30th Sep 2013 13:15
LONDON (Alliance News) - GLI Finance Limited Monday said it swung to a half-year profit after its total income increased by more than two-and-a-half times.
GLIF, an investment company focused on lending to small- and medium-sized enterprises, made a GBP4.1 million profit after finance costs for the six months to June 30, compared with a GBP2.1 million loss for the corresponding period the year prior.
GLIF's total income increased to GBP8.0 million, as it recorded an overall unrealized gain on investments of GBP6.0 million, compared with last half-year's GBP3.6 million unrealised loss.
"The continuing low interest rate environment and increasing confidence of investors in financial assets has brought more and more competition into the mainstream loan markets," Patrick Firth, non-executive chairman, said in a statement. "But, to ensure that GLIF continues to provide the double-digit returns we are seeking, we will continue to evolve our strategy to reflect these changing market dynamics."
In a separate statement, GLIF said it was issuing new stock by way of an accelerated book-building process at a minimum price of 51 pence per share, to raise between GBP3.6 million and GBP6.6 million.
This will see between 7 million and 13 million shares placed on AIM for trading. GLIF said it would use the net proceeds to fund the expansion of its BMS Finance loan book, as well as to invest across the alternative-funding platforms in which it recently has taken an interest. These are Funding Knight, an investment it announced on July 16, and Platform Black, announced on September 2.
The book-building process will be run by stockbroker Panmure Gordon Limited, part of Panmure Gordon & Co. PLC, and the new shares are expected to begin trading on AIM on October 25.
GLIF shares were Monday quoted at 52.00 pence, down 1.5 pence, or 2.8%.
By Samuel Agini; [email protected]; @samuelagini
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