As a former long term holder of these shares; I sold out a while back, not long after Geoff Miller was ousted, having given the new Management team a chance to see what they could do, so it has been interesting to read comments on this board and elsewhere.
I note with interest that our former share holding (as wife held similar amount of shares) would be now be worth less in cash terms than the annual dividend we used to receive. How the times have changed.
Thanks Damp Seaweed.
I do find your posts interesting ( especially around the election ) Your thoughts since lol
I never bet on horses but did bet JC would do well after his conference speech.
But the following week i thought Mays speech even better interesting times.
I see this morning we are testing that 11.6p support level I mentioned back at the beginning of the month.
As to whether it holds or fails, I couldn't possibly say. But it is worth monitoring for a day or two. And maybe if it is holding next week then, possibly we may have found a bottom .....for now.
Loads of caveats as you can see
I have a attached the daily and monthly charts that I use. I tend to place more value on these charts for FTSE100 / large cap companies. None the less you don't have to be a charting fanatic to get a very clear, and sad picture.
I can't say that they are shouting to me a BUY. But they are coming down to a price were I might be considering a small flutter.......much as you might at Royal Ascot.
i have in the past only looked at a very basic chart, But i have started to read the ACTA board on this site which base everything on T/A .. due to that i have found out what bollinger bands are and this is below them i see.
There is much more comment on LSE site someone posted there about a huge discount ?
I note Artemis hold 7.84% have they reduced from a higher level ?
In case anyone is unaware, this is the new divi policy;
''The Board announced the Group's new dividend policy in its strategic update in August 2016. This recognises the need to balance dividend payments in the short term with the opportunities to grow the business for shareholders in the longer term. As such the Group's policy is to make dividend payments which are consistent with prudent capital and liquidity management, covered by cash earnings or realised profits on the sale of investments. Any dividend will be affordable.
GLI is committed to a providing a stable progressive platform for future growth.
In future, dividend payments will be made half yearly, September (interim dividend) and March (final dividend), with a weighting in payment of approximately one third/two thirds. ''
So in all probability the income seekers have moved on, and folk looking for growth have yet to be convinced.
I think it make be wise to wait until they next report to determine if they are making a profit and if any is going to be available for distribution
From a T/A perspective, the next support level is ~ 11.6p
Extract from Chairman's Statement in the Interim Results (26/09/2016)
''As stated in the August strategic update, dividends going forward will be sustainable and covered by the cash earnings of the business. Further guidance for 2017 dividends will be provided at the end of the year.''
So unless I have missed an announcement, then pi's should have started asking questions at Christmas.
I have just noticed that the date announcing the dividend declaration has been removed form their website. It must have happened after I made my post yesterday afternoon !
The next scheduled announcement if the results at the end of March
It is getting a bit worrying
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.
Valuation: A high yield
The 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.
(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.
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
Read Panmures very in-depth initiation note on GLI Finance (GLIF), out this morning, by visiting www.research-tree.com
"BMS has launched in Ireland. This 67% owned business made £1m last year and looks set to grow significantly. The endorsement of the Irish government underlines the strategic value of the SME lending services provided by the GLI platforms..."
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