Funding Circle SME Income report a solid set of results – Funding Circle SME Income Fund (FCIF) delivered its annual financial report for the 12 month period to 31 March 2018.
Highlights
- The NAV per ordinary share rose by 14.9% (total return) over the report period.
- The share price remains at a premium to NAV of 4.8% and is little changed over the year.
- The ordinary share NAV increased to £308 million from £165 million, including C shares issued for £142 million in April 2017 which converted to Ordinary shares in December 2017.
- Total comprehensive income for the year amounted to £17.2 million (2017: £11.1 million).
- Aggregate dividends of 6.5p per ordinary share declared for the year ended 31 March 2018.
- Dividend of 1.73p per C share declared on 20 November 2017. This was paid on 21 December 2017, prior to conversion of the C shares to ordinary shares.
- Participated in a structured finance transaction with Citibank London (“Citibank transaction”) in January 2018, involving the setting up of a new Designated Activity Company (“Lambeth”).
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Changes to the capital management of the company over the year to 31st March 2018
In April 2017, the company issued 142 million C shares at a price of £1 per C share raising net proceeds of £139,870,000 after issue costs of £2,130,000. The C shares were admitted to the premium segment of the Official List of the UK Financial Conduct Authority and to trading on the London Stock Exchange’s Main Market on 12 April 2017. The C shares converted to ordinary shares on 20 December 2017 (note 9).
In January 2018, the company entered into the Citibank transaction to establish Lambeth to make loans to UK small businesses through the Funding Circle platform. Under the terms of the agreement, Citibank London (“Citibank”) provided £50 million into the transaction, by entering into a senior floating rate loan. The group contributed a portfolio of existing UK small business loans with a value of £53,472,022 (note 4).
In February 2018, the company issued 24,928,394 new ordinary shares at a price of 100.23 pence per share to be held in treasury. The net cash position of the company following these transactions remained unchanged. In May 2018, the company’s ordinary shares currently held in Treasury (the “Treasury Shares”) were made available to meet market demand from existing and new investors (note 10).
The company issued scrip dividends during the year amounting to £2,009,470 and 1,953,598 shares (2017: £702,909 and 685,063 shares).
More about Funding Circle SME Income
Funding Circle SME Income Fund Limited is a closed-ended investment company incorporated with liability limited by shares in Guernsey under The Companies (Guernsey) Law, 2008 (as amended), on 22 July 2015.
The company’s investment objective is to provide shareholders with a sustainable and attractive level of dividend income, primarily by way of investment in credit assets as defined in the company’s prospectus.
FCIF : Funding Circle SME Income report a solid set of results