Gli Finance Share Discussion Threads

[bluemango] 09/8/2016 09:25

Sensible to move towards a policy of dividends covered by earnings, and encouraging to see a Placing at a good premium to share price. Andy Whelan still making the right (if sometimes tough) decisions to set the company on a good growth trajectory.

[davebowler] 09/8/2016 09:25

Liberum;
£7m placing

Event
GLI Finance Ltd. (GLIF) has announced its intention to raise gross proceeds of £7.1m through the placing of 23,020,560 new ordinary shares. The issue is fully underwritten by Golf Investment Ltd, who will subscribe for approximately 75% of the placing (17.7m placing shares). The remaining 25% or 5.4m shares are to be placed with relevant persons as identified by the bookrunner and to the extent that this portion of the placing shares is not fully taken up, Golf will also subscribe for the balance. The placing price of 31p per share represents a 14% premium to the 8 August closing price and a 15% discount to the last published NAV (on a ex-income basis). It is expected that the new shares will be admitted to trading on AIM on 15 August 2016.

In relation to the dividend policy, GLIF has confirmed that it will pay a 2.5p dividend for 2016. From 2017 the company will only pay a dividend when fully covered by the financial year's cash earnings. The company intends that it will continue to pay dividends to holders form 2017, but this change is to enable the company to take advantage investment opportunities and to fund growth of investee platforms, enhancing shareholder value in the longer term rather than focusing on short term income.

The company currently trades at a 28.4% discount to NAV.

[cerrito] 09/8/2016 09:17

My main issue with today's news is that the use of proceeds statement is as clear as mud.
Yes at a good premium to the current share price but there is the issue of warrants or if that does not go ahead the £360k underwriting fee.
The new dividend policy is logical from a corporate finance perspective and reminds us that we are a different company than from 2/3 years ago and this need to be recognised...and follows their decision to focus on EPS rather than NAV.

[squintyflinty] 09/8/2016 09:13

We are changing direction here.I'm OUT!

[holts] 09/8/2016 09:07

its slightly above the current share price , which has halved .

[this_is_me] 09/8/2016 08:03

The placing is above the current share price so for once private investors can't complain.

[solarno lopez] 09/8/2016 07:29

of course it is that is how the city works

[cerrito] 02/8/2016 09:12

This strengthening of senior management seems v sensible and needed.

[ten bag man] 29/7/2016 09:03

Looks like a growth share

[specuvestor] 29/7/2016 08:57

Turnover of £400,000 a year is pretty small beer. I thought Platform Black was bigger than that. A branch of McDonald's turns over more! (and doesn't lose £1.6 million). Lets hope that their other platforms are bigger and more profitable. Other than the very biggest platforms such as RateSetter & Funding Circle these small platforms seem to be money down the toilet. There is over 100 of them out there. There is probably only room for a half a dozen or so in the UK.
I am hoping that the French platform Finxcap might be a lot more successful. Does anybody know what their turnover & profits/losses are? or which of the GLI platforms actually make money?

[joe say] 29/7/2016 08:07

boadicea - LOL

although a £1.60 loss would clearly be preferable

[boadicea] 29/7/2016 08:02

Do I assume there is a missing 'm' after the 1.6 in the final line above?

[skinny] 29/7/2016 07:56

The Board announces that, on 29 July 2016, Sancus BMS Group Limited ("Sancus BMS", a wholly owned subsidiary of the Company) acquired a further 24,888 ordinary shares, representing 10.72% of the issued ordinary share capital of Platform Black Limited ("Platform Black"), taking its holding to 94.65% at a £3.5m valuation. The ordinary shares were acquired from certain original minority ordinary shareholders in Platform Black.

Immediately following this transaction, Sancus BMS entered into an agreement with a consortium of high net worth private investors ("Minority Investor Group") whereby the Minority Investor Group will:

· Buy 23,209 ordinary shares representing 10% of Platform Black's issued ordinary capital for consideration of £350,000 settled in cash, taking the Sancus BMS holding back to 84.65%.

· Buy 200,000 Platform Black Preference shares (out of 4.1 million in issue) for consideration of £200,000 settled in cash.

· Provide lending capacity to Platform Black of up to £50m to expand the funder base operating through the platform.

· Have the option, on or before 29 July 2021, to acquire for cash a further 20% of Platform Black's ordinary share capital from Sancus BMS at a £5m valuation.

· Have the right to appoint three Non-Executive Directors to the board of Platform Black.

Following the above transactions, Sancus BMS remains interested in 84.65% of Platform Black's issued ordinary share capital. Platform Black will have an expanded funder base and be better positioned to maximise its potential from being rebranded to Sancus Finance with effect from 1 January 2017.

Platform Black recorded turnover and a post-tax loss of £0.4m and £1.6 respectively in the year ended 30 June 2015. Platform Black's net liabilities at 30 June 2015 were £0.5m. Platform Black became a subsidiary of Sancus BMS on 30 June 2016.

[joe say] 25/7/2016 08:15

Agreed - £4.5m is a material sum.

As Project Clarity is clearly at the discovery phase I too look forward to the full conclusions

[cheshire2] 23/7/2016 11:23

exactly were not talking £500 out the petty cash tin.

Unrelated parties are companies or other entities which are independent of each other, so that they are normally assumed to be dealing with each other at fair market prices

[garycook] 23/7/2016 05:14

I believe GLIF Shareholders should know where that money as gone,and to who !!!

[cheshire2] 22/7/2016 13:28

"the Board has decided to write down a GBP4.5m loan that had been made to an unrelated party." SO MUCH FOR CLARITY !!!

[cheshire2] 22/7/2016 13:24

RNS Number : 9280E

GLI Finance Limited

22 July 2016

22 July 2016

GLI Finance Limited

(the "Company" or "GLI Finance")

Publication of Net Asset Value

The Company announces its unaudited net asset value ("NAV") per share as at 30 June 2016 was 37.07p, representing a 12.6% reduction from the NAV per share of 42.42p as at 31 March 2016.

The movement in the NAV per share comprises an 8.2% increase in NAV and a 23.8% increase in shares in issue following completion of Project Clarity. The increase in NAV per share arising from Project Clarity was, as expected, just under 2p per share, consistent with the Company's announcement on 16 May 2016.

As also previously stated, the Board is currently in the process of a strategic review. As part of this, the Board continues to review the valuations of the platform portfolio and has written down certain of the Company's investments by a total of circa GBP11m in this quarter. GBP3.8m of this was in relation to the write down of Funding Knight Holdings Limited which entered administration and was subsequently purchased by the Company, as announced on 28 June 2016. Furthermore, the Board has decided to write down a GBP4.5m loan that had been made to an unrelated party. The remaining adjustments relate to certain other platforms, where the Board has felt it prudent to write down carrying values. The Board is increasingly confident in the valuations but note that, by the nature of the underlying investments, values can change in a relatively short space of time.

The Board will provide a further update to shareholders when the Interim Results are released on 19 September 2016.

[cerrito] 20/7/2016 15:10

A very clear dissection of GLI from Edison
A reminder of the need for GLI holders to monitor GLAF as exhibit 3 reminds us that dividend income from GLAF at £1.5m forecast for this year is greater than forecast pre tax profit
Given the way that GLI going makes sense to focus on earnings rather than NAV in the future.

[davebowler] 20/7/2016 14:43

Once this recovers GLIZ will look like very good value.

[gli finance] 20/7/2016 13:10

Thank you, bluemango, I think ADVFN deleted the link I posted - despite my amending it with an X...

[bluemango] 20/7/2016 12:42

"At 27p, the share price reflects the turmoil of the past year ..... Whelan believes he and the team have created the building blocks for progress, which should help propel that valuation higher."

Note that the Edison report estimates NAV at 38.8p. Based on this, the shares are currently trading at a discount to NAV of 43.7%.