TIDMRGO
RNS Number : 8105N
RiverFort Global Opportunities PLC
27 September 2023
RiverFort Global Opportunities plc
("RGO" or the "Company")
Unaudited interim results for the 6 months ended 30 June
2023
RiverFort Global Opportunities plc is pleased to announce its
unaudited interim results for the six months to 30 June 2023.
Highlights
-- Total NAV of GBP 10.2 million as at 30 June 2023
-- NAV per share of 1.30 pence compared to the current share price of 0.59 pence
-- Smarttech247 is progressing well as a listed company
-- Around GBP2.4 million of net cash available for further investment
Philip Haydn-Slater, Non-Executive Chairman, commented:
"Given the difficult market conditions of 2022 continuing into
2023, RGO has continued to accumulate and preserve cash during the
period such that at the period end the Company had a cash balance
of GBP2.4 million. This strategy has, however, resulted in a
reduction in investment income, although at the same time, the
Company has broadly maintained its NAV against this background of
difficult markets. In particular, Smarttech247 is progressing well
as a listed company which has been reflected in an increase in its
share price during the period. However, notwithstanding this and
the maintenance of its NAV, disappointingly, the Company's current
shares are trading at a 55% discount to its underlying NAV.
Post period end both in response to attractive investment
opportunities and significant demand for the Company's capital, a
number of new investments have been made which, going forward, we
believe will generate attractive returns whilst offering downside
protection. We believe that this combination continues to be an
attractive investment strategy in current markets."
Chairman's statement
The analysis of income for the period is set out below:
Half year Year to
to 30 June 31 December
2023 2022
GBP000 GBP000
------------ -------------
Investment income 215 1,167
Net income from financial instruments
at FVTPL (141) (1,450)
Net foreign exchange gains/(losses)
on financial instruments (106) 90
Total investment income (32) (193)
------------ -------------
During the period, the Company generated total investment income
of GBP215,000 from its investment portfolio. The Company
principally invests by way of debt and/or equity-linked instruments
which provides equity upside with downside protection. Investment
income is therefore principally generated from interest, fees, with
additional income from equity conversion and warrants. Net income
from financial instruments at FVTPL is derived from changes in the
value of the Company's investment portfolio.
The Company's principal investment portfolio categories are
summarised below:
Category Cost or valuation Cost or valuation
at at
30 June 2023 31 December
2022
(GBP000) (GBP000)
Debt and equity- linked debt
investments 2,482 3,612
Pre IPO investments 1,067 3,427
Equity and other investments 3,277 1,067
Cash resources 2,420 958
Total 9,246 9,064
------------------- -------------------
During the period, the Company has focused on recovering cash
from its debt and equity linked portfolio. This portfolio currently
includes over 20 companies, with principal investments in companies
such as Jubilee Metals plc, Gaussin SA, Kibo Energy plc and Valoe
Corp Oyj. Since the period end, investments have been made in
companies including Gaussin SA, UK Oil and Gas plc, Cadence
Minerals plc and Sareum Holdings plc.
The pre-IPO investment category now principally comprises the
Company's holding in Emergent Entertainment ("Emergent") as
Smarttech247 Group plc ("Smarttech247") was successfully listed on
AIM in December 2022 and is now included in the equity and other
investments category.
During the period, Emergent signed an LOI to secure development
funding to develop a new game and is also in discussions on other
projects. The launch of the VR game, Peaky Blinders, was positively
received and further work is underway to increase sales. The
company has agreed terms with a massive multiplayer roleplaying
game developer to fast track the development of its Web3 game,
Resurgence, which is expected to reduce development times by 12
months. The management team is also working on various initiatives
to reduce the company's cost base and it expects 2023 revenues to
be significantly ahead of the previous year.
The equity and other investments category principally comprises
the Company's holdings in Smarttech247, Pires and its warrant
portfolio.
Smarttech247 (AIM: S247) is an established global artificial
intelligence-based cybersecurity business, specialising in
automated managed detection and response. It has a successful track
record of revenue growth and profitability and is positioned at the
intersection of three major cyber security growth markets: security
threat incidents, growth of cloud adoption and proliferation of
cyber security data generation that needs to be integrated.
Recent full year and interim results of Smarttech247, along with
some significant new contract wins have reinforced the company's
growth trajectory. In May 2021, the Company invested EUR1.4 million
in Smarttech247 to help fund its expansion and development. As at
the period end, this holding was worth GBP2.4 million representing
a significant uplift on investment.
Pires, is a company listed on AIM that invests in next
generation technology companies with a focus on AI. Pires is
continuing to build an attractive investment portfolio and,
notwithstanding difficult markets for technology companies, has
managed to maintain the value of its portfolio during the period.
At the same time, a number its portfolio companies have been able
to successfully raise new funds during the period demonstrating the
quality of its portfolio. Further details can be found on the
company's website which is www.piresinvestmentsplc.com.
As previously announced, as part of the Company's overall
strategy when making investments, warrants or their equivalent are
negotiated which can significantly increase the level of investment
return . However, due to the inherent volatility associated with
this form of instrument, the potential value of this warrant
portfolio is not fully reflected in the Company's net asset value
and a return is only crystallised when the respective warrants are
exercised and resulting shares sold.
The key unaudited performance indicators are set out below:
Performance indicator 30 June 31 December Change
2023 2022
------------------------------------ ------------------ ------------- ----------
Investment income GBP215,035 GBP1,167,379
------------------------------------ ------------------ ------------- ----------
Net asset value GBP 10,164,956 GBP10,587,738 -4.0%
Net asset value - fully diluted per
share 1.30p 1.35p -3.7%
Closing share price 0.63p 0.75p -16.7%
Market capitalisation GBP4,846,000 GBP5,816,000 -16.7%
------------------------------------ ------------------ ------------- ----------
The Company's overall net asset position has reduced slightly
during the period. The decrease in the value of the Pires
investment partially offset by the increase in the value of the
Company's holding in Smarttech247 and the lower level of investment
income was offset by administration and advisory costs. As referred
to above, the Company has continued to grow its cash balance during
the period and is now well positioned to focus on making new
investments as attractive opportunities arise .
Philip Haydn-Slater
Non-Executive Chairman
27 September 2023
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
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 2023
Unaudited Unaudited
6 months 6 months Audited
ended ended Year ended
30 June 30 June 31 December
2023 2022 2022
GBP GBP GBP
-------------------------------------------- -------------- -------------- ----------------
Investment income 215,035 417,476 1,167,379
Net loss from financial instruments
at FVTPL (140,753) (440,460) (1,449,703)
Foreign exchange (losses)/gains on
financial
instruments (106,529) 103,689 89,703
Total income (32,247) 80,705 (192,621)
Administration expenses (173,245) (170,371) (318,933)
Investment advisory fees (151,565) (214,879) (413,746)
Exchange translation (losses)/gains (65,725) 22,249 58,870
Loss before taxation (422,782) (282,296) (866,430)
Taxation - - -
-------------------------------------------- -------------- -------------- ----------------
Loss for the period and total comprehensive
expense (422,782) (282,296) (866,430)
Basic loss per share
Continuing and total operations (0.05p) (0.04p) (0.11p)
-------------------------------------------- -------------- -------------- ----------------
Fully diluted loss per share
Continuing and total operations (0.05p) (0.04p) (0.11p)
-------------------------------------------- -------------- -------------- ----------------
UNAUDITED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
Unaudited Unaudited
6 months 6 months Audited
ended ended Year ended
30 June 30 June 31 December
2023 2022 2022
GBP GBP GBP
---------------------------- ---------- ---------- ---------------
ASSETS
Non-current investments
Financial asset investments 5,545,225 7,434,772 5,962,814
---------------------------- ---------- ---------- ---------------
Total non-current assets 5,545,225 7,434,772 5,962,814
---------------------------- ---------- ---------- ---------------
Current assets
Financial asset investments 1,280,498 2,456,686 2,152,879
Trade and other receivables 1,444,766 299,102 1,854,870
Cash and cash equivalents 2,419,917 1,718,844 958,135
---------------------------- ---------- ---------- ---------------
Total current assets 5,145,181 4,474,632 4,965,884
---------------------------- ---------- ---------- ---------------
Total assets 10,690,406 11,909,404 10,918,698
---------------------------- ---------- ---------- ---------------
LIABILITIES
Current liabilities
Trade and other payables 525,450 442,879 330,960
Total current liabilities 525,450 442,879 330,960
---------------------------- ---------- ---------- ---------------
Net assets 10,164,956 11,466,525 10,587,738
---------------------------- ---------- ---------- ---------------
EQUITY
Share capital 77,540 77,540 77,540
Share premium account 1,568,353 1,568,353 1,568,353
Share options reserve 201,034 201,034 201,034
Retained earnings 8,318,029 9,619,598 8,740,811
---------------------------- ---------- ---------- ---------------
Total equity 10,164,956 11,466,525 10,587,738
---------------------------- ---------- ---------- ---------------
UNAUDITED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2023
Called
up Share Share
share premium options Retained Total
capital account reserve earnings equity
GBP GBP GBP GBP GBP
-------------------------- --------- ---------- --------- ----------- -----------
Balance at
1 January 2022 77,540 1,568,353 201,034 9,901,894 11,748,821
Loss for the year and
total comprehensive
expense - - - (866,430) (866,430)
-------------------------- --------- ---------- --------- ----------- -----------
Dividend payment - - - (294,653) (294,653)
Balance at
31 December 2022 77,540 1,568,353 201,034 8,740,811 10,587,738
Loss for the period
and total comprehensive
expense - - - (422,782) (422,782)
-------------------------- --------- ---------- --------- ----------- -----------
Balance at
30 June 2023 77,540 1,568,353 201,034 8,318,029 10,164,956
-------------------------- --------- ---------- --------- ----------- -----------
UNAUDITED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2023
Unaudited Unaudited
6 months 6 months Audited
ended ended Year ended
30 June 30 June 31 December
2023 2022 2022
GBP GBP GBP
--------------------------------------- -------------- ---------------- ----------------
Cash flows from operating activities
Investment income received 401,514 43,938 500,099
Operating expenses paid (146,885) (244,386) (1,026,445)
--------------------------------------- -------------- ---------------- ----------------
Net cash inflow/(outflow) from
operating activities 254,629 (200,448) (526,346)
--------------------------------------- -------------- ---------------- ----------------
Cash flows from investing activities
Purchase of investments (808,089) (2,807,144) (5,384,144)
Proceeds from disposal of investments - 27,316 27,316
Debt instrument repayments 2,059,394 2,582,948 5,033,776
Net cash from/(used in) investing
activities 1,251,305 (196,880) (323,052)
--------------------------------------- -------------- ---------------- ----------------
FINANCING ACTIVITIES
Dividend payment - - (294,653)
--------------------------------------- -------------- ---------------- ----------------
Net cash used in financing activities - - (294,653)
--------------------------------------- -------------- ---------------- ----------------
Net increase/(decrease) in cash
and cash equivalents 1,505,934 (397,328) (1,144,051)
Cash and cash equivalents at beginning
of period 958,135 2,012,483 2,012,483
Effect of foreign currency exchange
on cash (44,152) 103,689 89,703
--------------------------------------- -------------- ---------------- ----------------
Cash and cash equivalents at end
of period 2,419,917 1,718,844 958,135
--------------------------------------- -------------- ---------------- ----------------
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 2022, 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 2022. 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
2023 2022 2022
(unaudited) (unaudited) (audited)
------------------------------------------- -------------- -------------- --------------
(Loss)/profit from continuing
and total operations (GBP422,782) (GBP282,296) (GBP866,430)
------------------------------------------- -------------- -------------- --------------
Weighted average number of shares
in the period for basic earnings 775,404,187 775,404,187 775,404,187
Weighted average number of shares
in the period for fully diluted
earnings 775,404,187 775,404,187 775,404,187
------------------------------------------- -------------- -------------- --------------
Basic and fully diluted (loss)/earnings
per share:
Basic (loss)/earnings per share
from continuing and total operations (0.05p) (0.04p) 0.11p
Fully diluted (loss)/earnings
per share from continuing and
total operations (0.05p) (0.04p) 0.11p
For the current period exercise of the outstanding warrants
would be anti-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. Copies of the interim report can be obtained from: The
Company Secretary, RiverFort Global Opportunities plc, Suite 39, 18
High Street, High Wycombe, Buckinghamshire, HP10 8NJ and are
available to view and download from the Company's website :
www.riverfortglobalopportunities.com
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