RiverFort Global
Opportunities plc
("RGO" or the
"Company")
Trading
Update
The second half of 2023 has been a
difficult trading period for RiverFort Global Opportunities plc
(AIM: RGO), with a number of events taking place that have impacted
the value of its investment portfolio.
Equity and pre-IPO investments
On 20 December 2023, the Company
announced that it had been informed by one of its investee
company's, Emergent Entertainment Ltd ("Emergent"), that Emergent
was engaging with insolvency advisers and is anticipated to be
shortly placed into liquidation. Consequently, this
investment has now been provided for in full.
Since the Company's interim results
for the period to 30 June 2023, which were announced on 27
September 2023 ("Interims"), two of the Company's listed
investments, Mindflair plc (formerly Pires Investments plc) and
Smarttech247 Group plc have experienced significant decreases in
their share prices to 31 December 2023. More recently,
however, Smarttech247 Group plc reported positive results on 29
January 2024, and Mindflair plc, whilst having previously made a
similar announcement as set out above regarding its investment in
Emergent, has also successfully raised new funds in order to fund
its investment strategy.
Debt and equity linked investments
In terms of this portfolio, one of
the Company's investments, Valoe OYJ, a Finnish company
specialising in photovoltaic technology, entered into restructuring
proceedings in Finland on 22 January 2024. It is not clear,
at this stage, what value can be recovered from this investment and
so it is envisaged that the Company will provide in full for this
investment.
Furthermore, Gaussin SA, a
technology company that designs and assembles zero emission smart
vehicles has just announced that it expects to report a significant
shortfall in sales for 2023 putting further pressure on its share
price and liquidity which may impact the recoverability of the
investment made in this company.
The portfolio is currently being
reviewed and further provisions may be required against other
investments which would then need to be reflected in the valuation
of the Company's portfolio at the period end.
Pro
forma impact on NAV
Subject to any further provisions
that may be required, the effect of the matters referred to above
would have been to reduce the Company's NAV of 1.3 p per share as
reported in the Interims to 1.0p on a pro forma basis. However, the
Company is still trading at a significant discount to this pro
forma net asset figure.
Philip Haydn Slater, Chairman,
said:
"We are disappointed with how some
of our investments have performed in recent months, which has
clearly been exacerbated by the general difficulties in financial
markets and the economy as a whole. Against this background, RGO
has continued to continue to maintain a prudent cash
balance.
More generally, small investment
companies listed on AIM have become increasingly less attractive to
investors therefore the Board is in the process of reviewing
various options for the Company to provide better value and returns
for its shareholders. The Company expects to make a further
announcement in this regard in due course."
The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").
Enquiries:
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RGO
plc
Philip Haydn Slater,
Chairman
Nicholas Lee, Director
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Tel: +44 (0) 20 3368 8978
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Nominated Adviser
Beaumont Cornish
Roland Cornish
Felicity Geidt
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Tel: +44 (0) 20 7628 3396
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Joint Broker
Peterhouse Capital Limited
Duncan Vasey/Lucy Williams
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Tel: +44 (0) 20 7469 0935
Tel: +44 (0) 20 7469 0936
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Joint Broker
Shard Capital Partners LLP
Damon Heath/Erik Woolgar
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Tel: +44 (0) 20 7186 9950
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