Information  X 
Enter a valid email address

GLI Finance to close supply chain finance division; warns of material write downs in fintech portfol

By BFN News | 07:42 AM | Friday 08 February, 2019


GLI Finance said it had generated record loan origination levels in 2018, but announced it would close its subsidiary Sancus finance after performance fell short of expectations. The company also offered a dour assessment of its Fintech porfolio, warning of material write downs. GLI Finance loan origination levels rose 21% increase to about £168m year-over-year and Sancus BMS, the group's core business, saw revenues rise 28% to about £13m, the company said. Sancus Finance, the supply chain finance division, would be closed down as it remained loss making and was expected to report forecast operating loss of £1m. The decision to shut Sancus Finance comes as the market for supply chain finance had changed significantly, with credit insurers reducing appetite to write cover and increasing premiums markedly. Performance was hurt by a £1.1m exposure to a supply chain finance borrower which 'recently went into administration and the Group will prudently recognise a provision in respect of its full exposure in 2018, the company said. Sancus BMS's remaining operations in the UK would continue to provide education funding and asset backed lending, the company added. The Group Fintech Ventures portfolio offered little optimism as its expected to take a hit from material write downs. The company said platforms were finding it harder to raise further capital at the valuation levels previously expected. Those that successfully raised further capital in 2018 were better placed to execute on their long-term business plans but this had, in some cases, resulted in a significant dilution for the company. Story provided by StockMarketWire.com

a d v e r t i s e m e n t