London Finance & Investment (LFI) AI Stock Analysis

• Market Cap: $21.85M
• Dividend Yield: 0.86%
• Average Volume (3M): 5.03K
• Price to Earnings (P/E): 5.5
• Beta (1Y): -0.22
• Revenue Growth: 1.77%
• EPS Growth: 358.91%
• Country: UK
• Employees: 4
• Sector: Financial
• Sector Strength: 76
• Industry: Asset Management
• EPS (TTM): 0.13
• Shares Outstanding: 31,207,480
• 10 Day Avg. Volume: 397
• 30 Day Avg. Volume: 5,027
• PEG Ratio: N/A
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -29.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ―

London Finance & Investment's overall score reflects strong financial health and attractive valuation but is significantly weighed down by technical indicators suggesting overbought conditions and the negative impact of corporate events. The planned capital return and delisting signal a cessation of growth, which tempers its investment appeal.

London Finance & Investment Business Overview & Revenue Model

Company Description

London Finance & Investment Group PLC (LFI) is an investment company listed on the London Stock Exchange. The company focuses on managing a diversified portfolio of investments across a variety of sectors, including listed equities and private equity. Its core services involve strategic long-term holdings in growth-oriented companies, as well as short-term trading opportunities to maximize returns.

How the Company Makes Money

London Finance & Investment makes money primarily through capital appreciation and dividend income from its portfolio of investments. The company invests in a mix of long-term strategic holdings and shorter-term trading positions. Capital appreciation is achieved by buying shares or stakes in companies whose value is expected to rise over time, while dividend income is generated from the distribution of profits by these companies. LFI may also engage in strategic partnerships and co-investments with other firms to enhance its investment opportunities. Additionally, the company earns revenue from disposing of investments at a gain when market conditions are favorable.

London Finance & Investment Financial Statement Overview

Summary

London Finance & Investment shows strong financial health with high profit margins and a stable balance sheet. The lack of debt and high equity ratio provide financial safety, but the limited leverage might constrain growth opportunities. Cash flow improvements are notable, but further conversion of income to cash would strengthen the financial position.

Income Statement

The company has shown strong revenue growth with a significant increase from the previous year, indicating a positive trajectory. The gross profit margin is robust at 80.2%, and the net profit margin is impressive at 88.7%, highlighting strong profitability. The EBIT and EBITDA margins are both at 91.3%, which further underscores operational efficiency. These metrics suggest a well-managed cost structure and a strong capability to convert revenues into profits.

Balance Sheet

The company's balance sheet is quite healthy with a high equity ratio of 94.5%, reflecting strong financial stability. The absence of debt indicates low financial risk, and the return on equity is excellent at 18.9%, showcasing effective management of equity. However, the lack of leverage means the company might have limited financial flexibility to capitalize on growth opportunities quickly.

Cash Flow

The cash flow from operations has improved significantly, though it remains modest. Free cash flow has turned positive, showing a remarkable turnaround, but its ratio to net income is low, suggesting that not all earnings are being converted into cash. This can indicate some potential constraints in cash management despite overall improvements.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
4.79M	4.70M	2.21M	60.00K	2.23M	-215.00K
	Gross Profit
4.32M	4.70M	1.77M	-304.00K	1.88M	-620.00K
	EBIT
4.00M	4.36M	1.70M	-340.00K	1.85M	-643.00K
	EBITDA
4.00M	4.36M	1.79M	-254.00K	1.95M	-498.00K
	Net Income Common Stockholders
3.94M	4.23M	1.38M	-430.00K	1.51M	-796.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.40M	23.54M	1.26M	407.00K	309.00K	269.00K
	Total Assets
22.60M	23.64M	20.02M	18.62M	20.88M	17.22M
	Total Debt
0.00	0.00	33.00K	174.00K	828.00K	571.00K
	Net Debt
-22.40M	-9.46M	-1.23M	-233.00K	519.00K	302.00K
	Total Liabilities
257.00K	1.30M	1.38M	1.39M	1.86M	1.32M
	Stockholders Equity
22.34M	22.34M	18.48M	17.09M	18.89M	15.80M
Cash Flow		Free Cash Flow
-738.00K	12.00K	-111.00K	274.00K	52.00K	96.00K
	Operating Cash Flow
-738.00K	16.00K	-111.00K	274.00K	52.00K	98.00K
	Investing Cash Flow
22.92M	8.57M	1.47M	852.00K	-237.00K	801.00K
	Financing Cash Flow
11.00K	-383.00K	-440.00K	-1.09M	225.00K	-870.00K

London Finance & Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LFI, the sentiment is Positive. The current price of 70 is below the 20-day moving average (MA) of 72.62, above the 50-day MA of 68.54, and above the 200-day MA of 61.20, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 47.54 is Neutral, neither overbought nor oversold. The STOCH value of -95.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:LFI.

London Finance & Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EDIN	75 Outperform		13.84	7.59%	8.29%	-14.28%	-8.45%
CLIG	65 Neutral	£166.05M	11.80	11.92%	6.41%	0.27%	1.47%
Sector *	64 Neutral	$12.73B	9.92	7.90%	78.88%	12.06%	-7.95%
LIO	58 Neutral	£243.10M	16.98	8.88%	11.35%	-22.50%	-15.51%
LFI	57 Neutral	$21.85M	5.55	17.78%	0.86%	1.77%	358.91%

London Finance & Investment Corporate Events

Lonfin Updates Timetable for Capital Reduction and Market Exit

London Finance & Investment Group PLC has announced an updated timetable for its capital reduction process, which includes the withdrawal of its admission to trading on the London Stock Exchange and the termination of its listing on the Johannesburg Stock Exchange. The changes, driven by delays in document processing at Companies House, will affect trading dates and shareholder distributions, with the final termination of the JSE listing expected by 20 May 2025. These adjustments are significant for stakeholders as they mark a strategic shift in the company’s market presence and compliance with listing requirements.

Spark’s Take on GB:LFI Stock

According to Spark, TipRanks’ AI Analyst, GB:LFI is a Neutral.

London Finance & Investment’s overall score reflects strong financial health and attractive valuation but is significantly weighed down by technical indicators suggesting overbought conditions and the negative impact of corporate events. The planned capital return and delisting signal a cessation of growth, which tempers its investment appeal.

To see Spark’s full report on GB:LFI stock, click here.

Lonfin Updates Share Suspension Plans

London Finance & Investment Group PLC announced that its shares will continue trading as normal on the London Stock Exchange, contrary to previous plans for suspension. The company will soon provide a new schedule for the withdrawal of shares and capital repayment to shareholders, indicating ongoing adjustments in its market strategy.

Spark’s Take on GB:LFI Stock

According to Spark, TipRanks’ AI Analyst, GB:LFI is a Neutral.

London Finance & Investment’s overall score reflects strong financial health and attractive valuation but is significantly weighed down by technical indicators suggesting overbought conditions and the negative impact of corporate events. The planned capital return and delisting signal a cessation of growth, which tempers its investment appeal.

To see Spark’s full report on GB:LFI stock, click here.

Lonfin’s Capital Reduction Sanctioned by High Court

London Finance & Investment Group PLC, known as Lonfin, has announced that the High Court of England & Wales has sanctioned the reduction of its share capital by cancelling 30,287,479 ordinary shares. This decision follows shareholder approval from a general meeting held in March 2025. The capital reduction will lead to a distribution of £0.7153 per share to shareholders as of the relevant record dates. However, due to delays at Companies House, the effective date of the capital reduction will be postponed, and shareholders will be informed of the new dates and other relevant details through official announcements.

Spark’s Take on GB:LFI Stock

According to Spark, TipRanks’ AI Analyst, GB:LFI is a Neutral.

London Finance & Investment’s overall score reflects strong financial health and attractive valuation but is significantly weighed down by technical indicators suggesting overbought conditions and the negative impact of corporate events. The planned capital return and delisting signal a cessation of growth, which tempers its investment appeal.

To see Spark’s full report on GB:LFI stock, click here.

Lonfin to Withdraw from LSE and Terminate JSE Listing

Lonfin announced the successful passing of resolutions at its General Meeting to withdraw its Ordinary Shares from trading on the London Stock Exchange and the Official List, subject to High Court approval. This move includes a Capital Reduction and Return of Capital to shareholders, which will reduce the number of Ordinary Shares in issue. The withdrawal from the London Stock Exchange is set for 2 May 2025, with the last trading day on 30 April 2025. Additionally, the company will terminate its listing on the JSE due to non-compliance with public shareholder spread requirements, with the earliest termination date being 9 May 2025.

Lonfin Announces Capital Return and Delisting Plans

London Finance & Investment Group PLC has announced a proposed return of capital to its shareholders, marking the cessation of its investment activities. The company plans to distribute surplus capital through a court-approved capital reduction, resulting in shareholders receiving approximately 71 pence per share. This move includes the withdrawal of Lonfin’s shares from trading on the London Stock Exchange and JSE Limited, effectively ending its status as a listed company. The decision is driven by the company’s inability to meet strategic objectives due to its small size and high operational costs, making it unattractive for acquisitions or raising additional capital without significant shareholder dilution.