19 Aug 2011 13:00
City of London Group plc ("COLG" or "the Company")
Interim Management Statement
The Company is pleased to announce as follows its Interim Management Statement covering the period from 1 April 2011 to the date of this announcement
Highlights
− Our investment portfolio shows strong resilience against falling markets
− Unaudited Net Asset Value per share as at 31 July 2011 stands at 74.8p per share (31 July 2010 -71.0p)
− COLG has made significant progress in developing its strategy as its third investment platform, (CAML), starts writing business
In the four and a half months between 1 April 2011 and the date of this announcement, stock markets have again been extremely volatile, with the continuing threat of a double-dip recession. Our investment strategy, to move a number of our existing holdings into alternative fund management and specialist financing opportunities, is proving to be sound. This makes us much less dependent on the stock markets to grow shareholder value.
During this period we have seen our third investment platform, Credit Asset Management Limited (CAML), begin to attract banking lines and start writing business from 1 July. The business is seeing strong demand at attractive rates from companies who are good credits, and CAML continues to hold discussions with a number of major banks and other institutions for additional credit lines and funds under management.
The Company's litigation funding business, Therium, has yet to see any major cases win or settle but a number of significant cases are coming to fruition. The Company is well advanced in raising its third partnership fund to support the strong pipeline of cases coming forward for funding.
Our Trade Finance business, (TFPL), is building a strong reputation in that market and has drawn down the second tranche of its funding line from Bank of London and the Middle East. More recently, it has secured a major new client within the drinks industry, where we have initially funded £1million to start that trade line.
We have also agreed a new bank overdraft facility with Lloyds Banking Group for £1.6 m, an increase from £1.2 m on the previous facility.
Our Chief Finance Officer, Graham White is due to retire at the end of this calendar year and a search is underway for a Finance Director who will join the Board. At the same time we are undertaking a formal search for two additional non-executive directors.
The Chairman will comment further on our prospects and plans for the future at our AGM fixed on 8 September 2011.
First six months results to 30 September 2011 are expected to be announced on 30 November 2011.
19 August 2011
Enquiries:
City of London Group | 020 7628 5518 |
Eric Anstee, Chief Executive | |
Singer Capital Markets | 020 3205 7500 |
Jeff Keating | |
Jonathan Marren | |
College Hill | 020 7457 2020 |
Tony Friend | |
Antonia Coad |