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TRADING UPDATES: Braveheart writes down value of two investments

17th May 2024 18:45

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Wednesday and not separately reported by Alliance News:

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Braveheart Investment Group PLC - Dodworth, England-based investment company - Updates on the valuation of two assets within its investment portfolio ahead of the publication of its annual results for the financial year ended March. Decides to write down the value of investment in Paraytec Ltd, book value at March 31 2023 of GBP3.0 million and Kirkstall Ltd, book value at March 31 2023 of GBP1.7 million, to zero in financial 2024 accounts. Braveheart previously announced it was looking for a buyer for Paraytec but had failed to secure a suitable offer. Since then, performance has deteriorated. As a result, Braveheart no longer believes that the outstanding loans to Paraytec, totalling GBP1.4 million, as at March 31 2024, will be repaid in the short-term. In addition, says Kirkstall has been unable to achieve certain sales milestones and discussions with M&A advisers and potential acquirers have not progressed. Therefore, no longer believes that Braveheart's outstanding loans to Kirkstall, totalling GBP0.2 million as at March 31 2024, will be repaid in the short-term. These write downs, together with the sale of the interest in Phase Focus Holdings Ltd for GBP2.1 million, mean the book value of the equity investment portfolio is expected to be significantly reduced at around GBP1.8 million compared to GBP9.5 million as at March 31, 2023. Further, Braveheart says it has implemented a range of actions to rationalise the cost base and to preserve cash.

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Fletcher King PLC - London-based chartered surveyors firm - Provides further detail relating to the trading update announced on May 3. Says the number of deals completed has been relatively low but this has been compensated by a higher than normal average deal size. Notes the company remains well supported by a strong balance sheet with no debt, providing optionality for investment activity including co-investment in in-house property syndicates and any value accretive corporate opportunities. Plans to carefully consider the level of dividend to recommend based on the audited final results. Points out the company has a track record of distributing profits and the final dividend can therefore be expected to be higher than last year.

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Fenikso Ltd - investor in Nigerian oil and gas assets, previously known as Lekoil Ltd - Announces the receipt of funds under the Lekoil & Gas Investments loan entered in to on December 31 2022 as part of the Fenikso restructuring. Receives USD1.3 million as partial repayment of the loan of USD51.9 million with the remaining balance USD42.2 million. Notes the amount received equates to around 8.7% of the most recent payment from crude oil sales received by LOGI. The next payment is scheduled before the end of June. The proceeds will go towards repaying the Savannah Energy Investments Ltd loan, which currently has an outstanding balance of USD13.3 million, and towards building up cash in Fenikso. Post the payment to Savannah Energy, Fenikso expects to have over USD4.0 million of cash on its balance sheet.

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Vast Resources PLC - mining company with operations in Central Asia, Eastern Europe and Africa - Raises GBP616,000 through a placing of 280.0 million shares at 0.22 pence each. The placing was undertaken by the company's joint broker, Axis Capital Markets Ltd. Proceeds to be used for bridging the short-term gap in operational expenses while the company awaits the first tranche of the structural refinancing to close and to cover near-term corporate obligations, and working capital needs. Further, says the owner of the Swiss Investment Co confirmed Monday that he expects to transfer the funds, relating to the refinancing, shortly. Whilst the board is reassured by this confirmation and is hopeful of the release of funds, there can be no guarantee that this funding will be secured.

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By Jeremy Cutler, Alliance News reporter

Comments and questions to [email protected]

Copyright 2024 Alliance News Ltd. All Rights Reserved.

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