Gli Finance Share Discussion Threads

[gbill11] 17/11/2016 11:08

So if the NAV is still 36.82p then at 20p ask price the discount is 45% and if GaryCook is broadly right a yield of 6.25% next year. I must say I'm tempted even if the NAV has gone down since september. Any reason it should have done?

[james188] 17/11/2016 09:28

I also suspect that the dividend payable next year will be around half the current level. I think that the share price is at the current depressed level due to a number of factors. First, whilst I happen to think that the current management team that has been in charge (and supplemented)this year is doing a good job, it will inevitably take time for confidence to be regained, given the various issues that have come to light compared to the picture that the company was presenting as recently as October 2015 - a sore point for me and no doubt others. Secondly, the share trades very thinly. I suspect that a significant chunk of the PI base has departed - and many of them were in it for the high yield, so dividend reductions have not been well received. In contrast,as I have previously noted, Somerston have continued to stake build. Finally, although efforts are being made to simplify the company, it is still quite complex. Getting to grips with the current state of affairs is not easy and I am sure that that factor alone has put some investors off.

This is very much a work in progress, but there are signs that better times lie ahead.

[garycook] 17/11/2016 08:37

Gbill11, The Dividend will vary on profit,s,has announced in the last results.I am estimating around half the current full year of last years 2.5p.So around 1.25p giving around 6.5%,but I hope I am wrong,and GLIF profit,s improve.Also I believe next year,s dividend is being paid Bi-annually and not Quarterly.DYOR

[gbill11] 17/11/2016 08:08

So why has GLIF dropped below 20p? There was a placing at 31p and directors have been buying in the mid to high 20s? SMEF doing fine as well. Today's statement looks OK, nothing there to explain why the shares have dropped so low.

Does anyone have any expectations as to the level of next years dividend. If the 2.5p is maintained that would give a yield of over 12.5%

[cheshire2] 17/11/2016 07:50

RNS Number : 3948P

GLI Finance Limited

17 November 2016

GLI Finance Limited

(the "Company" or "GLI Finance")

Publication of Net Asset Value

17(th) November 2016

The Company announces its unaudited NAV per share as at 30 September 2016 was 36.82p, a decrease of 0.68% from the NAV per share of 37.07p as at 30 June 2016.

The reduction in the NAV per share of 0.25p is comprised of:


The dilutive impact of (0.46) pence
the issue of approximately
23 million shares on 9
August 2016 at a price
of 31 pence per share,
in connection with a placing
------------------------------ -------------
Gains attributed to the 0.51 pence
increase in the mid-price
of the SME Loan Fund plc
from 89.75 pence as at
30 June 2016 to 96.0 pence
per share at 30 September
2016
------------------------------ -------------
Gains on currency exposure 0.35 pence
------------------------------ -------------
Net loss for the quarter (0.65) pence
after declaration of a
Dividend of 0.625 pence
per share
------------------------------ -------------
Net movement in NAV per (0.25) pence
share
------------------------------ -------------


The Company also provides the following update on its three Pillars:

Pillar One - The Sancus Group continues to trade in line with expectations formed at the time of the acquisition of Sancus (Gibraltar) Limited and the minority interest in GLIF BMS Holdings Limited and remains a high return on capital businesses.

Pillar Two - No changes have been made to the fair value holdings in the FinTech Platforms in the quarter, however funding and loan pipelines continue to show growth.

Pillar Three - Amberton Asset Management's AUM has increased to approximately GBP71m in the quarter as it has been appointed to manage Sancus Loan Notes Limited, a GBP17.5m SPV, as announced on 8 November 2016.

For further information, please contact:

GLI Finance Limited

Andy Whelan

[the monkster] 10/11/2016 17:33

oh dear. sub 20 now

[cerrito] 08/11/2016 21:09

Reading the press comments on the Lending Club results, the point was made about the costs the platforms have to incur on chasing up defaulted loans; no idea what legally Sancus/BMS et al have to do the chase up bad loans but I guess for a market reputation basis they need to spend money and time which is why good that the Indirect Credit Risk for GLIF is good.

[future financier] 08/11/2016 09:31

I sense a clearly defined purpose in GLIF now that was sadly lacking in the days of Geoff Miller when cash was just sprayed around seemingly at random. I shall watch this carefully over the next few weeks and may well double up on my modest investment the next time I see something vaguely positive going on.

[cheshire2] 08/11/2016 08:44

RNS Number : 5273O

GLI Finance Limited

08 November 2016

08 November 2016

GLI Finance Limited

("GLI" or the "Company")

Issue of new securitised loan note

GLI announces that Sancus BMS Group Limited ("Sancus"), a wholly owned subsidiary of GLI, has subscribed for GBP7.5 million of redeemable preference shares in a newly established special purpose vehicle (the "SPV"), to be satisfied by the transfer of existing loans and cash to the SPV.

The SPV has simultaneously raised a further GBP10 million through the issue of senior notes to external investors, which will be used to make further loans. Over the 2 year life of the SPV, Sancus's return is expected to be materially comparable to that which it currently earns on its lending business.

The loan portfolio in the SPV will be managed by Amberton Asset Management.

Commenting on the issuance, Andy Whelan, the Chief Executive of the Company said:

The interest in this note reflects the growth we are seeing within Sancus and is the first of an intended series of SPVs which will expand the loan funding available to Sancus.

The Sancus Group continues to trade in line with expectations formed at the time of the acquisition of Sancus (Gibraltar) Limited and the minority interest in GLIF BMS Holdings Limited and are high return on capital businesses.

For further information, please contact:

GLI Finance Limited

Andy Whelan

[cerrito] 07/11/2016 23:32

I have finally organized myself to have a look at the interims.
First had a look at GLIZ whose effective yield is approx. 8.5%; difficult to get a good comparator and to me seems about right and as such do not presently consider will buy.
Big picture is that I thought the report of the Chairman, CEO, CFO and COO were very good and we have a clarity that we have never had before. It seems that they are on the right track and I need to consult with my pillow as to whether to buy some more.
Things that caught my attention
• I see that as of Sept 23 16 Somerston had 23.5% shareholding; this suggests to me that Panmure got away nothing or very little in their accelerated book build on Aug 9-unsurprising given that the shares were issued at a healthy premium. Perhaps this failure-if that is what it was –is the reason why Panmure were replaced by Liberum.
• I see that as at Aug 17 other significant shareholders were Sancus Gibralter with 14%; Artemis and Axa FM both with 7%+ and Hargreaves Landsdown Nominess( I assume retail) with 4.38%. Good that Somerston increased their holdings in August at a premium but apprehensive as their holding approaches the 29.9% mark.
• I do wonder at the position of the Chairman who did allow Miller to get GLIF in a position which was according to CEO fragmented in its structure, complex and lacked clarity of purpose. There is also the Dec 21 2015 RNS in which Miller’s resignation was noted and new directions set which I would have expected to have been signed off by the Chairman. Following the September 2016 board resignations we have 4 directors The Chairman, the CEO, CFO and one NED. I cannot put my finger on it but not comfortable with the corporate governance.
• Good to see HO cost saving of £1m on track despite (in my view wise) recruitment of COO and CTO.
• How previous management got into a position where they had a £4.5m write down of Verus360 which I had never heard of before and was not listed in the AR as at 3.12.14 heaven only knows.
• I note on the bottom of page 10 that after all write offs etcet profits in H1 16 were £5.2m-ie on an annualized basis 12.5 % of book net worth at 6.16 of £82m on a company basis. Good but note on page 23 we are told in the v good Risk section that a weakening of £ by 15% produces a gain of £4.8m-the figures they produce show a weakening of 9% ie a FX Gain of £2.9m- funny that no mention of this in the CFO report.
• Good that we get on page 24 info on credit quality; now that they have removed most direct loans from their balance sheet the focus moves to what they deem Indirect Credit Risk-ie that of loans raised through their platforms. Pleasing that only 0.3% outside of original credit terms.
• Good to see that they have no interest rate risk.
• In terms of immediate news flow we have the Nov 17 announcement of Q3 NAV and I will be interested to see if they make further write downs of the non prioritized subs. Longer term we have news of refinancing of the syndicated loan due in March.
• The CEO stated quote I am working on a solution to improve the Group’s debt to equity profile yet further unquote which to me rather begged the question if he wants to increase or decrease leverage. On a consolidated basis debt:equity at 6.16 was 63% and finance costs were £2m compared to basically breakeven excluding write offs on an IFRS basis. To me some reduction in leverage in order and hopefully a lower cost of debt.

[cerrito] 07/11/2016 16:05

well understand what you are saying Future Financier...I am preparing a post on the interims and to their credit they have done a good job in simplifying the business and explaining it better

[future financier] 07/11/2016 08:41

Thanks for sharing that Cerrito - a useful start to unravelling the true worth of GLIF - my holding is very small and I am just letting it run more in hope than expectation. ~But don't have the time/energy to do more. I understood "old" GLIF (T2O wasn't it originally?) - but a score of investment in platforms is impossible to understand without looking at the underlying dynamics of each of those platforms - and I don't have time for that!

[cerrito] 06/11/2016 15:39

As a GLIF holder, I chanced upon the prelims for the year to 30.6.16 for SMEF-the new name for GLAF. I have no SMEF
I had a look at them for the read across to GLIF.
From my reading I would agree with SMEF that the IM Amberton has quote performed credibly unquote.
Also remember that GLIF holds 47.99% of the shares of SMEF-at 30.6.16 SMEF’s book net worth was £53.4m-ie GLIF’s share was £25.4m-ie roughly 25% of GLIF’s net assets.

Management Fees paid to Amberton were for the year £295K and the second half of FY 05/06 £180k-half of which go to GLIF. SMEF’s total assets were £53m both at 12.15 and 6.16. As GlIF says de minimus. Somehow I do not see SMEF doing a big new issue which will increase its assets and hence the fees GLIF ultimately get.
The other was the loan quality of SMEF-important as they get many of their loans from GLIF platforms. On the basis that one has confidence in SMEF’s Directors(and this is my start point) impaired loans were £0.4m-£285k of which were from Funding Knight; loans which were past due but not impaired were £181k. At face value given that SMEF’s total loans were £46m, I think this figure on the surface is very good although I recognize that of course these loans were still new as at end June. I see in the SMEF Statement as at September they say that the 12 month impairment rate was 0.98%.
Incidentally in the liquidity risk section we are given the maturity profile-very broadly 25% approx. in under 6 months,6/18months,18/36 months and 36 months+

My next task is to get myself up to speed with GLIF to see if a buy at these levels.

[spectoacc] 03/11/2016 09:18

@This-is-me - do you get endless spam mail, out of interest? Whenever I've had my name on a shareholder register it seems to invite junk mail & phishing phonecalls, presumably due to it being public. Have never been tempted by Crest for that reason (& cost, & because unlike @GaryCook I understand what shorting is).

Back on topic - struggling to see a price I'd buy GLIF at.

[holts] 03/11/2016 07:56

So we have gone from a stock receiving income from instruments to a stock paying up on its own Bonds whilst grubbing around trying to make money out of lending , how long before there is debt for equity swap .

[this_is_me] 02/11/2016 07:31

GARYCOOK If you have your shares in CREST that can't happen. I use Charles Stanley Direct and have a personal membership of CREST through them so my name appears on the share register and I get annual reports and dividends direct from the registers. Unfortunately that doesn't work for shares held in an ISA.

[garycook] 28/10/2016 07:21

We will all have to wait and see !!!

[spectoacc] 28/10/2016 06:45

Except there's no longer any clarity what the dividends will be.

[garycook] 28/10/2016 01:09

MD,There are 2 Option,s 1/ Hold collect the dividends until recovery or 2/Sell at a big loss.I am taking option 1.

[mister md] 27/10/2016 15:52

How big are the risks associated with this one now - the shareprice is really struggling ?

[neilyb675] 27/10/2016 10:49

41 active holdings'

[neilyb675] 27/10/2016 10:47

Gary.....i have upwards of 30 holdings', don't see the point of same message across them all. Pick a very popular share and post it there. Job done.

[garycook] 27/10/2016 10:10

Nelly,I own 25 Shares why not.I hate Shorter,s

[neilyb675] 27/10/2016 09:06

Gary.....its tedious reading you post same message across so many bbs. Get a life ffs

[garycook] 27/10/2016 08:16

To all GLIF shareholders. I have today put a Limit sell order on my holding in GLIF of 50p,to stop Shorter,s from loaning the shares from my broker,which they can do for a fee,without me or you knowing about.I suggest you do the same.