11th Sep 2019 11:50
(Alliance News) - RiverFort Global Opportunities PLC on Wednesday reported a rise in net assets in the first half of 2019 but said its stock is trading at a "substantial discount".
Net assets at June 30 totalled GBP7.7 million, up 5.8% from GBP7.3 million in December. Net asset value per share rose by 5.6% to 0.113 pence from 0.107p. The company's closing share price on June 30 was 0.076p, a 33% discount to net asset value.
Shares in the company were 14% higher at 0.074p apiece in London on Wednesday morning.
RiverFort said: "While the company is continuing to grow its net asset value, generate a significant level of investment income and is profitable, the company's shares are trading at a very substantial discount to net asset value."
Total investment income rose sharply to GBP675,807 from GBP59,640 in the first six months of 2018, RiverFort added. This was helped by a gain of GBP126,670 in the value of its financial instruments, compared with a GBP110,119 loss the year before.
RiverFort reported a "significant reduction" in the risk profile of its investment portfolio, adding that roughly 90% of its investments are represented by cash or debt instruments.
Debt & equity-linked debt investments represented 62% of the portfolio and cash resources totalled 27% of its investments.
Looking ahead, the company said it is looking at ways to enhance shareholder return, including adopting dividends and buybacks.
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