IFS Capital

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#1
I am looking at this company but I am not really sure how to assess the performance especially my concern on its negative operating cashflow. Any forumers to share their views on this?
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#1
I am looking at this company but I am not really sure how to assess the performance especially my concern on its negative operating cashflow. Any forumers to share their views on this?
Reply
#2
hi mrEngineer, the main reason for the negative cash flow is because IFS started out as a factoring finance firm. People pass them their receivables and they loan short term the money to the people. They collect the receivables and then if i am correct charge a fee for it.

because of that the cash flow statments usually is negative since after working capital if business is good, it usually means an increase in receivables.
Dividend Investing and More @ InvestmentMoats.com
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#2
hi mrEngineer, the main reason for the negative cash flow is because IFS started out as a factoring finance firm. People pass them their receivables and they loan short term the money to the people. They collect the receivables and then if i am correct charge a fee for it.

because of that the cash flow statments usually is negative since after working capital if business is good, it usually means an increase in receivables.
Dividend Investing and More @ InvestmentMoats.com
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#3
Thanks Drizzt for your reply. I have not investigated further but noticed in analyst reports that operating cash flow was positive in 2010. But you may have rightly pointed that further analysis on IFS Capital loan receivables should determine its performance.
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#3
Thanks Drizzt for your reply. I have not investigated further but noticed in analyst reports that operating cash flow was positive in 2010. But you may have rightly pointed that further analysis on IFS Capital loan receivables should determine its performance.
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#4
hi mrEngineer, its been a long time since i taken a look at it so i might be wrong as well.
Dividend Investing and More @ InvestmentMoats.com
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#4
hi mrEngineer, its been a long time since i taken a look at it so i might be wrong as well.
Dividend Investing and More @ InvestmentMoats.com
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#5
Seems good results announced from Thai subsi
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#5
Seems good results announced from Thai subsi
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#6
Similarly good financial results reported for the Group with increase in dividend. Things may look more rosy for next year with the growth of construction projects in Singapore and SME financing in the SEA region
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#6
Similarly good financial results reported for the Group with increase in dividend. Things may look more rosy for next year with the growth of construction projects in Singapore and SME financing in the SEA region
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#7
Profit Guidance due to another set of Impairment Losses... I though the CEO mentioned in the Edge that the are moving the Credit Review Function Centrally to SG... Are these legacy loans? If not, their Credit Review function performs poorly...
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#7
Profit Guidance due to another set of Impairment Losses... I though the CEO mentioned in the Edge that the are moving the Credit Review Function Centrally to SG... Are these legacy loans? If not, their Credit Review function performs poorly...
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#8
(31-01-2015, 08:27 AM)banker Wrote: Profit Guidance due to another set of Impairment Losses... I though the CEO mentioned in the Edge that the are moving the Credit Review Function Centrally to SG... Are these legacy loans? If not, their Credit Review function performs poorly...

But it said lower losses. Does it mean less loss than what was in 2013?
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#8
(31-01-2015, 08:27 AM)banker Wrote: Profit Guidance due to another set of Impairment Losses... I though the CEO mentioned in the Edge that the are moving the Credit Review Function Centrally to SG... Are these legacy loans? If not, their Credit Review function performs poorly...

But it said lower losses. Does it mean less loss than what was in 2013?
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#9
(31-01-2015, 02:58 PM)guru Wrote:
(31-01-2015, 08:27 AM)banker Wrote: Profit Guidance due to another set of Impairment Losses... I though the CEO mentioned in the Edge that the are moving the Credit Review Function Centrally to SG... Are these legacy loans? If not, their Credit Review function performs poorly...

But it said lower losses. Does it mean less loss than what was in 2013?

Impairment loss for FY 2014 is expected to be less than that of FY 2013 but more than 6++mil of 9M 2014
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#9
(31-01-2015, 02:58 PM)guru Wrote:
(31-01-2015, 08:27 AM)banker Wrote: Profit Guidance due to another set of Impairment Losses... I though the CEO mentioned in the Edge that the are moving the Credit Review Function Centrally to SG... Are these legacy loans? If not, their Credit Review function performs poorly...

But it said lower losses. Does it mean less loss than what was in 2013?

Impairment loss for FY 2014 is expected to be less than that of FY 2013 but more than 6++mil of 9M 2014
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#10
"The Board of Directors of IFS Capital Limited (the “Company”) wishes to announce that following
a preliminary review of the draft unaudited consolidated financial results of the Company and its
subsidiaries (the “Group”) for the fourth quarter (“Q4 2014”) and full year ended 31 December
2014 (“FY 2014”) and the current information available, the Group is expected to report a lower
net loss for the Q4 2014 and FY 2014 compared to the corresponding periods of the previous year
.

The expected net loss is mainly due to additional impairment on loan losses provided by the
Group as previously announced in the Unaudited Financial Statements for the Third Quarter and
Nine Months ended 30 September 2014
."

The following is my interpretation of the above profit guidance which may be wrong Smile Smile.

Net loss of Q4FY2013 and FY2014 was S$4.2mil and S$3.7mil respectively.

http://infopub.sgx.com/Apps?A=COW_CorpAn...esults.pdf

9MFY2014, the group report a net profit of S$1.77 mil so I assume the net loss will be greater than S$1.77 mil and less then S$4.2 mil

http://infopub.sgx.com/Apps?A=COW_CorpAn...202014.pdf

As stated in Q3 quarterly report, note h in page 5,

"(h) Higher allowances for loan losses for 3Q 2014 were mainly due to additional impairments
required for Malaysia operations
. Lower allowances for loan losses for 9M 2014 were mainly
due to lower individual impairments required as compared with 2013 which included the full
provision of $4.1 million set aside against the business failure of a client."

The additional impairments is probably due to Malaysia operations.

Hence, the loss attributable to the owners of the company is probably larger similar to last year.
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#10
"The Board of Directors of IFS Capital Limited (the “Company”) wishes to announce that following
a preliminary review of the draft unaudited consolidated financial results of the Company and its
subsidiaries (the “Group”) for the fourth quarter (“Q4 2014”) and full year ended 31 December
2014 (“FY 2014”) and the current information available, the Group is expected to report a lower
net loss for the Q4 2014 and FY 2014 compared to the corresponding periods of the previous year
.

The expected net loss is mainly due to additional impairment on loan losses provided by the
Group as previously announced in the Unaudited Financial Statements for the Third Quarter and
Nine Months ended 30 September 2014
."

The following is my interpretation of the above profit guidance which may be wrong Smile Smile.

Net loss of Q4FY2013 and FY2014 was S$4.2mil and S$3.7mil respectively.

http://infopub.sgx.com/Apps?A=COW_CorpAn...esults.pdf

9MFY2014, the group report a net profit of S$1.77 mil so I assume the net loss will be greater than S$1.77 mil and less then S$4.2 mil

http://infopub.sgx.com/Apps?A=COW_CorpAn...202014.pdf

As stated in Q3 quarterly report, note h in page 5,

"(h) Higher allowances for loan losses for 3Q 2014 were mainly due to additional impairments
required for Malaysia operations
. Lower allowances for loan losses for 9M 2014 were mainly
due to lower individual impairments required as compared with 2013 which included the full
provision of $4.1 million set aside against the business failure of a client."

The additional impairments is probably due to Malaysia operations.

Hence, the loss attributable to the owners of the company is probably larger similar to last year.
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