5th Jun 2020 14:34
(Alliance News) - RiverFort Global Opportunities PLC on Friday said its net asset value per share increased in 2019, though subsequently declined in the first quarter.
Shares in Riverfort were down 6.4% at 0.70 pence in London in afternoon trading.
The AIM-listed investment company's NAV per share increased by 8.5% to 0.116p on December 31 from 0.107p the year before.
"2019 has been another very busy year during which the company has been actively deploying its investment capital by investing principally in listed junior companies through debt and equity linked products," explained Non-Executive Chair Philip Haydn-Slater.
"As at the end of the year, the company held around GBP4.3 million of its investment portfolio in this type of investment. The company also has a small equity portfolio which now principally comprises its investment in Pires Investments PLC," the Chair added.
He credited the improved year-on-year result to this strategy.
No dividend was declared for the period, with RiverFort opting to retain cash amid the Covid-19 until the outlook becomes clearer.
Post year-end, on March 3, a 1 for 10 share consolidation was rppoved by shareholders as part of a capital reduction. The share price therefore increased to be times higher than what it had been.
Using the post-consolidation figures, in the three months ended March 31, RiverFort's NAV per share fell 0.5% to 1.15p from 1.16p due to a decline in the share price of Pires Investments. Since the end of March, however, "this reduction has already reversed".
At present, the firm is holding back on deployment and focusing on recovering cash from investments to minimise portfolio risk.
"Going forward, the company is continuing to look to actively invest its capital in new opportunities and there continues to be ongoing interest for funding from junior listed companies which can deliver attractive investment returns, particularly given the current Covid-19 pandemic situation as funding has become more difficult. As the outlook becomes clearer, the company will begin to deploy more capital," Haydn-Slater commented.
By Anna Farley; [email protected]
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