13 May 2016 14:56
CITY OF LONDON GROUP PLC
("COLG" or "the Company")
13 May 2016
Trading Update
The Board of City of London Group PLC announces an update regarding its investments.
Following the appointment of Jason Granite as a director of the Company on 18 April 2016 a detailed strategic review has been undertaken of the group and its investments.
On 29 January 2016 the Company announced that there was likely to be a significant impairment to the value of its investment in Trade Finance Partners Limited ("TFPL").
TFPL's financial position has continued to deteriorate and a number of its investments are significantly impaired. The Board now believes that there will be limited or no recovery from its overall investment in TFPL which was valued at £6,613,000 in the group's balance sheet at 30 September 2015. The Board continues to work closely with TFPL's principal secured creditor, Macquarie, to maximise recoveries and will provide a further update if it considers that the recovery position has improved such that COLG will receive a recovery on its investment. The group has no exposure to TFPL beyond its investment.
The Board has also considered carefully the position of Credit Asset Management Limited ("CAML") (COLG's other major investment, in which it has an 85% shareholding and which was valued at £2,330,000 in the September balance sheet of the Company) and has concluded that it should look at wider strategic options for this business to help it achieve scale, including possibly introducing additional investors or a sale of the business and/or loan books managed and owned by CAML. Jason Granite will lead the consideration of these strategic options on behalf of the Board.
For further information contact:
City of London Group plc +44 (0)20 7628 5518
Paul Milner (Chairman)
Jason Granite (Executive Director)
Peel Hunt LLP (Nominated Adviser and Broker) +44 (0)20 7418 8900
James Britton
Guy Wiehahn
Notes to Editors:
City of London Group plc is listed on AIM (TIDM: CIN) and is an investment company focused on providing finance to the SME sector, including professional services firms. It does this through investments in companies providing trade finance, lease finance and loan finance.
www.cityoflondongroup.com