Primorus Investments PLC (LON:PRIM) plans to exit some of its investment positions this year so it can create “tangible value” for its shareholders.
News of possible returns in the near-term sent shares climbing 13.3% to 0.17p in early afternoon trading on Friday.
Among a swathe of other investments, Primorus has a 5% stake in Horse Hill Developments, which itself has a 65% interest in the ‘Gatwick Gusher’ oil project.
It also has stakes in recruitment software specialist Engage Technology and Aussie restaurant and food services group Fresho, as well as a handful of others.
“2017 was dominated by portfolio acquisition, consolidation and rationalisation through the participation in our first secondary funding rounds and the sale of our legacy stake in Gold Mines of Wales and the exceptional growth seen at Engage Technology and Fresho,” said chairman Jeremy Taylor-Firth.
“We look forward to 2018 being one in which we can demonstrate our business model by exiting some more of our investment positions, thereby realising tangible value for all shareholders.”
That isn’t to say that Primorus won’t invest in any other companies though.
Taylor-Firth added: “The board remains confident that the private and pre-IPO markets remain significantly under-served and as such significant opportunities exist for the company going forward.”
‘Optimistic’ about Horse Hill
As for Horse Hill, arguably Primorus’ most high-profile investment, an extended flow test is due to start there soon and Primorus is optimistic that the testing will return “substantial flow-rates”.
“The board looks forward with considerable interest to the upcoming long-term extended flow test programme in 2018 and its likely potential impact on our investment value going forward.”
For 2017, Primorus reported a pre-tax loss of £947,000, from the £694,000 loss it reported in the prior year, with no revenue recorded.
The wider loss was driven by £311,000 in share-based payments and a £199,000 loss on the disposal of Gold Mines of Wales in December.
Primorus reported no debt and assets of £1.3mln at the end of 2017.