RiverFort Global Opp – RGO – Final Results

RiverFort Global Opp – RGO – Final Results

RiverFort Global Opportunities plc, the investment company listed on AIM, is pleased to announce its audited final results for the year ended 31 December 2019 (extracts from which are set out below) and that the financial statements will shortly be posted to shareholders and made available on the website www.riverfortglobalopportunities.com

For more information please contact:

RiverFort Global Opportunities plc +44 20 7580 7576
Phillip Haydn-Slater, Non-executive Chairman
Nominated Adviser +44 20 7628 3396
Beaumont Cornish
Roland Cornish/Felicity Geidt
Joint Broker +44 20 7186 9950
Shard Capital Partners LLP
Damon Heath/ Erik Woolgar
Joint Broker +44 20 7562 3351
Peterhouse Corporate Finance
Lucy Williams

 

 

 

CHAIRMAN’S STATEMENT

 

During the year ended 31 December 2019, the Company has continued to operate as an investment company.

 

FINANCIAL REVIEW

For the year to 31 December 2019, the Company made a profit from continuing operations of £623,690 (2018: loss of £731,192). The net asset value of the Company as at 31 December 2019 was £7,878,417 (2018: £7,254,727). 

The Company’s investment portfolio at 31 December 2019 is divided into the following categories:

Category

Cost or valuation (£)

Debt and equity-linked debt investments

4,349,211

Equity investments and other

848,635

Cash resources

2,624,480

Total

7,822,326

 

REVIEW OF THE YEAR

2019 has been another very busy year during which the Company has been actively deploying its investment capital by investing principally in listed junior companies through debt and equity linked products.

 

These investment structures lower volatility and risk and enable the Company to drive profits and cash income.  We believe that this is an attractive investment strategy and by investing in the Company, investors are able to gain access to this investment strategy via a publicly listed vehicle. As at the end of the year, the Company held around £4.3 million of its investment portfolio in this type of investment.  The Company also has a small equity portfolio which now principally comprises its investment in Pires Investments plc.

 

As a result of the strategy described above, the Company’s results for the year have significantly improved compared to the previous year and clearly validate the Company’s focus on building its debt and equity-linked debt portfolio.

 

Income breakdown

2019

2018

£000

£000

Investment income

889

513

Net gain/(loss) from financial instruments at FVTPL

128

(929)

Net foreign exchange losses on other financial instruments

(69)

(30)

Total income

948

(446)

Administration costs

(303)

(288)

Other gains and losses

(21)

3

Operating profit/(loss)

624

(731)

 

Investment income derives principally from the fees and interest income in relation to our debt and equity linked debt investments. The net gain/loss from financial instruments at FVTPL represents the impact of valuing the investment portfolio at fair value as described under IFRS 9 accounting policy.

 

More details of the company’s investing activities and investment portfolio are set out in the Strategic Report.

 

OUTLOOK AND STRATEGY

Going forward, the Company is continuing to look to actively invest its capital in new opportunities and there continues to be ongoing interest for funding from junior listed companies which can deliver attractive investment returns, particularly given the current Covid-19 pandemic situation as funding has become more difficult.   However, given the uncertainty created by the Covid-19 pandemic, the Company has held back on capital deployment during Q1 of 2020 and has focused on recovering cash from its investments in order to reduce risk. This has been achieved successfully and so, as a result, the Company still has a substantial cash balance to deploy. As the outlook becomes clearer, the Company will begin to deploy more capital.

As we have previously mentioned, we are focused on delivering returns to shareholders and, to this end, we have now successfully implemented a capital reorganisation and reduction which will enable us to pay both dividends and buy back shares. At this stage, however, given the Covid-19 pandemic situation, we believe that it is prudent to retain cash until the outlook is more certain.

In summary, we very much believe that the year’s results demonstrate that the Company has made significant progress and is very well placed to build on this progress going forward into 2020.

 

 

 

Philip Haydn-Slater

Non-Executive Chairman

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