LONDON (Alliance News) - P2P Global Investments PLC Tuesday said it stands to benefit if the peer-to-peer and online lending industry grows as the company expects in 2015.
P2P is an investment company which takes exposure to loans made to consumers, smaller businesses and other credit assets through alternative and online lenders. It has equity stakes in P2P platforms.
"Despite the rapid growth of online lending in 2014, the board believes that we are still very much in the early stages of the industry's development. The proportion of the global market share for consumer, SME and trade finance loans to which online originators cater could potentially rival traditional lenders and is likely to be very large from where we stand today. The board is confident that 2015 is destined to be another year of industry growth and opportunity where the company is poised to benefit," Chairman Stuart Cruickshank said in a statement.
The company thinks it can benefit as new lenders seek to challenge traditional high street banks, which have been distracted by the need to decrease leverage and tidy up their balance sheets since the global financial crisis of 2007-09.
P2P listed on the London Stock Exchange in May 2014, when it raised about GBP200 million. It then issued C shares in January 2015 to raise GBP250 million. It also signed a leverage facility with a European bank to enhance returns on a consumer loan portfolio.
The company said its net asset value per share total return, excluding issue costs, was 2.31% to December 31, 2014 from May 30 that year, with the shares closing the year at a 17.8% premium to NAV per share. Its NAV per share including income was 1,001.76 pence at the end of 2014.
It had invested 85% of its assets at the end of 2014.
"The company is continuously looking to expand on new platform opportunities, both on the debt and equity side, to evolve further the overall portfolio diversification and meet the company's strategic objectives," Chairman Stuart Cruickshank said in a statement.
Marshall Wace LLP is the investment manager of P2P Global Investments. According to the results statement, the investment manager wants to make changes to the company's investment policy to "take a full advantage of the present opportunities and increase the pace of deployment". It will set out the changes prior to the company's annual meeting of shareholders.
P2P shares were down 0.9% at 1,130.00p on Tuesday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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