(Alliance News) - Adams PLC on Thursday said it swung to a pretax loss for the first half of financial 2020 due to a "challenging period," which also resulted in lower investment returns.
The biotechnology and life science sector-focused investment company recorded a pretax loss of GBP46,000 for the six months to September 30, compared with pretax profit of GBP517,000 in the year ago period. Investment returns declined to GBP23,000 from GBP598,000.
Adams spent GBP559,000 on three new equity investments in the six month period and generated cash proceeds of GBP579,000 from the realisation of its investment in Midatech Pharma PLC.
As at September 30, Adams held six investments and for which the total investment carrying value was GBP2.0 million, versus GBP2.1 million at March 31.
"There is continued reason for investment caution in the near term, given that the global economy is slowing down as reflected by falling GDP output in the US and China, coupled with near recession conditions in Germany, Italy and the UK. We will, therefore, continue to maintain a rigorous and highly selective investment approach with a view to exploiting opportunities as they emerge and we are confident that this approach will enable us to build considerable value for shareholders going forward," said Chair Michael Bretherton.
Adams shares were untraded at 5.00 pence each in London on Thursday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Adams (ADA)