TIDMGLIF TIDMGLAF
RNS Number : 9125F
GLI Finance Limited
17 November 2015
17 Nov 2015
GLI Finance Limited
Trading and financial update
The Board is pleased to provide the following trading and
financial update having completed the repositioning of its
activities, which are now focussed on four complementary areas:
-- Alternative lending Platforms (whether wholly owned or as a
significant shareholder) in several countries
-- Direct lending, mainly through the Platforms
-- Fund management with the first fund (GLI Alternative Finance
PLC "GLI Alt Fi") listed in September 2015
-- Investment in GLI's managed fund
GLI was an early mover in the Peer-to-Peer (P2P) lending sector
and has assembled a portfolio of Platforms that provide lending
diversity by duration, geography and asset type and use highly
differentiated origination strategies. The rapid growth in the
sector (Liberum AltFi index for business P2P lenders for the 12
months to 11 Nov 2015 is up 128.11% in UK, and 153.45% in
Continental Europe - YTD GBP1.12bn) is an international phenomenon
and GLI, with Platforms in the UK, Continental Europe, USA and
Africa, continues to assess opportunities throughout the world.
Direct lending activity
GLI's direct lending activity is complementary to its investment
in the Platforms enhancing their ability to attract borrowers and
providing loan origination channels for GLI which generated
interest at an average rate of around 10% on its portfolio during
the nine months ended 30 September 2015. Loan losses/provisions
were approximately 0.7% of the closing loan book during the nine
months ended September 2015.
Managed funds
GLI's wholly owned subsidiary GLI Asset Management Ltd is an
authorised fund manager and intends to launch a range of investment
funds with differing strategies. GLI's strategic aim of increasing
the size and number of its managed funds changes its risk profile
as it generates fee income from the managed portfolios with
decreasing direct exposure to loan losses.
Its first fund, "GLI Alt Fi" is a London listed investment trust
was launched in September 2015. GLI Alt Fi has acquired GBP40.2m
direct loans from GLI resulting in GLI holding 76% of GLI Alt Fi's
issued share capital. The target dividend yield on GLI Alt Fi's
shares is 8% per annum.
It is intended that GLI Alt Fi, which has already raised
GBP12.5m from third party investors, will continue to issue new
shares enabling it to expand and diversify its portfolio, reducing
GLI's percentage shareholding. GLI receives management fee income
of 0.75% per annum of GLI Alt Fi's net asset value (or of market
capitalisation, if lower) of up to GBP100m, and 0.5% of any
excess.
Financial update
The Company intends to publish its Net Asset Value formally,
incorporating the results of a review of the value of its
investments in Platforms, by mid December. Reflecting, in
particular the launch of GLI Alt Fi, the segmental analysis of
GLI's statement of financial position has changed significantly
since 30 June 2015.
Unaudited management accounts as at 30 September 2015 indicate
as follows:
30 June
30 Sept 2015 2015
GBP'million GBP'million
Loan portfolio GLI family
of Platforms 48.88 76.05
Loan Portfolio through third
parties 0.55 7.25
Platforms (loans and investments)* 62.84 61.25
Investment in GLI Alt Fi** 41.18 0
Cash 0.25 2.55
Debtors 2.89 4.40
Assets 156.59 151.50
Creditors and accruals (0.98) (0.95)
Borrowings (22.99) (16.50)
ZDP Shares (21.84) (21.52)
Net assets 110.78 112.53
* The investments in Platforms (some of which are subsidiaries
and others are associated companies) are shown at cost less
impairments unless a transaction or third party valuation provides
evidence of a higher value. However, as at the date of this
announcement, no fair value adjustments have been made since 30
June 2015 (the date of GLI's interim financial statements).
** The investment in "GLI Alt Fi", an investment trust managed
by GLI Asset Management Limited is shown at GLI's share of its net
assets. The GLI Alt Fi shares held by GLI as at 30 September 2015
represented 76% of its issued share capital and had a mid-market
value of GBP41.2m. In statutory accounts, GLI Alt Fi would be
consolidated as a subsidiary of GLI, rather than the investment in
GLI Alt Fi being shown as a separate asset.
The table below shows the lending type of GLI's loan portfolio
through its own family of platforms and third parties as at 30
September 2015.
Direct Loans
GBP'million
Invoice Finance 3.57
Trade Finance 0.23
Bonds 0.10
Term Lending 44.98
Total through GLI Platforms 48.88
Loans through third parties 0.55
Total 49.43
A similar analysis of GLI Alternative Finance plc's statement of
financial position and portfolio of loans through the GLI family of
Platforms as at 30 September 2015 is set out below:
GBP'million
Loan portfolio GLI family of
Platforms 32.64
Loan Portfolio through third
parties 5.70
Platforms (loans and investments) 0.53
Cash 13.54
Debtors 0.56
Other assets 0.03
Creditors and accruals (0.52)
--------------
Net assets 52.48
--------------
Loan portfolio GLI Family of Platforms
GBP'million
Invoice Finance 0.42
Bonds 0.50
Term Lending 31.72
Total: GLI Platforms 32.64
------------
GLI is currently undertaking some test marketing, which may or
may not lead to the issue of further securities to refinance
certain existing borrowings as well as providing additional working
and growth capital.
For further information, please contact:
GLI Finance Limited
Geoffrey Miller
+1 203 916 0003
+44 7408 830719
Panmure Gordon (Nominated Adviser and Corporate Broker)
Dominic Morley / Tom Salvesen
+44 (0)20 7886 2500
Peter Steel
+44 (0)113 357 1150
Camarco (PR Advisor)
Ed Gascoigne-Pees
+44 (0)203 757 4984
+44 (0)788 400 1949
Hazel Stevenson
+44 (0)203 757 4989
+44 (0)798 600 9720
About GLI Finance Limited
GLI Finance (www.glifinance.com) is a specialist provider of
finance to small and medium sized enterprises. Its ordinary shares
are quoted on AIM and its issued zero dividend preference shares
are listed and traded on the main market of the London Stock
Exchange (ticker GLIF). GLI Finance both invests in loans to SMEs
and originates finance for SMEs through a variety of finance
platforms.
The platforms in which GLI Finance is invested vary by
geography, industry, size of lending and by type of lending. They
include Global Trade Finance, UK and US SME Lending, Offshore
Lending, UK invoice discounting, European invoice discounting,
Global multi-asset crowd funding and UK property-backed
lending.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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