Braveheart Investment Group PLC (AIM:BRH) will outline a new investment strategy at its next annual general meeting due to shifting market conditions and new business opportunities.
Having explored multiple strategies over the last 16 years, chief executive officer Trevor Brown believes using the balance sheet to make and increase its investments is no longer an option.
If in 2015, when Brown took charge, an investor had bought the shares Braveheart did they would have received a CAGR of 29%.
This means its portfolio outperformed the AIM market, the S&P 500 and Berkshire Hathaway during the eight years.
The group currently owns significant stakes in “cutting-edge science businesses” like:
- Paraytec Limited –a creator of rapid tests for pathogens, including viruses (100%)
- Kirkstall Limited - a lab test technology producer (86.11%)
- Phasefocus Holdings Limited – a computational microscopy developer (44.19%)
Braveheart also owns holdings in an architectural designer, a thermal insulation group and an X-ray screening company.
In the year to 31 March 2023, pre-tax profits rose to £2.4mln from £2.05mln in the year before and net assets jumped by over £3mln to £10.5mln, according to the company’s full-year results.
Free cash dropped to £935,000 from £1.8mln, after spending £1.5mln on investments during the financial year.
Revenue from contracts with customers dropped by over £13,000 year-on-year, but this was offset by a £110,000 increase in returns from exited investments and a jump in the fair value of its current holdings.
Braveheart shares lifted over 2.5% on Monday, opening at around 13p.