26th Aug 2020 12:02
(Alliance News) - Primorus Investments PLC on Wednesday said it swung to profit in the first half of 2020 thanks to gains on the disposal of AFS investments and has benefited from value growth in primary listed investment Greatland Gold PLC.
Shares in Primorus were up 5.3% at 3.00 in London at midday.
The London-based investment company swung to a GBP3.3 million pretax profit for the six months ended June 30, from a USD418,000 loss the year before.
This was due to a swing to a GBP2.7 million unrealised gain on market value movement of AFS investments from a GBP18,000 loss as well as a swing to an GBP834,000 realised gain on disposal of AFS investments from a GBP136,000 loss.
Total assets, including cash, came to GBP8.1 million as at June 40, up 65% from GBP4.9 million the previous year.
The company benefited greatly from a decision "to take substantial exposure to gold via its investment portfolio" before Covid-19 hit.
"This strategy has been handsomely rewarded with exceptional growth in the 'mark to market' value of our primary listed investment, Greatland Gold PLC. During the period we have seen a continued surge in the USD gold price and also in values of many of the large technology companies, as global consumer and work practices react and evolve to the changing social and business environment," Primorus Chair Jeremy Taylor-Firth noted.
Shares in Greatland were trading at 13.95p in London on Wednesday, having ended 2019 at just 1.80p.
Commenting on the outlook, Taylor-Firth said: "The board remains confident that significant opportunities exist for the company going forward. We look forward to the remainder of 2020 being a period in which we can further demonstrate our business model by exiting some more of our investment positions, thereby realising tangible value for all shareholders."
He noted that the company's board is intending to resolve with its board and nominated adviser the ability for Primorus to buy back as much as 10% of its issued capital via a buyback programme, which would then be approved by shareholders.
By Anna Farley; [email protected]
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