Primorus Investments plc (AIM: PRIM, NEX: PRIM) is pleased to provide the quarter ending 31 December 2019 (“Q4” or the “Quarter”) investor update regarding its current holdings and activities acquired and managed as per its investing policy.
Executive Director’s Quarterly Comment – Alastair Clayton
Whilst the fourth Quarter of 2019 was again another period of solid growth across our diverse portfolio, it is fair to say that post-period (early 2020) has got off to an excellent start. We will return to these headline-grabbing matters later on but given the long-overdue but underwhelming increase in share price at the time or writing, it is worth remembering that Primorus is not a one trick pony.
We find ourselves in early 2020 with a diverse and growing portfolio, primarily in unlisted technology and energy companies. Our 5 largest investments by deployed capital are Engage Technology Partners (£1.5m), WeShop (£875,000), Greatland Gold PLC (£625,000), TruSpine (£500,000) and Fresho (circa £260,000).
On top of our direct equity investments we sometimes add to our balance sheet through a use of debt investing that generates interest and picking up equity options. A good example of this was the Zuuse Series B investment where the outlay was returned to treasury and interest in fully paid shares and a significant number of in-the-money options (compared to last raise) being sent to the balance sheet.
We do also have shares in publicly listed companies in an effort to increase the liquidity and look through value of the portfolio. Sometimes these are very small investments made to effectively manage cash and add incrementally to the balance sheet through opportunistic means.
We may also sometimes identify something special that we believe represents an opportunity in a listed company that has the potential to make an outsized contribution to our shareholders. Clearly our investment in Greatland Gold PLC is an example of this.
So, the question really is what should our share price be if the core portfolio of unlisted investments is better recognised? I believe many of our investments have the potential to, or already have, eclipsed even the Greatland Gold investment in terms of performance and as demonstrated in 2019, many of our investments can be exited in the absence of a public quotation.
· Total Greatland Gold PLC (“Greatland”) investment appreciates significantly to over £1,850,000 (over 40% of our total market cap.) on further outstanding drilling results at Havieron. Current potential profit on investment now over £1,250,000. We are expecting further appreciation in the Greatland share price.
· TruSpine (“TruSpine”) secures 2 tranches totalling £1m of development funding from a successful medical devices family office. IPO expected to now occur during 2020 as a result of securing this strategic investor.
· Fresho Gross Order Volume up to nearly A$2m per day now through the platform at 31 December 2019. Invoice finance feature Freshopay begins revenue generation. Now scheduled to launch Q1 in the UK.
· Engage Technology Partners (“Engage”) continues to grab market share and attract industry attention. Outstanding growth in Self-Serve truly scalable SaaS products as transition of business model gathers pace. Breakeven poised for Q3/4 with expected high growth and profitability thereafter.
· Zuuse formally confirms successful completion of A$16m capital raise at (equity) A$1 per share. Primorus retains 57,205 shares and 1m options at $0.50 exercise price.
· Company finishes the quarter debt-free and the Board still foresees no short to medium term need or intention to raise capital.