TIDMRGO
RNS Number : 0400P
RiverFort Global Opportunities PLC
05 June 2020
5 June 2020
RiverFort Global Opportunities plc
("RGO" or the "Company")
Quarterly update to 31 March 2020
RiverFort Global Opportunities plc is pleased to provide a
detailed quarterly update for Q1 2020 for the quarter to 31 March
2020.
Highlights
-- Investment income generated in Q1 2020 of GBP203,000
-- Net asset value maintained
-- Focus on cash recovery from investments
-- Successful implementation of capital reorganisation and reduction
-- Significant cash balance available for further investment
Chairman's review
The Company has continued to generate a good level of investment
income from its investment portfolio. It has also made some new
investments during Q1 2020 in companies such as Westminster Group
plc and Red T plc . However, given the uncertainty created by the
Covid-19 pandemic, the Company has held back on the level of
capital deployment and has focused more on recovering cash from its
investments in order to reduce the level of risk within its
investment portfolio. This has been achieved successfully and so,
as a result, the Company has increased its cash balance over the
period.
The analysis of income for the period is set out below:
Q1 to 31 Full year
March 2020 to 31 December
2019
GBP GBP
------------ ----------------
Investment income 203 889
------------ ----------------
Net income/loss from financial instruments
at FVTPL (202) 128
------------ ----------------
Net foreign exchange gains/(losses)
on other financial instruments 65 (69)
------------ ----------------
Total investment income 66 948
------------ ----------------
The net income from financial instruments at FVTPL for Q1
amounted to a loss which was principally due to a reduction in the
Pires Investments plc share price over the first quarter. However,
since the period end this reduction has already reversed given the
good progress currently being made by this company.
The key unaudited performance indicators are set out below:
Performance indicator 31 March 2020 31 December Change
2019
------------------------------------- ---------------- ------------- ----------
Total investment income GBP66,000 GBP948,000
------------------------------------- ---------------- ------------- ----------
Net asset value GBP7,836,031 GBP 7,878,417 -0.5%
Net asset value - fully diluted per
share 1.15p 1.16p -0.5%
Closing share price 0.55p 0.75p -26.7%
Net asset value premium to the share
price 109% 55%
Market capitalisation GBP3,734,134 GBP5,092,000 -26.7%
------------------------------------- ---------------- ------------- ----------
The above table is based on the Company's figures post the
implementation of the 10 for 1 share consolidation as part of the
capital reduction that became effective during the second quarter
of 2020. The figures as at 31 December 2019 have therefore been
adjusted accordingly.
The recent stock market turmoil during March and April 2020 as a
result of the Covid-19 pandemic, adversely affected the Company's
period end share price, however, this has now recovered to the
levels seen at the end of last year. Notwithstanding this
situation, the Company's net asset value has held up well over this
period.
The Company's principal investment portfolio categories are
summarised below:
Category Cost or valuation
at 31 March 2020
Debt and equity-linked debt
investments 3,606,221
------------------
Equity and other investments 643,525
------------------
Cash resources 2,760,431
------------------
Total 7,010,177
------------------
Given the reduced level of capital deployment as discussed
above, it has been agreed with RiverFort Global Capital Limited
("RiverFort"), the Company's investment adviser, that they will
waive their annual retainer fees, equivalent to two per cent. of
the Company's net assets, and performance fees, equivalent to 20
per cent. of the realised profits generated on each new investment,
for the first half of 2020. 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 to 31 December
2022. 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
Nominated Adviser, believe that this variation of the investment
agreement is fair and reasonable in so far as the shareholders are
concerned.
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. As the outlook becomes clearer, the Company will begin
to deploy more capital.
Philip Haydn-Slater
Non-Executive Chairman
5 June 2020
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
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END
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