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Financial Services

Yolo Leisure and Tech shares edge lower as investments fall in value in first half

In the six months ended March 31, Yolo recorded an unrealised loss on the remeasurement of its investments of £26,600, versus a gain of £178,100 in the first half of last year

Shares in YOLO Leisure and Technology plc (LON:YOLO) edged lower on Tuesday after the AIM-listed firm reported a fall in the value of its investments in the first half of its financial year.

In the six months ended March 31, Yolo recorded an unrealised loss on the remeasurement of its investments of £26,600, versus a gain of £178,100 in the first half of last year.

As a result of that unrealised loss, the company swung to a loss before tax of £163,600 (H1 17: profit of £62,100).

In total, its portfolio was worth £3.90mln at the end of March, compared with £3.88mln in the year-ago period.

Net asset value more than double share price​

Yolo – which invests in companies in the media technology space – did add that its net asset value works out to 9.9p a share; comfortably above its current share price.

“Based on fair values at 31 March 2018, our investments are showing a potential gross return on investment of over 20%,” read Tuesday’s half-year report.

“We believe that there is still significant upside to be delivered and we are working with each of the boards of our investee companies to realise this potential.”

The company has invested in five companies: esports group Gfinity Plc (LON:GFIN); pay-TV platform TVPlayer; broadcasting solutions firm Simplestream; music entertainment specialist Magic Media Works; and podcast platform Audioboom PLC (LON:BOOM).

After opening higher, shares fell 3.2% to 4.6p in mid-morning trade.

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