JUST LOANS PLC :INVESTOR UPDATE
November 14 2017 - 10:43AM
JUST LOANS PLC / JUST LOANS PLC :INVESTOR UPDATE . Processed and
transmitted by Nasdaq Corporate Solutions. The issuer is solely
responsible for the content of this announcement.
03 November 2017
INVESTOR UPDATE
I wrote to you in June enclosing a
copy of our Annual Report and inviting you to attend our AGM. A few
shareholders did attend the AGM and I am pleased to report that all
the resolutions that had been proposed were passed unanimously. Our
interim accounts to 30 June 2017 were published on the Cyprus and
Vienna Stock Exchange websites and, of course, on our own
website.
In order for the Group to meet its
growth targets it is necessary to raise the funds to be lent out.
The Group signed a £10m facility with the US fund manager SQN
Capital Management in December 15. This facility has now been drawn
down fully. In July 2017, the Group signed a facility with SQN
Secured Income Fund for a further £10M facility allowing the Group
to drawdown £2M per month. The Group has utilised £4M of this
facility, drawing down £2M in July and August. This institutional
fundraising is in addition to the continued fund raising from the
sale of debenture securities which are traded on the Emerging
Companies Market of the Cyprus Stock.
In addition, at the end of 2016, the Company
signed a facility agreement with an institution, who are looking to
raise £50Million via a Bond issue designed for institutional
Investors. The proceeds of this Bond issue will be loaned to the
Company and the Bond issue is secured on a basket of loan
facilities of the Company. The processes and procedures of Just
Cash Flow were rated by an independent rating authority for the
purpose of the Bond which was awarded an Investment Grade A with
stable outlook. To date the company has received £13.3M of which
£9.0m was received in September. It is expected that we will
receive another £10m before the end of the year.
The Group is confident that further funding will
be made available from SQN and the other institutional funder but
the directors continue to source additional funding from other
institutional investors which will further enable the Group to
broaden its product range for the SME market.
The development of our proprietary
"Propensity" lending process is now complete as is the core of our
proprietary "AlfiLMS" IT system. The AlfiLMS system will continue
to evolve with the addition of new Fintech systems that become
available, and / or are upgraded, in order to ensure that our
system remains one of the most advanced customer acquisition and
management systems in operation.
The second half of the
financial year has started well and the new institutional funding
will enable the Group's loan book to reach the critical mass
required for the Group to start making profit. The additional
funding will also enable the Group to broaden its product range for
UK SMEs. We have been working on a banking system to complement our
loan products. This will provide our customers with all the
facilities of a "normal" bank including BACS, CHAPS, foreign
currency, standing orders, direct debits etc but with the one
exception that we will not take deposits or pay interest. This
banking system will be rolled out in the first half of 2018 and we
will be seen as a major competitor of the other Challenger Banks
such as Monzo, Starling and Atom. There are also plans for the
Group to open in other selected European markets as the
opportunities arise but this will be financed in local currency in
order to reduce any foreign exchange risks.
The potential listing of our
shares on AIM or another senior UK stock market has been delayed
until later in 2018. The successful launch of our new banking
solution will have a major impact on our prospects and market
perception and the directors consider that there will be a
significant advantage to shareholders to delay any application
until the banking product is in place.
I thank you for your continuing
support. I truly believe that 2018 will be an exciting and
profitable year for the company and its investors.
Yours sincerely
John Davies
Chief Executive
The Directors of the Issuer
accept responsibility for the contents of this announcement.
FOR FURTHER INFORMATION PLEASE CONTACT:
Robert Boot
Director
1 Charterhouse Mews
London EC1M 6BB
Email : rboot@thejust-group.com
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: JUST LOANS PLC via Globenewswire
--- End of Message ---
JUST LOANS PLC
1 Charterhouse Mews London UK
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