AGM season in full swing: CML Group
CML Group held its AGM. You don't own equity shares in CML Group, instead you own a listed convertible-hybrid. Your Investment Team does monitor the company's performance and outlook though, ensuring that the distribution payments are sustainable, and being mindful of the possibility of conversion to equity. CML's core business is invoice financing.
Following a challenging FY-15 (including restrictions due to funding availability), FY-16 is looking positive. Long term funding, and the acquisition of Cashflow Finance will provide CML with scale. Whilst specific guidance was not provided, the loan book has increased 28% from the end of June to the end of October. Furthermore, as the book continues to grow, the interest cost of unutilised funding will lessen. Both these factors point to a strong outlook for CML for FY-16.