31st Jul 2019 13:24
(Alliance News) - ARGO Group Ltd on Wednesday said it swung to profit in the first half of 2019 following a recovery in global markets.
The investment company recorded pretax profit of USD1.5 million in the six months to the end of June compared to USD714,000 loss reported a year earlier, as revenue increased to USD2.4 million from USD2.2 million.
Meanwhile, employee costs fell by 4.2% to USD1.3 million and operating expenses were reduced by 7.0% to USD520,000.
Argo explained that, following the disappointing performance last year, markets recovered strongly in the first half of 2019. Safe-haven assets such as government bonds and gold were amongst the best performers, particularly in the second quarter, whilst risk assets also recorded year-to-date gains.
"In the first six months of 2019 Argo has been active on several fronts," said Chief Executive Kyriakos Rialas.
"Firstly, it completed a successful shareholder buyback providing liquidity to those shareholders who wished to exit," Rialas continued. "Secondly at fund level we have completed the monetisation of our long-term investment in the Indonesian Refinery Company Tuban Petrochemical by selling and closing a position that has been in our books for around 15 years."
Argo shares were trading 1.6% higher on Wednesday in London at 21.33 pence each.
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