08:00 Wed 11 Sep 2019
RiverFort Global Opp - Half-year Report
11 September 2019
("RGO" or the "Company")
Unaudited interim results for the 6 months ended
Highlights
· Total income generated of
· Increase in net asset value since the beginning of the year of almost 6%
· De-risked investment portfolio with around 90% now comprising debt instruments and cash
· NAV per share is at a 49% premium to the period end share price
· The Company is continuing to build on the progress made in 2018 and is generating significant level of investment income
· Profit for the six month period of
· Net profit margin of 63% and operating cash flow margin of 62% achieved during the period
· In excess of
· Additional investments made during 2019 in companies including Jubilee Metals Group plc, Anglo African Oil and Gas plc and UK Oil and Gas plc
· Continued strong demand for investment capital
Chairman's review
We have continued to make good progress in Q2 2019, delivering a significantly improved result for the first six months of 2019 compared to the whole of 2018. The majority of the
The analysis of income for the period is set out below:
|
|
Half year to |
Year to |
|
|
£ |
£ |
Investment income |
|
549 |
513 |
Net income from financial instruments at FVTPL |
|
127 |
(929) |
|
|
|
|
Total investment income |
|
676 |
(416) |
This significantly improved level of total investment income in 2019 has been driven by the returns made from the Company's investment in RiverFort-generated opportunities. During this period, administration costs amounted to
The key unaudited performance indicators are set out below:
Performance indicator |
|
|
Change |
Investment income |
|
|
|
Net asset value |
£7,678,162 |
|
+5.8% |
Net asset value - fully diluted per share |
0.113p |
0.107p |
+5.8% |
Closing share price |
0.076p |
0.090p |
-15.5% |
Net asset value premium to the share price |
49% |
19% |
|
Market capitalisation |
|
|
-15.5% |
Whilst 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. This is against the background of a significant reduction in the risk profile of the Company's investment portfolio, where some 90% is represented by debt instruments and cash.
The Company's principal investment portfolio categories are summarised below:
Category |
Cost or valuation at |
|
|
|
|
Debt and equity- linked debt investments |
4,863,204 |
62.3% |
Equity investments |
649,056 |
8.3% |
Other |
200,000 |
2.6% |
Cash resources |
2,090,220 |
26.8% |
|
|
|
Total |
7,802,480 |
100.0% |
The Company's net asset value has increased by 6% since the beginning of the year and the Company has continued to build its investment portfolio of RiverFort-arranged investments. Also, during the half year, the Company's equity portfolio has reduced as a result of disposals of equity holding and a fall in the share price of
As the Company continues to build its investment portfolio, it has been agreed with RiverFort that it will waive certain of its investment adviser fees for the first half 2019. In consideration for this, the Company has agreed to extend the current term of the investment adviser agreement with RiverFort by an additional six months. Under the AIM Rules, RiverFort, as the Company's investment adviser, is regarded as a
The Company is continuing to see a number of interesting investment opportunities where it can deploy its investment funds in order to make attractive returns. Furthermore, given the Company's ability to generate significant levels of investment income and profits, going forward, the Board is looking carefully at ways to enhance returns to shareholders that may include dividends and share buybacks.
Philip Haydn-Slater
Non-Executive Chairman
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For more information, please contact:
Philip Haydn-Slater, Non-Executive Chairman
Nicholas Lee, Investment Director
Nominated Adviser:
Beaumont Cornish +44 (0) 20 7628 3396
Roland Cornish/Felicity Geidt
Joint Broker: +44 (0) 20 7601 6100
Damon Heath/Erik Woolgar
Joint Broker: +44 (0) 20 7562 3351
Lucy Williams
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED
|
Unaudited 6 months ended 30 June 2019 |
Unaudited 6 months ended 30 June 2018 |
Audited Year ended 31 December 2018 |
|
£ |
£ |
£ |
|
|
|
|
Net gain/(loss) from financial instruments at FVTPL |
126,670 |
(110,119) |
(965,228) |
|
|
|
|
Investment income |
549,137 |
169,759 |
512,743 |
|
|
|
|
Total income |
675,807 |
59,640 |
(452,485) |
|
|
|
|
Administration expenses |
(252,372) |
(157,122) |
(278,707) |
|
|
|
|
Profit/(loss) before taxation |
423,435 |
(97,482) |
(731,192) |
|
|
|
|
Taxation |
- |
- |
- |
|
|
|
|
Profit/(loss) for the period and total comprehensive income |
423,435 |
(97,482) |
(731,192) |
|
|
|
|
|
|
|
|
Basic earnings/(loss) per share |
|
|
|
Continuing and total operations |
0.006p |
(0.005)p |
(0.018)p |
|
|
|
|
Fully diluted earnings/(loss) per share |
|
|
|
Continuing and total operations |
0.006p |
(0.005)p |
(0.018)p |
UNAUDITED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED
|
Called up share capital |
Share premium account |
Other reserves |
Retained deficit |
Total equity |
|
£ |
£ |
£ |
£ |
£ |
|
|
|
|
|
|
Balance at |
4,269,546 |
3,191,257 |
100,150 |
(5,112,184) |
2,448,769 |
Loss for the year and total comprehensive expense |
- |
- |
- |
(731,192) |
(731,192) |
Share option reserve transfer following cancellation of options |
- |
- |
(73,150) |
73,150 |
- |
Share issues |
5,772,727 |
77,273 |
- |
- |
5,850,000 |
Share issue expenses |
|
(77,273) |
- |
(235,577) |
(312,850) |
Transactions with owners |
5,772,727 |
- |
- |
(235,577) |
5,537,150 |
|
|
|
|
|
|
Balance at |
10,042,273 |
3,191,257 |
27,000 |
(6,005,803) |
7,254,727 |
Profit for the period and total comprehensive income |
- |
- |
- |
423,435 |
423,435 |
|
|
|
|
|
|
Balance at |
9,542,273 |
3,191,257 |
27,000 |
(5,582,368) |
7,678,162 |
UNAUDITED STATEMENT OF FINANCIAL POSITION
AS AT
|
Unaudited 6 months ended 30 June 2019 |
Unaudited 6 months ended 30 June 2018 |
Audited Year ended 31 December 2018 |
|
£ |
£ |
£ |
|
|
|
|
ASSETS |
|
|
|
Non-current investments |
|
|
|
Financial asset investments |
883,588 |
- |
1,540,456 |
Total non-current assets |
883,588 |
- |
1,540,456 |
Current assets |
|
|
|
Financial asset investments |
4,828,672 |
2,494,958 |
2,253,259 |
Trade and other receivables |
242,096 |
4,424,824 |
206,107 |
Cash and cash equivalents |
2,090,220 |
871,452 |
3,597,734 |
Total current assets |
7,160,988 |
7,791,234 |
6,057,100 |
|
|
|
|
Total assets |
8,044,576 |
7,791,234 |
7,597,556 |
|
|
|
|
LIABILITIES |
|
|
|
Current liabilities |
|
|
|
Trade and other payables |
273,516 |
374,797 |
307,013 |
Other financial liabilities |
92,898 |
- |
35,816 |
Total current liabilities |
366,414 |
374,797 |
342,829 |
|
|
|
|
Net assets |
7,678,162 |
7,416,437 |
7,254,727 |
|
|
|
|
EQUITY |
|
|
|
Share capital |
10,042,273 |
9,542,273 |
10,042,273 |
Share premium account |
3,191,257 |
3,191,257 |
3,191,257 |
Capital redemption reserve |
27,000 |
27,000 |
27,000 |
Share option reserve |
- |
73,150 |
- |
Retained losses |
(5,582,368) |
(5,417,243) |
(6,005,803) |
|
|
|
|
Total equity |
7,678,162 |
7,416,437 |
7,254,727 |
|
|
|
|
UNAUDITED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED
|
Unaudited 6 months ended 30 June 2019 |
Unaudited 6 months ended 30 June 2018 |
Audited Year ended 31 December 2018 |
|
£ |
£ |
£ |
|
|
|
|
Cash flows from operating activities |
|
|
|
Investment income received |
518,743 |
78,904 |
332,664 |
Operating expenses paid |
(101,869) |
(122,319) |
(277,396) |
Net cash inflow/(outflow) from operating activities |
416,874 |
(43,415) |
55,268 |
|
|
|
|
Cash flows from investing activities |
|
|
|
Purchase of investments |
(3,032,776) |
(318,424) |
(3,204,994) |
Proceeds from disposal of investments |
69,678 |
256,496 |
783,975 |
Debt instrument repayments |
1,097,132 |
- |
193,211 |
Net payments on forward exchange contracts |
(65,899) |
- |
- |
Net cash used in investing activities |
(1,931,865) |
(61,928) |
(2,227,808) |
|
|
|
|
Financing activities |
|
|
|
Net proceeds of share issues |
- |
765,000 |
5,537,150 |
Net cash from financing activities |
- |
765,000 |
5,537,150 |
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
(1,514,991) |
659,657 |
3,364,610 |
Cash and cash equivalents at beginning of period |
3,597,734 |
211,795 |
211,795 |
Effect of foreign currency exchange on cash |
7,477 |
- |
21,329 |
|
|
|
|
Cash and cash equivalents at end of period |
2,090,220 |
871,452 |
3,597,734 |
|
|
|
|
NOTES TO THE INTERIM REPORT
1. The financial information set out in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The group's statutory financial statements for the period ended
The interim financial information has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) and on the same basis and using the same accounting policies as used in the financial statements for the year ended
The financial statements have been prepared on a going concern basis under the historical cost convention.
The Directors believe that the going concern basis is appropriate for the preparation of the financial statements as the Company is in a position to meet all its liabilities as they fall due.
2. Earnings per share
Earnings per share is calculated by dividing the profit/(loss) attributable to equity shareholders by the weighted average number of shares in issue.
|
Six months ended 30 June 2019 (unaudited) |
Six months ended 30 June 2018 (unaudited) |
Year ended 31 December 2018 (audited) |
|
|
|
|
Weighted average number of shares in the period |
6,789,335,226 |
1,811,936,934 |
4,152,597,991 |
Profit/(Loss) from continuing and total operations |
|
( |
( |
Basic and fully diluted earnings per share: |
|
|
|
From continuing and total operations |
0.006p |
(0.005)p |
(0.018)p |
There are no share options or warrants outstanding that would be dilutive for earnings per share, so the weighted average number of shares in issue is the same for both basic and fully diluted earnings per share calculations. |
3. No interim dividend will be paid.
4. Copies of the interim report can be obtained from: The Company Secretary,
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