26th Feb 2015 12:17
LONDON (Alliance News) - Sarossa PLC Thursday said its first-half profit almost tripled, on the back of significant valuation gains on its investment portfolio.
The investment company reported a pretax profit of GBP1.3 million for the six months to end-December, compared with GBP468,000 last year, boosted by a substantial gain on its portfolio investments, which increased to GBP1.4 million from GBP524,000.
"The board has continued to adopt a highly selective investment approach in these times of global economic uncertainty. Consequently, whilst the board identified and reviewed a number of potential opportunities in the period, only one further follow on investment of GBP0.32 million was made," the company said in a statement.
The company currently holds four principal portfolio investments, all of which are AIM-listed companies, and they had a total carrying value of GBP12.2 million at end-December 2014, compared with GBP1.6 million at end-June. The company's holdings include a 4.2% equity stake in Silence Therapeutics PLC and an investment in Plant Health Care PLC of below 3%.
Sarossa said it continues to benefit from a strong balance sheet with cash balances of GBP6.3 million at the end of the period.
"Looking ahead, there remain many threats to a sustained global recovery including the conflicts that have no quick solutions in the Ukraine and the Middle East, the potential spectre of a European Union breakup following the change of government and strategy in Greece and UK elections which could pave the way for a referendum on its EU membership," said Chairman Michael Bretherton in the statement.
"Your board will, therefore, continue to maintain a rigorous and highly selective investment approach with a view to exploiting opportunities as they emerge. We remain committed to delivering additional value for shareholders going forward," Bretherton added.
Sarossa shares were trading 6.4% lower Thursday midday at 1.582 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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