Loughborough & Stafford Railway survive

[Ord]

In spite of the doom and gloom, these two smaller BSs don't need to be taken over yet.

They provide us with a snapshot of the sector in advance of the results from societies with a December year end.

[MarkyMarkD]

Whilst it's a shame to be negative about profits, I'm afraid that announcing positive profits for the past year is not necessarily a sign of a promising year ahead, and that it's rash to assume that a profit announcement for 2009 means survival in 2010.

It's amusing to see the Loughborough's expansion strategy is based on opening an agency in an obscure suburb of Leicester - not anywhere near to the centre of town. Very odd.

Their results are rather odd too. Despite the fact that FSCS costs have actually reduced compared to expectations (due to lower interest rates during the course of the year than originally assumed by the FSCS in estimating their levy) - and consequently, most societies should be reported a lower FSCS charge this year than last - the Loughborough manage to have provided 4 times as much in 2008/09. I guess they got their estimate completely wrong in 2007/08 then!

Their costs are still appallingly high at 0.86% too - more than double the best.

Not sure where you are seeing the Staffs Railway BS results, Ord - can you advise please?

[Ord]

[MarkyMarkD]

I know you didn't say that the two would survive 2010, but saying that they don't need to be taken over "yet" is a bit uninformative - nobody is taken over until they announce that they are taken over, and that could be one day after announcing historical profits.

I also know that many of the "smaller" societies are above 1%. But Loughborough aren't particularly small and there is no justification for any society having costs at that level IMHO.

Nice railway analogies - shame Staffs Railway don't bother publishing their results on their own website!

[HB]

For those that are interested, Newbury results through my letterbox today:

Assets down from £656m to £630m
Shares up from £500m to £541m
Mortgages down from £506m to £498m

Quote the chairman:
"we have firmly concluded that the best interests of Newbury members will be served by only modest change"

like what?

_______________
Sterling Forever.

[blobby8]

[HB]

Nice to see bonuses still being dished out while the society shrinks lmao

_______________
Sterling Forever.

[Ord]

Adrian Coles was covering the backs of the Newbury board (and no doubt others) when he asserted that shrinking assets should not be seen as a bad thing.

Whether it should be a bonus thing is another matter but directors may be drinking in the last chance saloon and so care even less what members think than usual - if that's possible .

The BSA Director General in January's Money£acts:

Standing still to move forward [It sounds like Leninist propaganda]

"It is a perfectly viable strategy for many societies to stand still for a year or two. Members should not see a policy of restraint as a failure - rather a prime example of prudence in these turbulent times."

[Sandman]

What did he say about 100 years of members reserves being wiped out?

[Ord]

He was surprisingly silent on that matter

[MarkyMarkD]

But what were the profit figures? Asset numbers are all very interesting, but I can't interpret "What did he say about 100 years of members reserves being wiped out?" without any clue about profits!

[planteria]

"we shall be sitting on our fat backsides doing SFA for the forseeable" is how i read it too blobby

in fairness though, i can certainly accept that at times it makes good sense to keep running a business as it is...consolidating rather than pushing forwards. lots of people i trade with have done that in the past couple of years, and are wise to have done / to do so. and this could apply to BSs too.