GLI Finance Limited
NAV and Trading Update
18 August 2014
GLI Finance Limited ("GLIF" or the "Company"), a leading provider of finance to small and medium sized enterprises in the UK, US and Europe, is pleased to announce its net asset value ("NAV") as at 30 June 2014 and give an update on trading ahead of its interim results which are expected to be announced on 23 September 2014.
The NAV of the Company as at 30 June 2014 was 48.5p per share, compared to 49.99p per share as at 31 December 2013, a fall of 2.9%. Whilst the Company's sterling assets rose by 2.41p per share, its dollar assets fell by 3.87p per share. This was principally a combination of the weakening of the dollar by 3.2%, equivalent to 2.06p per share and a fall in the value of its CLO assets on disposal equivalent to 2.68p per share. This fall was partially offset by an increase of 1.5% in the value of the Company's equity shareholding in Fair Oaks Income Fund ("FOIF") since the IPO of FOIF on 12 June 2014 and an increase in the value of Raiseworks, the Company's US platform.
During the six month period ended 30 June 2014, the Company disposed of its remaining direct CLO investments through sales in the market and the IPO of FOIF. GLIF transferred its remaining CLO investments to FOIF in consideration for a cash element of approximately $20.4 million and the issue of 34,298,425 shares in FOIF at a price of $1.00 per share. The cash received from the transaction has now been fully invested into GLIF's underlying SME finance assets and the remaining holding in FOIF was valued as at 30 June 2014 at £19.8m. The Company's net cash position was £6.1m at the period end, all of which has been earmarked for specific investments.
The aggregate value of the Company's platforms increased during the period, reflecting both the five acquisitions completed in the period* and an increase in the carrying value of certain platforms. The increase in value is attributable to growth in those platforms and the heightened focus of investors on alternative finance platforms as a viable source of funding for SMEs. At the end of the period the value of the equity held in the various platforms within the GLIF family totalled ￡16.7m (31 December 2013: £6.7m).
Update on trading
Existing platforms continue to grow their businesses, deploying increasing amounts of GLIF's capital across a wide range of maturities. Over the period the volume of loans originated through GLIF's platforms increased by 48% to £41.0m, of which the amount GLIF invested through the platforms increased by 60% to £8.5m.
The total value of loans held by GLIF, originated through GLIF's partnerships with its platforms, totalled £23.9m as at 30 June 2014 (31 December 2013: £14m). The origination capability through all of the Company's platforms continues to accelerate, as do the opportunities available to the Company to deploy its capital through those platforms in order to optimize returns to shareholders.
As a result of GLIF's strategic positioning as a leading player in the global alternative finance and marketplace lending sector, GLIF is now a preferred partner in the space. This has resulted in a number of opportunities to bring further complementary platforms into the GLIF family over the coming months. We are also in discussions with a number of national and supra-national institutions on the provision of SME finance in their particular areas.
* Platforms acquired during the period were:
· January 2014 - Finpoint UK,
· February 2014 - TradeRiver Finance
· February 2014 - European Receivables Exchange
· February 2014 - CrowdShed
· March 2014 - Proplend
For further information, please contact:
GLI Finance Limited
Geoffrey Miller
+1 203 916 0003
+44 7408 830719
Panmure Gordon
Dominic Morley
+44 (0)20 7886 2500
Joanne Lake
+44 (0)113 357 1151
Camarco
Ed Gascoigne-Pees
+44 (0)203 757 4984
+44 (0)788 400 1949
About GLI Finance
GLI Finance is a specialist provider of finance to small and medium sized enterprises and is quoted on AIM. GLIF both invests in loans to SMEs and originates finance for SMEs through a variety of finance platforms.