GLI FINANCE returned to operating profit in 2017 boosted by its alternative lending business Sancus BMS.
The Aim-listed firm reported an operating profit of £0.1m in its annual results, released on Monday, up from a £2.8m loss in 2016.
Its subsidiary Sancus BMS, which owns re-branded peer-to-peer lenders Sancus Finance and Sancus Funding, reported a 26 per cent increase in operating profit for 2017.
However, GLI Finance still made a pre-tax loss of £15.1m, albeit a slight improvement on the £16.3m loss in 2016. Much of the loss for last year came from £12.6m of writedowns in its Fintech Ventures portfolio.
GLI Finance spent most of 2017 overhauling its business which saw the creation of Sancus BMS to manage and rename the Platform Black and Funding Knight P2P brands.
Sancus Finance, formerly Platform Black, and Sancus Funding, the new name for Funding Knight, will later be merged into a single Sancus UK brand, GLI Finance said.
The results showed both P2P lenders saw their operating loss reduced by £0.8m to £1.5m during 2017, while the other brands of Sancus BMS in Gibraltar, Guernsey and Jersey, reported profits of £2.8m.
The total Sancus BMS loanbook grew by 26 per cent annually to £218m, GLI Finance said.
“Sancus BMS is the key operating unit within the group and is starting to deliver on its potential.” Andy Whelan, chief executive of GLI Finance, said.
“The businesses that comprise Sancus BMS are good businesses, well run, with the ability to deliver healthy returns.”