Last checked at 15 Nov 2019 07:00
15 November 2019
RiverFort Global Opportunities plc
("RGO" or the "Company")
Quarterly update to 30 September 2019
Further to the announcement of 31 October 2019, RiverFort Global Opportunities plc is pleased to provide a detailed quarterly update for Q3 to 30 September 2019.
Highlights
·; Total income generated in Q3 of £252,000, making a total of £919,000 for the first nine months of 2019
·; Increase in net asset value since 30 June 2019 of around 3%, or almost 9% over the first 9 months of 2019
·; NAV per share is at a 55% premium to the period end share price
·; £2.2 million of cash available for further investment
·; Very busy Q3 and start to Q4 with additional investments made in companies including Savannah Petroleum plc, Anglo African Oil & Gas plc, UK Oil and Gas plc, Infrastrata plc, Angus Energy plc and Ascent Resources plc
·; Continued strong demand for the Company's investment capital
Chairman's review
The Company has had a very busy Q3 and start to Q4 and has continued to build on its excellent 2019 interim results. Further good progress has been made in Q3 2019, with the Company providing capital to a number of companies for a variety of uses including for working capital purposes and acquisitions. These companies include some larger listed companies such as Savannah Petroleum plc and UK Oil & Gas plc. The majority of our total investment income is now being generated from this type of investment.
The analysis of income for the period is set out below:
Q3 to 30 September 2019 | Half year to 30 June 2019 | ||
£ | £ | ||
Investment income | 234 | 549 | |
Net income from financial instruments at FVTPL | 18 | 127 | |
Total investment income | 252 | 676 |
Total investment income of £252,000 was generated in the three months to 30 September 2019, making a total of £919,000 for the first nine months of 2019.
The key unaudited performance indicators are set out below:
Performance indicator | 30 September 2019 | 30 June 2019 | Change |
Investment income | £252,000 | £549,000 | |
Net asset value | £7,869,823 | £7,678,162 | +2.6% |
Net asset value - fully diluted per share | 0.116p | 0.113p | +2.6% |
Closing share price | 0.075p | 0.076p | -1.3% |
Net asset value premium to the share price | 55% | 49% | |
Market capitalisation | £5,092,001 | £5,159,895 | -1.3% |
The Company's net asset value has increased by 9% since the beginning of the year and the Company has continued to build its investment portfolio of RiverFort-arranged investments. Further details about the Company's investment portfolio are set out on the Company's website at www.riverfortglobalopportunities.com.
The Company's principal investment portfolio categories are summarised below:
Category | Cost or valuation at 30 September 2019 |
Debt and equity-linked debt investments | 4,709,792 |
Equity investments | 630,605 |
Other | 200,000 |
Cash resources | 2,166,906 |
Total | 7,707,303 |
Despite increasing net asset value and generating a significant level of investment income, the Company's shares continue to trade at a very substantial discount to net asset value. As mentioned in our interim results, the Board is working on ways to enhance returns to shareholders that will, most likely, include the payment of a dividend which, we believe, will help reduce the trading discount to net asset value.
As the Company continues to build its investment portfolio and investment income, it has been agreed with RiverFort, the Company's investment adviser, that they will waive their annual retainer fees, equivalent to two per cent. of the Company's net assets, and performance fees, equivalent to 20 per cent. of the realised profits generated on each new investment, for the second half 2019. In consideration for this, the Company has agreed to extend the current term of the investment adviser agreement with RiverFort by an additional six months to 30 June 2022. Under the AIM Rules, RiverFort, as the Company's investment adviser, is regarded as a Related Party so the variation of the investment agreement is a Related Party Transaction under the AIM Rules. To that end, the Independent Directors (being all the Directors with the exception of Mr Andrew Nesbitt who is a consultant to RiverFort) who have consulted with the Company's nomad, believe that this variation of the investment agreement is fair and reasonable in so far as the shareholders are concerned.
There continues to be a good demand for the Company's investment capital in situations that can generate attractive returns and we have the necessary cash resources to deploy in order to benefit from these opportunities. Furthermore, the Company is now starting to build a track record of delivering significant levels of investment income and building net asset value.
Philip Haydn-Slater
Non-Executive Chairman
15 November 2019
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
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