RiverFort Global Opportunities hails ‘excellent’ half-year results
The group described the six-month period to 30 June 2020 as “very busy” as it focused on recovering cash from investments to reduce the level of risk within its investment portfolio.
RiverFort said this was managed successfully with investment activity since increasing substantially with the Company making a number of new investments during the period.
During the period, RiverFort generated investment income of £0.77m from its investment portfolio, with this level of profit underpinned by strong cash generation from operations.
Net asset value rose 7.2% over the period to £8.45m since the beginning of the year while the group’s net profit margin grew 73.9% with an operating cash flow margin of 72.1%.
RiverFort generated substantial cash from cash recovery exercises and several investment returns, leaving the group with a significant cash balance of £3.3m for further investment.
Shares in RiverFort Global Opportunities have recovered strongly from lows of 0.55p In March this year to open at 0.82p this morning.
The Company said its equity portfolio, which principally comprises its investment in Pires Investments, has ‘increased significantly’ in value since the end of the first quarter of the year. It noted that since period-end, the share price of Pires has increased by over 30%.
Reflecting on the half-year results, Non-Executive Chairman, Philip Haydn-Slater, said:
“Whilst the company is continuing to grow its net asset value, generate a significant level of investment income and is profitable, the Company's shares are still trading at a very substantial discount given its net asset value and ability to generate profits.”
With regard to looking forward, Mr Haydn added, “The Company is continuing to actively deploy its investment capital and is seeing a number of interesting investment opportunities where it can deploy its investment funds in order to make attractive returns.
We are very confident that the Company will continue to make good progress as we move into the second half of the year.”
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