release your funds.

So when the IPO came out the first thing I thought was "why would I invest in something I don't like myself"? I am very glad I didn't seeing how the price of it's shares have gone now.

I am still loaning my money out in the 5 year loan but I withdraw all capital repayments and interest as I go along and I will continue doing that until I get all my capital back. I just don't like the fact that they have an "early access" option but in reality you can't really use it until conditions are met. There have also been complaints by other investors that the 1 Month rolling investment sometimes isn't a Month and keeps rolling over. I have not experienced this though. There is a site called product reviews where you can see the complaints from those investing with plenti. Look at the last 8 Months of reviews and you will see that they are not too favourable. Here is the link: https://www.productreview.com.au/listings/plenti-investors

I am not saying whether you should buy their shares or not. What I am saying is that if they lose a large portion of investors (those that lend money) then where will they get funding from? Without investors what will happen to this company and the price of your shares? Just something to consider, cheers.
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yeah it seems all the liquidity has moved to the 1 month market, there is $3 Million sitting there waiting to be lent, but the 5 year market has much less liquidity now due to the reasons you mentioned.

it is still an attractive place to lend, but yeah we will have to see what the do to try and attract some of that cash from the 1 month market over to the 5 and 3 year market to increase liquidity.

the most the 1 month was delayed during COVID was 45 days.
 
as an IPO, this has not traveled well. Down 33% since hitting the bourse late September.

The HY results in mid November ( " delivering ahead of plan " ) appear not to have convinced early investors to stick around.

Highlights:
● Record revenue of $26.0m, up 41% on H1 FY20 and ahead of prospectus
● Record loan originations of $167m, up 33% on H1 FY20 and ahead of prospectus, with three consecutive months of record loan originations
● Loan portfolio increased to $435m, up 42% on H1 FY20 and ahead of prospectus
● Continued strong credit performance, with reduced 90+ day arrears, net losses and loan deferrals
● NLAT (pro-forma) decreased to $3.4m, down 57% on H1 FY20 and ahead of prospectus
● Automotive warehouse funding limit upsized from $150m to $275m, subject to legal documentation
● Establishment of personal/renewable warehouse facility well progressed
● Plenti app launched and met with strong investor take-up and engagement
● $1bn total lending milestone surpassed

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and full year results out. Some might find them OK but the market has factored the growth in:

  • unsecured personal loan book was flat year on year
  • sharp growth coming from car loans, which surged fourfold to $264 million (and are now the same size as the personal loans).
  • has made $86 million in loans for renewable energy with originations climbing 33 per cent over the year as Plenti partners with the SA and NSW governments to support household investment in renewable energy.
Plenti has shifted from a peer-to-peer lender to one funded by warehouse facilities, although it maintains two investor marketplace funding platforms. It lifted the funding limit on its secured, automotive warehouse to $350 million from $50 million during the financial year and established a second warehouse in December for renewable energy and personal loans with initial capacity of $100 million.

whatever a warehouse is, I have little idea; but the reality seems to be that P2P was an erratic and expensive enterprise
Plenti said its average funding cost has reduced by 190 basis points compared to 2020.
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but then, record high today of $1.46 on a strong trading update for the quarter ended 30 June 2021 (Q1 FY22).

is it cheap money and a rebounding economy, along with generous tax write-offs? In other words, how sustainable is it?


Highlights
• Record quarterly loan originations of $216.4 million, 260% above PCP and 26% above prior quarter
• Record monthly loan originations of $83.4 million in June, representing a $1 billion annual run-rate
• Loan portfolio increased to $757 million, 96% above PCP and 23% above prior quarter
• Prime loan portfolio continued to demonstrate a strong credit performance, with annualised credit losses below 75 basis points and 90+ day arrears remaining low at 35 basis points
• Automotive warehouse facility increased yesterday by $100 million to $450 million
• Automotive warehouse equity requirement materially reduced, releasing funds to support ongoing growth
• Renewable energy and personal loan warehouse facility increased by $100 million to $200 million
• Commercial automotive loan offering successfully launched with selected referral partners, approximately doubling Plenti’s addressable market in automotive finance
 
Up again today but still below the IPO priced at $1.66
 
Plenti Group Limited (ASX: PLT) issued its debut asset-backed securities (ABS) transaction last week, through which it issued $306.3 million of notes to investors, backed by secured automotive loans.

Despite being an inaugural deal, the Plenti Auto ABS 2021-1 issue attracted strong demand from investors across all seven classes (three senior) of notes offered, with the top two classes – accounting for 87.8% of the notes – rated Aaa by global credit ratings agency Moody’s.

The transaction pool was secured by 9,594 automotive loans, made to prime borrowers, with an average contract balance of $31,270. Used cars accounted for 65.4% of the pool, while 34.6% of the loans were new-car financings.

The deal allowed Plenti to lock-in debt funding at low interest-rate costs, with the weighted average margin above the benchmark one-month Bank Bill Swap Rate (BBSW) just 97 basis points (0. 97%). The tranches offered margins above BBSW ranging from 80 basis points for the Aaa-rated top two classes to 620 basis points (6.2%) for the B2-rated Class F notes.

Daniel Foggo, chief executive officer of Plenti, says the deal was “transformative” for the lender, which was looking to diversify its automotive-loan funding from warehouse-based to the “deep and lower-cost” ABS market. “Auto is 50% of our originations, and if you wind the clock forward 24 months, it’s probably going to be higher still. We have one of the Big Four and some mezzanine funders funding a warehouse with $450 million of capacity, but by doing this ABS transaction, we reduced the funding cost on this $300 million-plus portfolio of loans by more than 1.5%. That is quite material funding saving, and actually improves our free cash flow on a monthly basis during the first month, by over $400,000.”
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Plenti Group reported record half-year revenue and loan originations for the six months ending September 30.

The company’s half-year revenue climbed 43 per cent on the prior comparable period, to $37 million. Its half-year loan originations were up 183 per cent to $473 million, while its loan portfolio at half-year end was $915 million, up 110 per cent.

Plenti Group achieved positive monthly cash net profit after tax in October.

“This was an outstanding half for Plenti. We grew strongly and evidenced our operational leverage, which set us up to achieve profitability in the second half,” said Plenti’s CEO, Daniel Foggo.
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“As an Australian fintech lending pioneer, being the first listed fintech to achieve a $1bn loan portfolio is a significant milestone on our mission to build Australia’s best lender. It shows that our technology-led offering is resonating with our partners and customers.”
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and the good news keeps rolling. Enough to lift the SP some 12% today, from the lows since listing of around 90c over the last month or so, to nudge above a buck.

Plenti has lifted its cash profit forecast for the six months ending March 31 to $2.2 million from $1 million.
Plenti’s chief executive, Daniel Foggo, said: “Our proprietary technology platform is delivering operating leverage as we scale while continuing to provide exceptional customer experiences, helping us take market share. “Having moved to a positive cash NPAT position, combined with the attractive corporate debt facility announced last week, Plenti is well-placed to continue its growth into the next financial year.”
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ring the bell? Down to a low of 61c for the 12 months, in June. Now 67c

Quarter highlights
• Loan portfolio increased to $1.44 billion at 30 June 2022, 90% above PCP and 11% above prior quarter
• Strong quarterly loan originations of $289 million, up 34% on PCP
• Loan yields successfully increased across each lending vertical, as Plenti prioritised loan and business profitability over loan origination volumes
• $437 million automotive loan asset-backed securities (ABS) transaction completed in June
• Exceptional credit performance maintained and low 90+ day arrears of 31 basis points at 30 June 2022
• Revenue of $30.5 million and continued positive Cash NPAT in the quarter
 
PLT @ 0.45c - chart showing a turnaround from 52 week low's with a bit of momentum etc. & good news announced this morning! (disclosure bought in yesterday)

Screenshot_20221116-101102.jpg
 
Dona Ferentes said:
and put on bit more by end of the week... had been sub 40c for a couple of months prior .. Volume not high, though

View attachment 149494
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In and out for a quick 16% profit on PLT (as am wary of long term down trend here in play so plenty of overhead supply/resistance imo)

I'd rather re-invest $$ into say an undervalued gold stock like RMS (much better prospects of ongoing upside potential imo)

Good Luck!
 
Plenti video showing the Aussie dreams their loans have brought to life. I am happy to be both a lender and share holder.

 
Up, up, up
Screenshot_20230318-113907_Drive.jpg


Yet down, down, down. ... ATL, since listing.
Screenshot_20230318-113807_My ASX.jpg

Money's too tight to mention.
 
  • NAB will use Plenti’s technology to assess car loans to be funded by NAB.
  • The bank will send customers wanting renewable energy loans to Plenti.
  • NAB may buy 15 per cent of Plenti on-market and via two placements next year.
National Australia Bank will co-brand loans for electric vehicles with Plenti and refer customers wanting finance to buy solar panels and batteries for their homes to the ASX-listed fintech.

Plenti shares doubled to more than 70¢ as the market opened .... now sub 60c
 
Dona Ferentes said:
  • NAB will use Plenti’s technology to assess car loans to be funded by NAB.
  • The bank will send customers wanting renewable energy loans to Plenti.
  • NAB may buy 15 per cent of Plenti on-market and via two placements next year.
National Australia Bank will co-brand loans for electric vehicles with Plenti and refer customers wanting finance to buy solar panels and batteries for their homes to the ASX-listed fintech.

Plenti shares doubled to more than 70¢ as the market opened .... now sub 60c
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Interesting way for NAB to build up their 15% stake.

IMG_9694.jpeg
 

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