Drumz plc (AIM:DRUM), the software investor and incubator, reported reduced operating losses in the first half as revenue increased, thanks to developments at its main investment, Acuity Risk Management.
The investing company said it will continue seeking new investment opportunities.
Its two main assets are stakes in Acuity Risk Management Limited, which specialises in risk management and cybersecurity, and a 'legacy' holding in KCR Residential REIT, which owns property in the private rented residential sector.
"The improvement in the number and the quality of the sales leads Acuity is now generating is a growing testament to the progress that has been made and bodes well for the future," said Simon Bennett, chair.
Acuity continues to perform well, Drumz said, with a 26% increase in turnover for the year ended March 31, to £1.55mln.
Holdings in KCR Residential Reit, a company listed on AIM, which owns property in the private rented residential sector, continued to disappoint though.
In the six months ended June 30, 2022, KCR continued to perform poorly in terms of share price performance.
Drumz's holding in KCR was valued at £317,000 at June 30, 2022, down from £390,000 at December 31, 2021, a further loss of £73,000 on this investment.
Drumz's revenue for the six months ended June 30 was £30,000, up from £18,000 in 2021, while operating losses were lower at £184,000 from £261,000 a year earlier.
"We have identified several interesting target businesses during the period and made a number of proposals to acquire them, which would have turned Drumz from an investment company to a trading company," said chief executive Angus Forrest.
Shares of the company were down 10% at 0.9p.