GLI Finance expects FY loss due to weakness in core business
By Iain Gilbert
Date: Tuesday 04 Feb 2020
(Sharecast News) - GLI Finance warned on Tuesday that it expects to report a full-year operating loss due to weakness in its core business, Sancus BMS.
Sancus BMS was projected to post a year-on-year fall in revenues to £13m from £13.3m, as its loan book growth did not translate into revenue growth and a reduction in interest income and slower than expected growth in the UK outweighed some cost savings efforts.
GLI Finance expects to cut a further £1.0m in costs after having cut its headcount from 42 to 34 staff.
However, the AIM-listed group did note that it could potentially still deliver a net operating profit if plans to refinance a development loan can be put into place.
"Discussions in relation to the refinancing of the loan are progressing and, if they are successfully concluded before finalisation of the group's audited accounts for 2019, the group expects to release the provision and deliver a net operating profit for FY19," said GLI.
As of 0945 GMT, GLI shares had sunk 15.60% to 4.60p.
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