GLI Finance portfolio repositioning continues

GLIF : GLI Finance portfolio repositioning continues

GLI Finance has announced its interims for the six months ended 30 June 2014. Over that period the net asset value fell from 49.99p to 48.53p – in part because of the strength of Sterling affecting the value of its dollar assets. It made a return on equity for the period of 12.26% – in line with its stated 10%-15% objective. The dividend was maintained at 2.5p and the Board has said it is the intention that the dividends paid will continue to be paid on the same basis throughout the period of the Company’s transition into the alternative finance market.

Five new investments in SME finance businesses were made during the period – Finpoint UK, a UK lender to SMEs; TradeRiver Finance, a global online trade finance company; European Receivables Exchange, a Danish invoice financing company; CrowdShed, a multi asset and multi jurisdiction crowd funding company and Proplend, a UK property backed lending company. Since the end of the period GLI Finance has made a further three investments into Finexkap, a French, web-based platform providing working capital financing; LiftForward, a P2P and marketplace financing platform provider and The Credit Junction, a marketplace working capital and supply chain financing platform. Three more are planned – UK Bond Network, a Peer-to-Peer Bond Platform which uses its syndicate of experienced investors to provide fast, flexible finance to businesses seeking debt funding; Ovamba, a peer-to-business investment platform that was created to address two issues: solve the problem of restricted access to affordable credit for the small and medium enterprise sector of Africa; and connect institutional investors and the diaspora to their home countries by offering safe, viable investment opportunities with good returns; and Finpoint Europe, which aims to provide a “one-stop” window for companies requiring funding, including development loans and grants.

As the business becomes more complex, Emma Stubbs, CFO, has been appointed a director of the company and Marc Krombach has been recruited as MD.

James Carthew, who wrote this post, is a director of GLI Finance