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
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END
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