Group and strategic review
2015 was a year of significant change, both in the management of the business and in corporate transactions undertaken.
Strategic review initiated in December 2015 with significant progress already made in platform prioritisation and against the short-term goals announced in February 2016.
Commenced second leg of the review with primary aim to increase focus on the core business:
o Aiming to obtain the largest and most sustainable 'gain' for the level of investment in human and capital resources.
o Seeking to maximise value of stakes in assets with complementary strengths, e.g. BMS, Sancus Gibraltar and Isle of Man alongside wholly owned Sancus entities.
Post year-end transaction with Somerston has significantly reduced Group indebtedness.
New focus on delivering margin and cash flow improvement with a focus on costs, efficiencies and asset utilisation.
Ultimate focus on creating a more robust business better placed to drive shareholder value.
Financial Highlights
Audited NAV per share of 42.73p as at 31 December 2015 (31 December 2014 51:00p). The reduction was primarily driven by write-downs in the value of investments and loans as at the year-end.
Loans processed by GLI's portfolio of platforms increased significantly in FY15 due to the addition of several platforms and strong origination growth at many of the platforms. The number of loans completed in the period increased by 113.4% while the average loan size decreased by 12.8%.
5p dividend paid (5p paid for the comparable period last year). At the end of 2015 the Company announced an update on the Dividend Policy to pay a dividend of not less than 2.5p per annum, paid quarterly.
Operational Highlights
Andy Whelan was appointed permanent CEO on 16 February 2016.
Disposal of our remaining CLO investment in Fair Oaks Income Fund.
Raised £20m in ordinary share capital in March 2015.
Funding Options, an SME finance aggregator and one of GLI's prioritised platforms, has been recommended by the British Business Bank as one of 3 platforms to go forward for designation by HM Treasury for the Bank Referral Scheme.
Patrick Firth, Chairman said
"We are going through a strategic review and the remainder of 2016 and beyond will be a period in which we assist the development of the prioritised platforms to enable them to significantly scale. As the platforms become more successful, we will seek to maximise and capture additional value for GLI. There will be further examples of potential areas we can exploit over time, but we will only do so where there is a manifest and measurable benefit to our own shareholders. The outlook for the industry is exciting although there are bound to be challenges along the way, the potential for GLI Finance and its prioritised platforms is considerable and the Board and Executive team are focused on improving shareholder value."
