(Alliance News) - Adams PLC on Wednesday saw strong growth in net asset value in financial 2019 and maintained its confidence in its investment portfolio despite "ongoing trade tensions" and the world economy "losing momentum".
At March 31, the AIM-listed investment company's NAV per share stood at 2.87 pence, compared to 2.55p at the same point a year prior - a rise of 13%.
The company's net assets increased 14% in the same period, rising to GBP2.4 million from GBP2.1 million.
Adams reported pretax profit of GBP257,000 for the period, 43% higher compared to GBP180,000 a year before. The company said the increase in profit was driven by gains on the valuation of its investments.
Adams saw an investment return of GBP404,000 in the period, 24% higher than the GBP325,000 seen the year before.
At March 31, the investment company's portfolio comprised of investments in London-listed Petrofac Ltd, Eland Oil & Gas PLC and Midatech Pharma PLC. Also, Adams held shares and loan notes in unquoted Sherwood Holdings Ltd. Sherwood's principal subsidiary is Source Bioscience Ltd, a laboratory services and products provider.
The carrying value of Adams' portfolio was GBP2.1 million at year-end, flat on the year before.
Chair Michael Bretherton said: "Expansion of the world economy is continuing to lose momentum and growth forecasts have been revised downwards in almost all G20 economies, with particularly large revisions in the euro area for both 2019 and 2020. Ongoing trade tensions between the US and China, Brexit uncertainties and a further erosion of business and consumer confidence are all contributing to the slowdown. Consequently, your board will continue to maintain a rigorous and highly selective investment approach, coupled with a focus on financial discipline, as the best strategy to navigate these challenging markets and the uncertain global climate."
He added: "We remain confident in the underlying fundamentals, technologies and long-term potential for growth at the companies within our investment portfolio and are committed to delivering additional value for shareholders going forward."
Shares in Adams were untraded Wednesday in London but last closed at 4.50 pence each.
Adams (ADA)