GLI Finance Limited – Unaudited Interim Results for the six month period ended 30 June 2016
Highlights.
A full business strategic review has been undertaken incorporating examination of cost base, capital structure, detailed assessment of equity and loan investments and valuations.
Losses for the period were £6.9m (June 2015 profit of £5.3m), impacted by £13m write downs in investments in underperforming or liquidated platforms following the strategic review.
Group has been organised with three “pillars” to improve operational focus and assist reporting our strategy.
Pillar One
Sancus BMS Group on a like for like basis, increased consolidated revenues from £2.7 million in H1 2015 to £4.0 million in H1 2016. The period was notable for the consolidation of the Sancus group and its amalgamation with BMS and Platform Black to establish our speciality lending business. We anticipate that the combined business will provide strong cash flows for the group;
Pillar Two
Valuations in our prioritised platforms, The Credit Junction, LiftForward, Funding Options and Finexkap increased by £5.5m in aggregate. Investments in underperforming or liquidated platforms were written down by £13m. We have been very prudent in reorganising this portfolio and we fully expect to see value of this portfolio build materially in future periods;
Pillar Three
Amberton Asset Management remains de minimus and we expect to make progress on this pillar in the next 12-18 months;
Group
As a consequence of the considerable restructuring in the period together with writedowns in Pillar Two, the Net Loss for the period on the GLI Measurement Basis was £10.3m (H1 2015: Net Profit of £0.2m).
Through making early write downs and recognising losses in underperforming assets, together with raising capital and reorganising Sancus BMS Group, the Companies’ balance sheet is significantly strengthened. Nonetheless, during the period the Company Net Asset Value “NAV” per share decreased from 42.73p to 37.07p;
Company debt to gross asset ratio is 30% (31 December 2015 33%)
Company Net Assets have increased in the period from £98.2m to £105.6m.
The Company’s weighted average cost of debt decreased from 8.6% (year to 31 December 2015) to 6.8% (period to 30 June 2016).
Business Money editor, Robert Lefroy, commented: “With the rash of FinTech sites available to both investor and borrower some rationalisation was inevitable and GLI Group has grasped the nettle. We may expect others to follow.”
