BeaglePup
10 Aug 2016
Re: 9% Yield Simon Thompson has today recommended cutting losses and running on GLIF, arguing on the continuing slide in sp and nav. I think he is inferring that the recent purchaser of the placing and warrants associated with it will possibly buy out the company at the current or a lower price.
Damp Seaweed
10 Aug 2016
Re: 9% Yield Quite why anyone would pay a premium is a mystery to me. But so often in the world of finance, the waters can be murky.
the julio
10 Aug 2016
Re: 9% Yield Indeed but it is good to see that Somerton are paying 31p for their new shares. This must be positive unless I have missed something.
Damp Seaweed
09 Aug 2016
Re: 9% Yield Looks like the super duper divi has gone.
Damp Seaweed
22 Jul 2016
Re: 9% Yield I believe it is from the latest Edison report.[link] not offering a 9% yield (funded by borrowing) without good reason ! .........DYOR !
RichardLY
20 Jul 2016
Re: 9% Yield Reference where from?
coldascheese
20 Jul 2016
9% Yield Latest views-Valuation: A high yieldThe indicated 2.5p dividend represents a c 9% yield and management earnings guidance with potential to upstream for dividends in the new group structure should improve cover. Transparency should improve as GLI begins to report on its operating activities in more detail from H216, enabling investors to better assess the significant discount to NAV of 40p.
geared bottom fisher
29 Jun 2016
ZDP's I noticed the Zeros are trading below the issue price, the market isn't sure they will get repaid in full and they rank ahead of the ordin
r21442
25 May 2016
Another IC buy analysis, target 40.75p Aim-traded GLI Finance (GLIF:30p), a speciality finance company that invests in peer-to-peer and small- and medium-sized enterprise (SME) lending platforms in the UK, Europe and the US, has made some important announcements and ones worth further investigation.Firstly, following a strategic review implemented by new chief executive Andy Whelan, the company is reorganising its operational structure and buying out the minority interests in both Sancus Gibraltar, an offshore alternative secured lending business, and BMS Finance, a senior lending business focused on SMEs. GLI Finance is paying £23.5m consideration to buy the outstanding 84.71 per cent of the equity in Sancus Gibraltar by issuing £13.5m of new shares at 31.1p each to the vendors and by issuing a new £10m unsecured five-year bond at a coupon rate of 7 per cent per year. The company already owns 62.5 per cent of the equity of BMS Finance and is paying £5.1m in total to take 100 per cent control of which £3.45m of this sum will be settled by issuing new shares at 31.1p each.It makes strategic sense to do so as the funding for the BMS loan portfolio is derived partly from its own balance sheet, partly from GLI Finance and through each of the British Business Bank and the Ireland Strategic Investment Fund (ISIF) under matched funding agreements. The ISIF mandate is a recent win for BMS and will allow the business to expand its operations in Ireland. In addition, GLI Finance holds £16m worth of 10-year interest-bearing loan notes issued by BMS which carry a coupon rate of 7 per cent to support BMS's growing loan book. The plan is to consolidate all the Sancus and BMS sub groups under one unified operating subsidiary in order to better position the company to expand its lending operations. Also, as part of the reorganisation, GLI Finance will make an inter-company transfer of its 84 per cent equity shareholding and £5m of preference shares held in Platform Black to the newly rebranded Sancus BMS. Platform Black is an innovative online trading platform and lending business whose activities are complementary to those of both Sancus and BMS. Mr Whelan will become chief executive of the enlarged Sancus BMS business and forecasts that the unit will deliver pre-tax profits of £2.5m in the current year, rising to £4m in 2017 when loan books are fully deployed, the businesses are fully integrated and increasing levels of commercial, operating and financial savings are realised. Strategically sensible The restructuring not only improves the potential for the Sancus BMS in terms of generating free cash flow to service future dividend payments to GLI Finance's own shareholders, but importantly this free cash flow will be paid directly to the company.Currently, GLI Finance has 230m shares in issue and will be issuing 54.5m new shares as consideration for the two acquisitions including 6.6m shares to itself in exchange for the 15.29 per cent stake in Sancus Gibraltar it already owns. GLI Finance will also own £1.5m of the bonds being issued as part of the Sancus Gibraltar acquisition. This means about £1.2m of £4m of forecast pre-tax profit of BMS Sancus next year will be required to service the cash cost of the 2.5p a share annual dividend on the 47.9m new consideration shares being issued to the vendors of Sancus Gibraltar and BMS (after stripping out the 6.6m shares GLI Finance will own and which will be held in Treasury) and a further £595,000 is needed for the interest payments on £8.5m of the five-year bonds. This will leave a net £2.2m of profit before tax for the company to add to the annual dividend income of £2m it earns on the 25.3m shares held in Aim-traded investment firm GLI Alternative Finance (GLAF), and the substantial cash flow generated from its own loan book. To put this into perspective, the average annual interest rate charged on £56.2m-worth of loans GLI Finance has made to and through its lending platforms, an investmen
the julio
31 Mar 2016
Re: Latest IC article r21442Noted but appreciate you passing it on.
r21442
31 Mar 2016
Re: Latest IC article tj - not my discussions - Simon Thomson from Investors Chronicle
the julio
30 Mar 2016
Re: Latest IC article Thanks very much for the useful and detailed update of your discussions with Andy Whelan. Your report confirms my view that GLIF is worth sticking to..
r21442
30 Mar 2016
Latest IC article I have had a lengthy and enlightening post full-year results conference call with Andy Whelan, the new chief executive of Aim-traded GLI Finance (GLIF: 32.5p), a speciality finance company that invests in peer-to-peer and small- and medium-sized enterprise (SME) lending platforms in the UK, Europe and the US. The company is currently undertaking a strategic review of its operations in order to maximise the potential from its investment portfolio and instil a far higher degree of financial discipline. The first step has been to significantly deleverage GLI Finance's balance sheet, a process that led to a capital raise with Sommerton, the details of which I outlined at the start of this year ('GLI shelves fundraise and chief executive', 6 January 2016), and which has seen GLI Finance's borrowings halved to £14.86m. Somerston is a privately-owned group of companies based in Jersey and is primarily focused on real estate investment and private equity and venture capital.GLI Finance also owes £20.79m on the zero dividend preference (ZDP) shares it issued to the vendors of Sancus, an offshore alternative secured lending business, which makes loans to Channel Islands-based entrepreneurs, SMEs, high net worth individuals and professionals.Importantly, the Sommerton capital raise and disposal of part of GLI Finance's stake in GLI Alternative Finance (GLAF: 97.5p), the Aim-traded fund in which GLI Finance still retains 25.3m shares, or 47.99 per cent of the share capital, means that the interest rate on a new £14.86m syndicated loan has been lowered from 11 per cent to 8.75 per cent. Mr Whelan plans to refinance the debt again later this year with a view to getting the interest rate down to 7 per cent. That's important because the average annual interest rate charged on £56.2m-worth of loans GLI has made to and through the aforementioned platforms, an investment that accounts for 38 per cent of its £147m investment portfolio, is around 8 per cent, so it's paramount in getting the interest rate charged on GLI Finance's own debt below its cost of capital. Mr Whelan also says that as part of the ongoing review, platform loans that fail to meet GLI's strategic objectives will be run off with proceeds from maturity or realisation used to support equity investments in the other platform companies. Bearing this in mind, the board will allocate capital where it has the highest opportunity for value creation for shareholders.He is also taking a highly disciplined approach to the company's platform equity investments, which are held in the balance sheet at £57.8m in order to focus on those with the greatest potential to reap the gains for shareholders. He has so far identified certain platforms in which GLI has equity stakes and that have strong management coupled with scalable electronic platforms such as Finexkap, The Credit Junction, LiftForward and Funding Options. Mr Whelan has taken a seat on the board of each of these businesses, which will be prioritised platforms in the future. As a result, expect disposals of investments during the course of this year that failed to make the cut. Mr Whelan is tight-lipped on precise details, but he has good reason to be in light of the negotiation process to extract the best prices for shareholders. Focus on cash flow underpins sustainable dividend Of course, one of the reasons why the shares are priced 25 per cent below the net asset value (NAV) of 42.7p is because the company was forced to write down the value of some of its portfolio last year. NAV per share declined from 51p at the end of 2014. It also reflects operating expenses that were out of line with the business. Bearing this in mind, Mr Whelan plans to cut £1m from overheads this year. He has also made sure that all the loans held are now either generating income for the platform company through which they were made, or producing cash flow for the benefit of GLI Finance's shareholders. That's i
the julio
29 Mar 2016
Re: Results 2015 Thanks for the response. You may well be right. Being an optimist I hope you are wrong
Damp Seaweed
29 Mar 2016
Re: Results 2015 What makes you believe there will be no dividend in future?=========They say they will pay a min of 2.5p, paid quarterly, but given the losses, I think it highly unlikely that they will be able to sustain that for very long.
