By Daniel Lanyon on Thursday 30 May 2019
One of the firm’s platforms, outside its core business, will likely cease operations.
AIM-listed GLI Finance has said that a lending platform in its Fintech Ventures portfolio is facing “significant financial difficulties” and requires an immediate capital injection to continue trading, according to a market update.
GLI Finance did not reveal which platform it was referring to but has previously warned, back in February, that its supply chain finance offering in the UK Sancus Finance - formerly known as Platform Black - was loss-making and that it would close. Also, at the same time it gave a warning it expected to suffer further material write-downs in its Fintech Ventures portfolio.
It said a trading update this week: “Whilst the Platform is in talks with various parties to source immediate further investment, there is no guarantee that such talks will be successful. Accordingly, the Board believes that it is appropriate to write down the value of this investment to zero, resulting in a £1.9m fair value adjustment.”
The alternative finance focused group’s core business, Sancus BMS, is continuing to grow, the firm also said in the statement, and has performed in line with expectations so far year to date.