TIDMRGO

RNS Number : 8928L

RiverFort Global Opportunities PLC

11 September 2019

11 September 2019

RiverFort Global Opportunities plc

("RGO" or the "Company")

Unaudited interim results for the 6 months ended 30 June 2019

RiverFort Global Opportunities plc is pleased to announce its unaudited interim results for the six months to 30 June 2019.

Highlights

   --      Total income generated of GBP676,000 in the six months to 30 June 2019 
   --      Increase in net asset value since the beginning of the year of almost 6% 
   --      De-risked investment portfolio with around 90% now comprising debt instruments and cash 
   --      NAV per share is at a 49% premium to the period end share price 

-- The Company is continuing to build on the progress made in 2018 and is generating significant level of investment income

-- Profit for the six month period of GBP423,000 and cash generated from operations of GBP417,000

   --      Net profit margin of 63% and operating cash flow margin of 62% achieved during the period 
   --      In excess of GBP2 million of cash available for further investment 

-- Additional investments made during 2019 in companies including Jubilee Metals Group plc, Anglo African Oil and Gas plc and UK Oil and Gas plc

   --      Continued strong demand for investment capital 

Chairman's review

We have continued to make good progress in Q2 2019, delivering a significantly improved result for the first six months of 2019 compared to the whole of 2018. The majority of the GBP549,000 of total investment income for the half year is being generated from RiverFort-arranged investments and, overall, after administration and other costs, we have been able to deliver a profit of over GBP400,000 for the half year underpinned by cash flow from operations of a similar figure .

The analysis of income for the period is set out below:

 
                                             Half year   Year to 31 December 
                                            to 30 June                  2018 
                                                  2019 
                                                   GBP                   GBP 
                                          ------------  -------------------- 
 Investment income                                 549                   513 
                                          ------------  -------------------- 
 Net income from financial instruments 
  at FVTPL                                         127                 (929) 
                                          ------------  -------------------- 
 
 Total investment income                           676                 (416) 
                                          ------------  -------------------- 
 

This significantly improved level of total investment income in 2019 has been driven by the returns made from the Company's investment in RiverFort-generated opportunities. During this period, administration costs amounted to GBP252,000, which included fees payable to RiverFort Global Capital Limited for advisory services of GBP97,000, which are primarily linked to the generation of income, whilst keeping the fixed costs of the business to a minimum.

The key unaudited performance indicators are set out below:

 
Performance indicator                      30 June 2019   31 December    Change 
                                                                 2018 
-------------------------------------  ----------------  ------------  ---------- 
Investment income                            GBP549,000    GBP513,000 
-------------------------------------  ----------------  ------------  ---------- 
Net asset value                            GBP7,678,162  GBP7,254,727      +5.8% 
Net asset value - fully diluted per 
 share                                           0.113p        0.107p      +5.8% 
Closing share price                              0.076p        0.090p      -15.5% 
Net asset value premium to the share 
 price                                              49%           19% 
Market capitalisation                      GBP5,159,895  GBP6,110,000      -15.5% 
-------------------------------------  ----------------  ------------  ---------- 
 

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 trading at a very substantial discount to net asset value. This is against the background of a significant reduction in the risk profile of the Company's investment portfolio, where some 90% is represented by debt instruments and cash.

The Company's principal investment portfolio categories are summarised below:

 
 Category                   Cost or valuation at 30 
                                          June 2019 
 
 Debt and equity- linked 
  debt investments                        4,863,204    62.3% 
                           ------------------------  ------- 
 Equity investments                         649,056     8.3% 
                           ------------------------  ------- 
 Other                                      200,000     2.6% 
                           ------------------------  ------- 
 Cash resources                           2,090,220    26.8% 
                           ------------------------  ------- 
 
 Total                                    7,802,480   100.0% 
                           ------------------------  ------- 
 

The Company's net asset value has increased by 6% since the beginning of the year and the Company has continued to build its investment portfolio of RiverFort-arranged investments. Also, during the half year, the Company's equity portfolio has reduced as a result of disposals of equity holding and a fall in the share price of Plutus PowerGen plc offset by a further investment made in Pires Investments plc ("Pires"). The valuation of Pires is now very solidly underpinned by that company's cash resources and investment in Eco (Atlantic) Oil and Gas Limited. Further details about the Company's investment portfolio are set out on the Company's website at www.riverfortglobalopportunities.com.

As the Company continues to build its investment portfolio, it has been agreed with RiverFort that it will waive certain of its investment adviser fees for the first half 2019. In consideration for this, the Company has agreed to extend the current term of the investment adviser agreement with RiverFort by an additional six months. Under the AIM Rules, RiverFort, as the Company's investment adviser, is regarded as a Related Party so the variation of the investment agreement is a Related Party Transaction under the AIM Rules. To that end, the Independent Directors (being all the Directors with the exception of Mr Andrew Nesbitt who is a consultant to RiverFort) who have consulted with the Company's nomad, believe that this variation of the investment agreement is fair and reasonable in so far as the shareholders are concerned.

The Company is continuing to see a number of interesting investment opportunities where it can deploy its investment funds in order to make attractive returns. Furthermore, given the Company's ability to generate significant levels of investment income and profits, going forward, the Board is looking carefully at ways to enhance returns to shareholders that may include dividends and share buybacks.

Philip Haydn-Slater

Non-Executive Chairman

11 September 2019

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For more information, please contact:

   RiverFort Global Opportunities plc:                                            +44 (0) 20 3368 8978 

Philip Haydn-Slater, Non-Executive Chairman

Nicholas Lee, Investment Director

Nominated Adviser:

Beaumont Cornish +44 (0) 20 7628 3396

Roland Cornish/Felicity Geidt

Joint Broker: +44 (0) 20 7601 6100

Shard Partners LLP

Damon Heath/Erik Woolgar

Joint Broker: +44 (0) 20 7562 3351

Peterhouse Capital Limited

Lucy Williams

UNAUDITED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHSED 30 JUNE 2019

 
                                         Unaudited        Unaudited 
                                          6 months         6 months         Audited 
                                             ended            ended      Year ended 
                                           30 June          30 June     31 December 
                                              2019             2018            2018 
                                               GBP              GBP             GBP 
----------------------------------  --------------  ---------------  -------------- 
 
Net gain/(loss) from financial 
 instruments at FVTPL                      126,670        (110,119)       (965,228) 
 
Investment income                          549,137          169,759         512,743 
 
Total income                               675,807           59,640       (452,485) 
 
Administration expenses                  (252,372)        (157,122)       (278,707) 
 
Profit/(loss) before taxation              423,435         (97,482)       (731,192) 
 
Taxation                                         -                -               - 
----------------------------------  --------------  ---------------  -------------- 
 
Profit/(loss) for the period and 
 total comprehensive income                423,435         (97,482)       (731,192) 
 
 
Basic earnings/(loss) per share 
Continuing and total operations             0.006p         (0.005)p        (0.018)p 
----------------------------------  --------------  ---------------  -------------- 
 
Fully diluted earnings/(loss) per 
 share 
Continuing and total operations             0.006p         (0.005)p        (0.018)p 
----------------------------------  --------------  ---------------  -------------- 
 

UNAUDITED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHSED 30 JUNE 2019

 
                                 Called 
                                     up 
                                  share   Share premium                       Retained       Total 
                                capital         account   Other reserves       deficit      equity 
                                    GBP             GBP              GBP           GBP         GBP 
--------------------------  -----------  --------------  ---------------  ------------  ---------- 
 
 Balance at 
  1 January 2018              4,269,546       3,191,257          100,150   (5,112,184)   2,448,769 
 Loss for the year and 
  total comprehensive 
  expense                             -               -                -     (731,192)   (731,192) 
--------------------------  -----------  --------------  ---------------  ------------  ---------- 
 Share option reserve 
  transfer following 
  cancellation of options             -               -         (73,150)        73,150           - 
 Share issues                 5,772,727          77,273                -             -   5,850,000 
 Share issue expenses                          (77,273)                -     (235,577)   (312,850) 
--------------------------  -----------  --------------  ---------------  ------------  ---------- 
 Transactions with owners     5,772,727               -                -     (235,577)   5,537,150 
--------------------------  -----------  --------------  ---------------  ------------  ---------- 
 
 Balance at 
  31 December 2018           10,042,273       3,191,257           27,000   (6,005,803)   7,254,727 
 Profit for the period 
  and total comprehensive 
  income                              -               -                -       423,435     423,435 
--------------------------  -----------  --------------  ---------------  ------------  ---------- 
 
 Balance at 
  30 June 2019                9,542,273       3,191,257           27,000   (5,582,368)   7,678,162 
--------------------------  -----------  --------------  ---------------  ------------  ---------- 
 

UNAUDITED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2019

 
                                Unaudited    Unaudited 
                                 6 months     6 months           Audited 
                                    ended        ended        Year ended 
                                  30 June      30 June       31 December 
                                     2019         2018              2018 
                                      GBP          GBP               GBP 
----------------------------  -----------  -----------  ---------------- 
 
ASSETS 
Non-current investments 
Financial asset investments       883,588            -         1,540,456 
----------------------------  -----------  -----------  ---------------- 
Total non-current assets          883,588            -         1,540,456 
----------------------------  -----------  -----------  ---------------- 
Current assets 
Financial asset investments     4,828,672    2,494,958         2,253,259 
Trade and other receivables       242,096    4,424,824           206,107 
Cash and cash equivalents       2,090,220      871,452         3,597,734 
----------------------------  -----------  -----------  ---------------- 
Total current assets            7,160,988    7,791,234         6,057,100 
----------------------------  -----------  -----------  ---------------- 
 
Total assets                    8,044,576    7,791,234         7,597,556 
----------------------------  -----------  -----------  ---------------- 
 
LIABILITIES 
Current liabilities 
Trade and other payables          273,516      374,797           307,013 
Other financial liabilities        92,898            -            35,816 
Total current liabilities         366,414      374,797           342,829 
----------------------------  -----------  -----------  ---------------- 
 
Net assets                      7,678,162    7,416,437         7,254,727 
----------------------------  -----------  -----------  ---------------- 
 
EQUITY 
Share capital                  10,042,273    9,542,273        10,042,273 
Share premium account           3,191,257    3,191,257         3,191,257 
Capital redemption reserve         27,000       27,000            27,000 
Share option reserve                    -       73,150                 - 
Retained losses               (5,582,368)  (5,417,243)       (6,005,803) 
----------------------------  -----------  -----------  ---------------- 
 
Total equity                    7,678,162    7,416,437         7,254,727 
----------------------------  -----------  -----------  ---------------- 
 
 

UNAUDITED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHSED 30 JUNE 2019

 
                                               Unaudited       Unaudited 
                                                6 months        6 months           Audited 
                                                   ended           ended        Year ended 
                                                 30 June         30 June       31 December 
                                                    2019            2018              2018 
                                                     GBP             GBP               GBP 
--------------------------------------  ----------------  --------------  ---------------- 
 
Cash flows from operating activities 
Investment income received                       518,743          78,904           332,664 
Operating expenses paid                        (101,869)       (122,319)         (277,396) 
--------------------------------------  ----------------  --------------  ---------------- 
Net cash inflow/(outflow) from 
 operating activities                            416,874        (43,415)            55,268 
--------------------------------------  ----------------  --------------  ---------------- 
 
Cash flows from investing activities 
Purchase of investments                      (3,032,776)       (318,424)       (3,204,994) 
Proceeds from disposal of investments             69,678         256,496           783,975 
Debt instrument repayments                     1,097,132               -           193,211 
Net payments on forward exchange 
 contracts                                      (65,899)               -                 - 
Net cash used in investing activities        (1,931,865)        (61,928)       (2,227,808) 
--------------------------------------  ----------------  --------------  ---------------- 
 
Financing activities 
Net proceeds of share issues                           -         765,000         5,537,150 
--------------------------------------  ----------------  --------------  ---------------- 
Net cash from financing activities                     -         765,000         5,537,150 
--------------------------------------  ----------------  --------------  ---------------- 
 
Net (decrease)/increase in cash 
 and cash equivalents                        (1,514,991)         659,657         3,364,610 
Cash and cash equivalents at 
 beginning of period                           3,597,734         211,795           211,795 
Effect of foreign currency exchange 
 on cash                                           7,477               -            21,329 
--------------------------------------  ----------------  --------------  ---------------- 
 
Cash and cash equivalents at 
 end of period                                 2,090,220         871,452         3,597,734 
--------------------------------------  ----------------  --------------  ---------------- 
 
 

NOTES TO THE INTERIM REPORT

1. The financial information set out in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The group's statutory financial statements for the period ended 31 December 2018, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The interim financial information has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) and on the same basis and using the same accounting policies as used in the financial statements for the year ended 31 December 2018. The interim financial statements have not been audited or reviewed in accordance with the International Standard on Review Engagement 2410 issued by the Auditing Practices Board.

The financial statements have been prepared on a going concern basis under the historical cost convention.

The Directors believe that the going concern basis is appropriate for the preparation of the financial statements as the Company is in a position to meet all its liabilities as they fall due.

   2.         Earnings per share 

Earnings per share is calculated by dividing the profit/(loss) attributable to equity shareholders by the weighted average number of shares in issue.

 
 
                                            Six months      Six months      Year ended 
                                                 ended           ended 
                                               30 June         30 June     31 December 
                                                  2019            2018            2018 
                                           (unaudited)     (unaudited)       (audited) 
--------------------------------------  --------------  --------------  -------------- 
 
 Weighted average number of shares 
  in the period                          6,789,335,226   1,811,936,934   4,152,597,991 
--------------------------------------  --------------  --------------  -------------- 
 
   Profit/(Loss) from continuing 
   and total operations                     GBP423,435      (GBP97,482    (GBP731,192) 
--------------------------------------  --------------  --------------  -------------- 
 
   Basic and fully diluted earnings 
   per share: 
 From continuing and total operations           0.006p        (0.005)p        (0.018)p 
 There are no share options or warrants outstanding that would 
  be dilutive for earnings per share, so the weighted average 
  number of shares in issue is the same for both basic and fully 
  diluted earnings per share calculations. 
 
   3.         No interim dividend will be paid. 

4. Copies of the interim report can be obtained from: The Company Secretary, RiverFort Global Opportunities plc, Suite 12a, 55 Park Lane, London, W1K 1NA and are available to view and download from the Company's website : www.riverfortglobalopportunities.com

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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