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(Alliance News) - Hipgnosis Songs Fund Ltd on Friday posted a significant improvement in its results for financial 2020 and expressed confidence in its outlook, noting an increased amount of music streaming during the Covid-19 lockdown period.
Shares in the music catalogue investment firm closed 0.7% higher at 117.00 pence each on Friday in London and are up 7.3% since the start of the year.
For the year ended March 31, the company's pretax profit was GBP32.7 million on total revenue of GBP65.7 million. For comparison, for the period from its incorporation on June 8, 2018, to the end of March 2019, pretax profit was GBP3.0 million from total income of GBP8.0 million.
Net asset value per share was 100.91p, up from 98.21p at the same time in 2019. Its portfolio was valued at GBP757 million, up 11% year-on-year.
During the year, Hipgnosis invested GBP560 million through the acquisition of 42 catalogues which included songs by Amy Winehouse, Justin Timberlake, Cher, Adele and Bon Jovi.
A first interim dividend of 1.25 pence per share was declared.
Turning to current events, Chair Andrew Sutch said: "The music industry is not immune to the impact of the pandemic, with performance and live entertainment in particular having been materially disrupted during the immediate period of lockdown. However, people listen to music in good times and bad and the streaming of music has increased noticeably during the lockdown period. The company benefits from investing in an asset class which can thrive when other sectors and markets are suffering and I am confident that this can continue to be the case over the coming year."
By Ife Taiwo; ifetaiwo@alliancenews.com.
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