EMV Capital's (AIM:EMVC) interim results painted a mixed but ultimately encouraging picture.
Headline group revenues slipped 8% year-on-year to £2.87 million, though this was almost entirely due to a production halt at subsidiary ProAxsis.
With production now restarted, Panmure Liberum sees this as a temporary setback rather than a structural problem.
Stripping out that drag, the core group showed clear progress. Revenues from its fund management and advisory arms rose 5.2% to £1.04 million, covering 79% of costs compared with 58% a year earlier.
Integration of Martlet Capital delivered fresh income and cost synergies, while assets under management grew 6.2% to £104.7 million. Losses in core operations narrowed to £0.3 million from £0.6 million, signalling a clearer path towards breakeven.
There were notable portfolio developments. Deeptech Recycling secured an £11 million financing term sheet from the Norwegian government for a commercial plastics plant, boosting EMVC’s stake value by 68%.
Q-Bot, meanwhile, restructured and refinanced, reducing costs by 60% and lifting EMVC’s direct ownership to 29.6%. Wanda Healthcare’s valuation climbed as recurring revenues increased, while Martlet Capital delivered a successful exit at 2.5 times investment.
Despite operational progress, EMV’s shares remain heavily discounted, trading at 46.6p (up 2.4%) versus Panmure Liberum’s sum-of-the-parts valuation of 136p.
That 60%-plus discount underpins the broker’s 'buy' recommendation, with analysts arguing the breadth of the portfolio and improving operational discipline offer ample scope for re-rating once market sentiment steadies.