Member Info for Therosy1

I don't have a problem with debt as long as the income being generated from the assets purchased with the debt is greater than the cost of servicing the debt.

I also don't have a problem with buying back shares instead of reducing debt as long as the "rate of return" buying back the shares (ie dividend cost) is greater than the cost of servicing the debt.

See my post of 7th August at 11.52 for my suggestion.

Indeed, Guitarsolo, considering that the net assets are about 90 million and market cap is only at 44 million, there is potential for upside. Also the fact that there is 20 plus million in "expected credit losses" and who knows how many tens of millions in unrealised equity losses, the possibility of any of those write-downs being reversed must make it a really attractive proposition.

I keep telling myself that anyway, while I hold in anticipation.

GLA

Another RNS and another entrant into the fray.

Jefferies Financial with a total of 8% of the Company including a Swap of 10 million shares that expires on 30th September 2025.

Something is surely about to happen!

Mr Market is clearly unimpressed by all the uncertainty surrounding this vote. Share price on the slide.

I, for one, will be glad when the votes are in and counted.

Well, the RNS is in. Not what I expected. No explanation for the recent large trades - another 1.5 million today. But Saba have almost doubled their "bet" to about 11% of the Share capital.

Their Swap expires on 28th November 2025. Patience might yet be rewarded.

136,500 shares voted. Against 1 and 2. For 3 and 4.

I am still unconvinced by RM but also want to send a message to GSF.

@Shanieg69, maybe just a minor issue but I am not happy with the reduction in the dividend from 2.11p to 2.10p. A backward step that does not appear to be fully explained to Investors. I am sure that some kind soul will correct me on that if I am mistaken (thank you in advance).

Then there is the continued discount to NAV that the shares are trading at. Are they doing enough? Are they just being complacent?

I have no worries about "voting for all" that could ask for a Company discontinuation. I tend to "vote against all". Just a small voice of protest that will probably go unheeded.

GLA

Late reporting of one trade brought the total to about 11 million shares traded.

Still no news of a major holder increasing or decreasing their holding.

Big trades going through today. 8.5 million shares traded at 15.60p and share price has moved up, suggesting they are all buys.

It would be good to get a RNS to show who has bought in.

Maybe boardroom change announced is being seen as a positive move?

GLA

@alibaba42, did you read my post of 5th August at 12.13? Net income plus capital gains have been greater than the sum of dividends paid from inception to full year 2025.

I get what you are saying but "dividend cover" is a matter of how one looks at it, imo.

The "special" is supposedly covered by the tax credits and the future 0.75p is supposedly the minimum expected from future earnings.

More will, hopefully, be clear come January. I am in no rush to sell at the moment.

@Etotheipi, the income for the next few months is decent. 1p already set to arrive on the 15th August with 1.50p "special" replacing the quarterly dividend in October and then the following quarter (January) there will be the remaining "special" of 1.50p AND the new 0.75p dividend. Excluding the 15th August payment, there will be 3.75p by the end of January 2026. Not a bad income.

I intend to hold until at least the January 2026 payment is received. I will then review future prospects.

I have voted against the RM nominees but in favour of removing the two incumbents. They all should know that I, for one, am not happy with the way shareholders have been treated and that RM's narrative is unconvincing.

GLA

Sold my entire holding of 20,000 shares at 120.7p earlier today. Not showing here yet.

Postcard received today too.

I am posting this just for information. Make of it what you will - I offer no opinion.

Since inception in 2018 up to the full year 2025 results, GSF has made net profits of £31,885,244 on the income account and £92,929,780 on the capital account. I haven't analysed whether the capital profits are realised or unrealised. The total of the two comes to £124,815,024.

In the same period, the Company has paid dividends of £122,204,611.

So, that means the Company has made more money for shareholders than has been paid in dividends.

Just saying...

PhilipFG - the RM insider, definitely, in my opinion.

"How many posters on this forum have been shareholders for close to three years?"

I first bought shares in GSF in March 2021. And in answer to another question, I have holdings in my ISA, SIPP and Investment Account with a total of over 135,000 shares. Also with HL but I have not been contacted to be asked how I will vote.

To restate - I am voting against the RM nominations and for removal of the two current NEDs.

GLA

"I'm not going to deviate into all of that. what we can control we've delivered on and what we plan to deliver we intend to do."

Really? They control the dividend but failed to deliver the 7p target for 2025. Did anyone ask them why they missed it and tried to cover it up by wrapping it in a "special" dividend and at the same time cutting the first quarter's payment as well as virtually halving the 2026 payout?

Thank you for the Resolutions, StarBright. I think my votes will be against RM replacements and for removing sitting members of the Board.

I am not sure how I will vote at the EGM. I shall wait until voting is available at HL and decide when I see the options.

As stated previously, I am not convinced by RM's narrative or trust their motives.

But I will continue to hold for the dividends for now. The recent 1p is certain. The first half of the "special" will be coming around October with the second half as well as the quarterly 0.75p around January. At that point. the dust should have settled and the prospects for the new normal 0.75 per quarter (or more if revenues allow) will be more clear. I shall decide then whether future prospects deserve my investments.

GLA

Share buybacks and selling shares from treasury - question for discussion.

Is it in Shareholders' interests for a company to buy back shares when trading at a discount to NAV and sell them again when trading at a premium?

Examples:

NAV at 100p and shares trading at 90p. Buyback gives a 10p benefit to shareholders.

NAV at 50p and shares trading at 60p. Selling from treasury gives a 10p benefit to shareholders.

But if these are the same shares, the company has spent 90p and received 60p - a loss of 30p.

Question - is this a worthwhile strategy?

I know that I have used an extreme example but all thoughts on the subject are welcome.

When looking for long-term investments for dividend income, I tend to look at historic figures to determine whether the dividend is sustainable. I am happy for companies to use built up reserves to smooth the path but I like to see that earnings will mostly cover the cost.

Yes, let's move on. My feeling about the request (not just from HFEL but every company I own) for authority to allot new shares without applying pre-emptive rights, is that I always vote against the proposal. I have voted against the HFEL EGM proposal for the shares I hold in my ISA and SIPP.

i am happy for any company to use Treasury shares to sell into the Market at a price higher than NAV.

I do not like the fact that, since my initial investment in HFEL in 2021, there have been capital losses (net realised and unrealised gains as well as losses) of almost £130 million up to 2024. That is a staggering number. But I will continue to hold this as part of a diversified portfolio - for as long as the dividend is being paid from earnings.

GLA