15th Jul 2016 06:59
LONDON (Alliance News) - Opera Investments PLC on Friday said it swung to profit in its first half ended June 30, on the back of recovered due diligence fees, and said it was continuing to look for investment opportunities after two potential purchases did not complete during the period.
Opera struck a deal in July 2015 to acquire SoloPower, a US-based solar energy company, via a GBP220.0 million reverse takeover deal with Hudson Clean Energy Partners, a US private equity firm. However, in May, Opera said it had received notification from Hudson that SoloPower will seek to fund itself without the need for a public offering or London listing, meaning the acquisition will be terminated.
In June, Opera said it had reached a deal to buy Highlands Helium Development Ltd, the owner of Highlands' Helios Two natural gas and helium project in Montana, US, but earlier this month said there was a "mutual agreement" with parent company Highlands Natural Resources PLC to terminate the deal.
In the statement on Friday, Opera said it was continuing to analyse and identify suitable investment opportunities in the mining and energy sectors which could fit with its investment strategy.
During the six months ended June 30, Opera said it swung to profit, posting pretax profit of GBP67,051, compared with the GBP26,823 loss it recorded the same period a year earlier. This came as other operating income came in at GBP219,015 for the period, relating to the due diligence expenses recovered in relation to the terminated deal with Hudson Clean Energy. Opera posted no other operating income a year earlier.
"We are determined to deliver value for our shareholders and reiterate that we will only proceed and commit the company's cash resources to the investigation of a potential acquisition on the identification of a compelling transaction," Chairman Paul Dudley said.
By Hannah Boland; [email protected]; @Hannaheboland
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