Adamas Finance Asia Limited (LON:ADAM) said its portfolio has remained resilient in the face of the headwinds created by the coronavirus (COVID-19) pandemic, with underlying valuations being mostly unaffected.
In a trading update, the Asia-focused small company financier said its estimated net asset value (NAV) on September 30, 2020, was 73p/ 95 US cents (June 30, 2020: 75p/ 95 US cents).
The consolidated unaudited estimated NAV on the same date was US$99.4mln (June 30, 2020: US$100.2mln).
The NAV decrease was impacted by a slight increase in liabilities during the quarter, the firm noted.
In the portfolio update, John Croft, Adamas chairman, said: “The Company is confident in the current valuations moving forward mainly because ADAM's investments are consistently structured with downside protection, as well as their diversified nature, and their location in a region which has learned well from previous outbreaks and is now reopening and recovering.”
Croft added that, during the period, the group successfully raised a further US$1.7mln through a corporate bond and undertook its first equity raise by way of Open Offer and Placing to raise £3.13mln.
“The Board remains cautious during the COVID-19 pandemic, but it is confident in the outlook for the Company and of delivering value for its shareholders in the longer term," he added.
In an update of its key investments, Adamas noted that the final permit for Future Metal Holdings Limited ( 44% of NAV) is expected shortly, while Fook Lam Moon's restaurant operations in Hong Kong (28% of NAV) gradually returned to normal during 3Q 2020.