The Company will today make available its report and accounts for the year ended 31 December 2019 on the Company's website www.argogrouplimited.com. These will be sent by post to shareholders in the next 2 weeks.
Key highlights for the twelve months ended 31 December 2019
- Revenues US$4.9 million (2018: US$4.6 million)
- Operating loss US$0.2 million (2018: operating loss US$0.8 million)
- Profit before tax US$1.0 million (2018: loss before tax of US$1.2 million)
- Net assets US$21.5 million (2017: US$23.3 million)
Commenting on the results and outlook, Kyriakos Rialas, Chief Executive of Argo said:
"Increased volatility in 2019 from trade war uncertainties, Brexit and the reversal of US interest rates influenced emerging markets positioning and returns. In this environment, The Argo Fund performed well in the first six months of the year but in August 2019 a sizeable drop in Argentina bonds all but eliminated profits for the year. The distressed credit strategy in the Argo Distressed Credit Fund did better, resulting in performance fees being paid to the management company. Overall Argo Group increased profits compared to 2018 but additional growth of assets and streamlining of operations is needed going forward so as to balance income arising from management fees and performance fees. In November 2019 The Argo Fund was modified to introduce a Master Feeder Fund structure so as to accommodate additional investor profiles and to bring the distressed strategy under a single umbrella. The real estate side of the business has successfully arranged the refinancing of its major asset in Ukraine with EBRD which will allow the faster payment down of the loan. Furthermore, this refinancing will allow the elimination of costly and unnecessary holding companies. Emphasis on cost control continues and in 2020 this will include taking all back-office operations to London and eliminating the Cypriot office."