8th Feb 2019 09:01
LONDON (Alliance News) - GLI Finance Ltd on Friday said it has decided to close its loss-making supply chain finance to focus on the core asset backed lending offering.
In addition, GLI said it expects to suffer further material write downs in its Fintech Ventures portfolio, as several of the platforms are finding it harder to raise further capital at the valuation levels previously expected.
The investment company said its core unit, Sancus BMS Group Ltd, continued to grow, generating revenue of GBP13 million in the year to the end of December 2018, up 28% on the prior year.
Meanwhile, Sancus Finance Ltd, which operates GLI's supply chain finance offering in the UK, remains loss making and behind management expectations with a forceast operating loss of GBP1 million.
As a result, GLI said it has taken the decision to close its supply chain finance offering, while Sancus BMS's remaining operations in the UK will continue to provide education funding and asset backed lending.
"Sancus BMS recently surpassed a GBP1 billion total lending milestone and, with a very strong pipeline and a proprietary electronic platform, the business is well placed to achieve further scale," GLI said in the statement Friday.
GLI shares were trading 17% lower on Friday at 6.00 pence each.
Related Shares:
GLIF.L