REG - Livermore Inv. Group - Interim Results
26/09/2024 07:00
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RNS Number : 6785F Livermore Investments Group Limited 26 September 2024
26 September, 2024
LIVERMORE INVESTMENTS GROUP LIMITED
UNAUDITED INTERIM RESULTS FOR SIX MONTHS ENDED 30 JUNE 2024
Livermore Investments Group Limited (the "Company" or "Livermore") today
announces its unaudited interim results for the six months ended 30 June 2024.
These results will be made available on the Company's website today.
For further investor information please go to www.livermore-inv.com
(http://www.livermore-inv.com) .
Enquiries:
Livermore Investments Group
Limited
+41 43 344 3200
Gaurav Suri
Strand Hanson Limited (Financial & Nominated Adviser and
Broker) +44 (0)20 7409 3494
Richard Johnson / Ritchie Balmer
Chairman's and Chief Executive's Review
Introduction
We are pleased to announce the interim financial results for Livermore
Investments Group Limited (the "Company" or "Livermore") for the six months
ended 30 June 2024. References to the Company hereinafter also include its
consolidated subsidiary (note 8).
During the first half of 2024, the Company's NAV increased by 16.8% (USD
22.9m) from the beginning of the year to USD 158.7m (Dec 2023: USD 135.8m; Jun
2023: USD 131.6m). The CLO and financial portfolio delivered USD 12.1m in
gains and our investment in Fetcherr Ltd ("Fetcherr") was valued higher by USD
13.3m as of end of June 2024. These gains were offset partially by
administration and other expenses of about USD 2.3m. The NAV per share as at
30 June 2024 was USD 0.96. As at 30 June 2024, the Company held USD 52.2m in
cash and marketable securities (June 2023: USD 55.4m).
The positive economic development in 2023 continued in the first half of 2024.
Services sectors continued to drive growth while manufacturing remained weak.
Although the growth rates in the US have slowed down, they are at sustainable
levels with the employment market in better balance. Inflation rates continued
on their path to normalization, albeit with some jumps earlier in the year.
Central banks are now starting to shift their focus to interest rate
reductions to keep real rates at normalized levels. The Swiss National Bank
(SNB) and European Central Bank (ECB) have begun their rate reduction cycles
with the US following in late September 2024.
In the US, large technology companies continued to lead the world in
innovation and market capitalization gains. Developments in Artificial
Intelligence (AI) continued to capture the imaginations of individuals,
corporates, and governments alike. The pace of capital expenditures by large
data centre companies to reposition their businesses for higher computational
workloads is unprecedented. Most corporates are keen to evaluate solutions
that may bring benefits of AI to various areas of their business.
In 2021, the Company had invested in a start-up ("Fetcherr") that focused on
applying AI techniques to deliver real-time pricing and revenue enhancement
solutions for the airline industry. Over the last 3 years, Fetcherr has
succeeded in demonstrating its superiority and acquired airline clients large
and small across the globe. Their pipeline of clients willing to adopt their
product continues to grow faster than they can keep pace. Fetcherr recently
signed a top 3 US airline and raised capital at a valuation of USD 250m. In
May 2024, the Company invested USD 6.5m to purchase shares in a secondary
offering in parallel with the capital raise in order to maintain its stake in
Fetcherr. Post balance sheet, in July 2024, the Company invested an additional
USD 3.46m and now holds 11.84% of Fetcherr on a fully diluted basis.
In credit markets, demand for CLO debt and US Senior Secured Loans (US Loans)
was robust in the first half of 2024, as higher coupons of floating rate
securities and good economic growth attracted income-oriented investors. US
loans have been further well supported by healthy new CLO issuance and reset
market activity. Inflation has been generally good for credit over the last
few years, and unless growth slows meaningfully, credit is expected to hold
up better as an asset class on a relative basis. While supply of CLO debt in
the primary market has kept pace with strong demand, there have been spots
where debt has come in weaker than expected, mainly in non-investment grade
CLO tranches. The Company has been successful in taking some advantage of the
technical dislocation and has added some BB rated and equity tranches at
attractive levels. Overall, we expect more volatility in the next few
quarters, which should bring some interesting opportunities to deploy
capital.
During the first half, the Company took advantage of strong performance of CLO
equity and reduced some positions. Further, as the Company did not materially
invest in warehouses and new CLO equity between April 2022 to Jan 2024, the
CLO portfolio has amortized and is currently much smaller than in 2021.
Management expects to gradually increase the size of its CLO portfolio to
normalized levels. So, in Jan 2024, the Company returned to the new issue CLO
equity market. In January 2024, management invested in a warehouse managed by
Blackstone. This warehouse has been converted to a CLO in September 2024. In
March 2024, the Company invested in a warehouse managed by MJX. This warehouse
was converted to a CLO in June 2024. The Company generated over USD 0.7m in
carry from the MJX warehouse. Post balance sheet, the Company has opened a new
warehouse managed by PGIM. The CLO and warehouse portfolio generated USD 12.1m
of gains in the first half of 2024.
Financial Review
The NAV of the Company as at 30 June 2024 was USD 158.7m (31 December 2023:
USD 135.8m). The profit after tax for the first half of 2024 was USD 9.7m,
which represents earnings per share of USD 0.06.
The overall change in the NAV is primarily attributed to the following:
30 June 2024 30 June 2023 31 December 2023
US $m US $m US $m
Shareholders' funds at beginning of period 135.8 127.7 127.7
----- ----- -----
Income from investments 12.3 11.5 24.1
Other income - 0.3 0.3
Unrealised gains /(losses) on investments 13.0 (5.8) (7.5)
Operating expenses (1.9) (1.7) (3.3)
Other expenses - - (0.3)
Net finance costs (0.4) (0.3) (0.1)
Tax charge (0.1) (0.1) (0.2)
----- ----- -----
Increase in net assets from operations 22.9 3.9 13.0
Dividends paid - - (4.9)
----- ----- -----
Shareholders' funds at end of period 158.7 131.6 135.8
----- ----- -----
Net Asset Value per share US $0.96 US $0.80 US $0.82
Livermore's Strategy
The Company's primary investment objective is to generate high current income
and regular cash flows. The financial portfolio is constructed around fixed
income instruments such as Collateralized Loan Obligations ("CLOs") and other
securities or instruments with exposure primarily to senior secured and
usually broadly syndicated US loans. The Company has a long-term oriented
investment philosophy and invests primarily with a buy-and-hold mentality,
though from time to time the Company will sell investments to realize gains or
for risk management purposes.
Strong emphasis is given to maintaining sufficient liquidity and low leverage
at the overall portfolio level and to re-invest in existing and new
investments along the economic cycle.
Dividend & Buyback
The Board of Directors will decide on the Company's dividend policy for 2024
based on profitability, liquidity requirements, portfolio performance, market
conditions, and the share price of the Company relative to its NAV.
Richard Rosenberg Noam Lanir
Non-Executive Chairman Chief Executive
25 September 2024
Review of Activities
Economic & Investment Environment
The global economy continued to grow moderately in the first half of 2024,
with some regional disparities. The US saw relatively robust growth, while
other regions experienced modest activity. Global manufacturing remained weak,
though goods trade increased slightly. Inflation continued to ease from the
previous year's highs but stayed above central banks' targets in many
countries, leading to sustained restrictive monetary policies. Future global
economic growth is expected to remain moderate due to previous monetary
tightening and less expansionary fiscal policies, with risks including
potentially prolonged high inflation and rising geopolitical tensions.
Since the December 2023 monetary policy assessment by the US Federal Reserve,
inflation and monetary policy expectations have driven financial markets.
Central banks indicated that interest rates would not rise further and might
decrease in 2024, initially leading to expectations for rapid rate cuts.
However, strong US economic performance and a focus on persistent inflation
moderated these expectations, causing ten-year government bond yields to rise
since the start of the year. Some central banks, however, were able to begin
easing monetary policies after two years of tightening.
In the U.S., GDP growth slowed to a sustainable 1.3% in the first quarter of
2024. Private domestic demand remained strong, while public spending and
export growth were minimal. The unemployment rate held steady at 4.0% in May
2024, with wage growth remaining above average but showing signs of slowing.
The Federal Reserve maintained the federal funds rate at 5.25-5.5% during its
May and June meetings, continuing the rate level set in July 2023, which may
be the peak of the current tightening cycle. The Federal Reserve has reduced
its holdings of Treasury and mortgage-backed securities by approximately $1.4
trillion since mid-2023, contributing to tighter financial conditions. Despite
these conditions, however, credit remained generally available, though at
higher rates, leading to a slowdown in lending activity. As of May 2024, the
Personal Consumption Expenditures (PCE) price index increased by 2.6% over the
previous 12 months, down from a peak of 7.1% in June 2022. Despite this
moderation, the US labour market remained strong.
The euro area economy has been stagnant for over a year, primarily due to
reduced household purchasing power from inflation, tighter monetary policy,
and less expansionary fiscal policies. Despite these headwinds, the
unemployment rate remained historically low at 6.4% in both January and April
2024, with employment figures continuing to rise. The services sector
continued to perform well while the manufacturing sector has continued to be
under pressure. Strong wage growth is expected to further stimulate private
consumption throughout the year. Consumer price inflation in the euro area was
2.6% in both February and May 2024, exceeding the European Central Bank's
(ECB) 2% target. Core inflation remained elevated, at 3.1% in February and
2.9% in May, largely due to high services inflation fuelled by strong wage
growth. The ECB maintained restrictive key interest rates, with the deposit
facility rate at 4.0% until June 2024. At their June meeting, the ECB lowered
its key interest rates by 25 basis points, reducing the deposit facility rate
to 3.75%. The ECB indicated that further rate cuts might be possible,
contingent on future economic data.
Economic growth in China continued to underwhelm with weakness in services and
manufacturing, though government infrastructure spending provided support.
China continues to struggle with their real estate crisis and weak sentiment,
but expansionary policies and central bank easing measures have helped
stabilize the economy somewhat. Consumer price inflation was 0.7% in February
2024, driven by holiday-related price increases, while core inflation rose to
1.2%. In the first quarter of 2024, GDP growth accelerated to 6.6% due to
stimulus measures and favourable exports. Inflation weakened, with consumer
price inflation near 0% in May and core inflation at 0.6%.
Stock markets in the developed world continued to benefit from favourable
financial conditions, with the MSCI World Index reaching an all-time high and
the VIX indicating low volatility. The US dollar appreciated against most
currencies with the DXY index, up 4.5%, while the euro remained stable and the
yen depreciated sharply. Oil prices increased to around USD 85 per barrel due
to geopolitical tensions and OPEC+ production cuts, while gas prices fell and
overall commodity prices saw a slight rise. Tensions in the middle-east
continued to persist and there is still no end in sight for the Russia-Ukraine
conflict.
In the first half of 2024, the US Loan market performed well with the Credit
Suisse Leverage Loan Index (CSLLI) generating a total return of 4.44%. Loan
refinancing and repricing activity remained elevated with high base rates
maintaining attractive coupons on floating-rate loans. Default rates declined
with the trailing 12-month par-weighted default rate at 0.92% by June 2024.
Strong demand for US loans drove prices for higher quality loans over 100,
initiating significant refinancing activity. As of 30 June 2024, less than 3%
of the loan market is set to mature before 2026, with significant reductions
in maturities for 2025 and 2026.
In the first half of 2024, CLO new issuance reached approximately $102
billion, driven by tighter CLO AAA spreads and significant CLO refinancing and
reset activity, totalling over $110 billion. The market is on track to surpass
the 2021 issuance records.
CLO equity and debt tranches performed well as high coupons continued to keep
up the appeal of floating rate securities. CLO equity continued to pay strong
distributions as default rates stayed limited. Transactions with cleaner or
newer portfolios benefitted more as better loan prices stayed elevated despite
refinancings. Lower quality loans continued to struggle under the weight of
still high base rates and poor business outlook.
Sources: Swiss National Bank (SNB), European Central Bank (ECB), US Federal
Reserve, Bloomberg, JP Morgan, S&P Capital IQ
Financial Portfolio and Trading Activity
The Company manages a financial portfolio valued at USD 125.5m as at 30 June
2024, which is invested mainly in fixed income and credit related securities.
The following is a table summarizing the financial portfolio at 30 June 2024:
30 June 2024 30 June 2023 31 December 2023
US $m US $m US $m
Investment in the loan market through CLOs 62.9 64.2 68.3
Open warehouse facilities 8.1 - -
Public equities 2.3 2.6 2.0
Short term government bonds 22.8 36.1 28.5
Long term government bonds 4.0 4.2 4.2
Corporate bonds 4.1 3.8 4.0
----- ----- -----
Invested total 104.2 110.9 107.0
Cash 21.3 11.3 20.2
----- ----- -----
Total 125.5 122.2 127.2
----- ----- -----
Senior Secured Loans and CLOs
In the first half of 2024, the US Loan market was stable and performed well.
The Credit Suisse Leverage Loan Index (CSLLI) achieved a non-annualized total
return of 4.44%. Loan refinancing and repricing activity increased in Q2, with
elevated interest rates maintaining attractive coupons on floating-rate loans.
Average loan prices rose to 95.68 from 95.32 at the start of the year. Loan
issuance reached $289 billion, up from $103 billion in the same period of
2023.
The trailing 12-month par-weighted default rate decreased to 0.92% by June,
down from 1.53% at the end of 2023, and is below the long-term average of
2.65%. The 12-month trailing loan prepayment rate increased to 25.3%, driven
by over $44 billion in Loans repaying at par in June. As of 30 June 2024, less
than 3% of the loan market is set to mature before 2026, with significant
reductions in maturities for 2025 and 2026.
In the first half of 2024, CLO new issuance reached approximately $102
billion, marking the fastest pace ever and an increase of over 80% compared to
the same period in 2023. This surge was driven by tighter CLO AAA spreads and
significant CLO refinancing and reset activity, totalling over $110 billion.
The market is on track to surpass the 2021 issuance records.
As of 30 June 2024, CLO AAA discount margins averaged 142 basis points over
SOFR, down 33 basis points from the end of 2023. CLO equity and debt tranches
performed well as high coupons continued to keep up the appeal of floating
rate securities. CLO equity continued to pay strong distributions as default
rates stayed limited. Transactions with cleaner or newer portfolios benefitted
more as better loan prices stayed elevated despite refinancings. Lower quality
loans continued to struggle under the weight of still high base rates and poor
business outlook.
During the first half of 2024, the Company successfully took advantage of the
technical dislocations and added some CLO BB rated tranches and CLO equity at
attractive levels. As well, management booked profits in some CLO equity
positions after the strong performance of CLO equity. In January 2024,
management invested in a warehouse managed by Blackstone. This warehouse will
be converted to a CLO in September 2024. In March 2024, the Company invested
in a warehouse managed by MJX. This warehouse was converted to a CLO in June
2024. The Company generated over USD 0.724m in carry from the MJX warehouse.
Post balance sheet, the Company has opened a new warehouse managed by PGIM.
The CLO and warehouse portfolio generated USD 12.1m of gains in the first half
of 2024.
The Company's CLO portfolio is divided into the following geographical areas:
30 June 2024 30 June 2023 31 December 2023
US $000 Percentage US $000 Percentage US $000 Percentage
USA 62,959 100.0% 64,217 100.0% 68,284 100.0%
------ ------ ------ ------ ------ ------
Private Equity and Fund Investments
The Company has invested in some small private companies with robust growth
and potential.
The following summarizes the book value of the private equity and fund
investments at 30 June 2024:
US $m
Fetcherr Ltd 21.8
Phytech (Israel) 2.6
Other investments 1.8
---
Total 26.2
---
Fetcherr Ltd ("Fetcherr"): Fetcherr is the Israeli start-up that has
developed proprietary large market AI models
for dynamic pricing systems. Fetcherr is disrupting traditional revenue
systems in the airline industry and has signed-up airlines such as Virgin
Airlines, Westjet, and a top 3 US airline among others. Fetcherr continues to
gain clients and market shares. Livermore invested USD 2m in 2021 and another
USD 0.695m in a secondary transaction in 2023 at about a USD 67m valuation.
Around the same time in 2023, Fetcherr raised capital in the form of a SAFE
(convertible debt instrument) at a maximum valuation of USD 100m. In May 2024,
Fetcherr raised USD 25m from Battery Ventures at a USD 250m valuation.
Livermore invested USD 6.5m in May 2024 in a secondary offering parallel to
the abovementioned capital raise. In July 2024, Livermore invested an
additional USD 3.46m and now owns 11.84% of Fetcherr issued share capital.
Phytech Ltd ("Phytech"): Phytech is an agriculture-technology company in
Israel providing end-to-end solutions for achieving higher yields on crops and
tree data. Livermore continues to hold 12.2% in Phytech Global Advisors Ltd,
which in turns now holds 11.95% on a fully diluted basis in Phytech Ltd.
The following table reconciles the review of activities to the Group's
financial assets at 30 June 2024.
US $m
Financial portfolio 104.2
Private equity and fund investments 26.2
-----
130.4
-----
Financial assets at fair value through profit or loss (note 4) 104.2
Financial assets at fair value through other comprehensive income (note 5) 26.2
-----
130.4
-----
Litigation
Information is provided in note 22 to the interim condensed consolidated
financial statements.
Events after the reporting date
Information is provided in note 24 to the interim condensed consolidated
financial statements.
Going Concern
The Directors have reviewed the current and projected financial position of
the Company, making reasonable assumptions about cash and short-term holdings,
interest and distribution income, future trading performance, valuation
projections and debt requirements. On the basis of this review, the Directors
have a reasonable expectation that the Company has adequate resources to
continue in operational existence for the foreseeable future. Accordingly,
they continue to adopt the going concern basis in preparing the interim
condensed consolidated financial statements.
Livermore Investments Group Limited
Condensed Consolidated Statement of Financial Position
at 30 June 2024
Note 30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
Assets US $000 US $000 US $000
Non-current assets
Property, plant and equipment 50 45 46
Right-of-use asset 472 45 -
Financial assets at fair value through profit or loss 4 62,959 64,217 68,284
Financial assets at fair value through other
comprehensive income 5 26,244 6,424 6,498
Investments in subsidiaries 8 9,790 5,700 5,780
------ ------- -------
99,515 76,431 80,608
------ ------- -------
Current assets
Trade and other receivables 9 485 689 102
Financial assets at fair value through profit or loss 4 41,282 46,733 38,750
Cash and cash equivalents 10 21,255 13,273 20,169
------- ------- -------
63,022 60,695 59,021
------- ------- -------
Total assets 162,537 137,126 139,629
------- ------- -------
Equity
Share capital 11 - - -
Share premium and treasury shares 11 163,130 163,130 163,130
Other reserves (8,850) (21,295) (22,027)
Retained earnings / (accumulated losses) 4,400 (10,245) (5,266)
------- ------- -------
Total equity 158,680 131,590 135,837
------- ------- -------
Liabilities
Non-current liabilities
Lease liability 367 - -
------- ------- -------
Current liabilities
Bank overdrafts 10 - 1,985 -
Trade and other payables 12 3,226 3,351 3,629
Lease liability - current portion 105 45 -
Current tax liability 159 155 163
------- ------- -------
3,490 5,536 3,792
------- ------- -------
Total liabilities 3,857 5,536 3,792
------- ------- -------
Total equity and liabilities 162,537 137,126 139,629
------- ------- -------
Net asset value per share
Basic and diluted net asset value per share (US $) 14 0.96 0.80 0.82
------- ------- -------
Livermore Investments Group Limited
Condensed Consolidated Statement of Profit or Loss
for the six months ended 30 June 2024
Six months Six months Year
Note ended ended ended
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
Investment income
Interest and distribution income 16 12,330 11,468 24,054
Fair value changes of investments 17 (278) (5,786) (6,671)
------- ------- -------
12,052 5,682 17,383
Other income - 294 294
Operating expenses 18 (1,917) (1,651) (3,369)
Other expenses - - (270)
------- ------- -------
Operating profit 10,135 4,325 14,038
Finance costs 19 (650) (382) (75)
Finance income 19 219 37 156
------- ------- -------
Profit before taxation 9,704 3,980 14,119
Taxation charge (38) (31) (231)
------- ------- -------
Profit for period / year 9,666 3,949 13,888
------- ------- -------
Earnings per share
Basic and diluted earnings per share (US $) 20 0.06 0.02 0.08
------- ------- -------
Livermore Investments Group Limited
Condensed Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2024
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
Profit for the period / year 9,666 3,949 13,888
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Foreign exchange (loss) / gain on the translation of subsidiary (84) 30 59
Items that are not reclassified subsequently to profit or loss
Financial assets designated at fair value through other comprehensive income - 13,261 (114) (875)
fair value gains / (losses)
------ ------ ------
Total comprehensive income for the period / year 22,843 3,865 13,072
------ ------ ------
The total comprehensive income for the period / year is wholly attributable to
the owners of the Company.
Livermore Investments Group Limited
Condensed Consolidated Statement of Changes in Equity
for the period ended 30 June 2024
Share Treasury shares Translation reserve Investment revaluation reserve Retained earnings Total
premium
US $000 US $000 US $000 US $000 US $000 US $000
Balance at 1 January 2023 169,187 (6,057) 55 (21,269) (14,191) 127,725
Dividends - - - - (4,960) (4,960)
------- ------- ------- ------- ------- -------
Transactions with owners - - - - (4,960) (4,960)
------- ------- ------- ------- ------- -------
Profit for the year - - - - 13,888 13,888
Other comprehensive income:
Financial assets at fair value through other comprehensive income - fair value - - - (875) - (875)
losses
Foreign exchange gain on the translation of subsidiary - - 59 - - 59
Transfer of realised losses - - - 3 (3) -
------- ------- ------- ------- ------- -------
Total comprehensive income for the year - - 59 (872) 13,885 13,072
------- ------- ------- ------- ------- -------
Balance at 31 December 2023 169,187 (6,057) 114 (22,141) (5,266) 135,837
Profit for the period - - - - 9,666 9,666
Other comprehensive income:
Financial assets at fair value through other comprehensive income - fair value - - - 13,261 - 13,261
gains
Foreign exchange loss on the translation of subsidiary - - (84) - - (84)
------- ------- ------- ------- ------- -------
Total comprehensive income for the period - - (84) 13,261 9,666 22,843
------- ------- ------- ------- ------- -------
Balance at 30 June 2024 169,187 (6,057) 30 (8,880) 4,400 158,680
------- ------- ------- ------- ------- -------
Share Treasury shares Translation reserve Investment revaluation reserve Retained earnings Total
premium
US $000 US $000 US $000 US $000 US $000 US $000
Balance at 1 January 2023 169,187 (6,057) 55 (21,269) (14,191) 127,725
Profit for the period - - - - 3,949 3,949
Other comprehensive income:
Financial assets at fair value through other comprehensive income - fair value - - - (114) - (114)
losses
Foreign exchange gain on the translation of subsidiary - - 30 - - 30
Transferred of realised losses - - - 3 (3) -
------- ------- ------- ------- ------- -------
Total comprehensive income for the period - 30 (111) 3,946 3,865
------- ------- ------- ------- ------- -------
Balance at 30 June 2023 169,187 (6,057) 85 (21,380) (10,245) 131,590
------- ------- ------- ------- ------- -------
Livermore Investments Group Limited
Condensed Consolidated Statement of Cash Flows
for the period ended 30 June 2024
Six months Six months Year
Note ended ended ended
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
Cash flows from operating activities
Profit / (loss) before taxation 9,704 3,980 14,119
Adjustments for:
Depreciation expense 52 64 98
Interest expense 19 25 21 55
Interest and distribution income 16 (12,330) (11,468) (24,054)
Bank interest income 19 (219) (37) (156)
Fair value changes of investments 17 278 5,786 6,671
Exchange differences 19 625 361 20
------- ------- -------
(1,865) (1,293) (3,247)
Changes in working capital
Increase in trade and other receivables (383) (623) (30)
Decrease in trade and other payables (487) (382) (104)
------- ------- -------
Cash flows used in operations (2,735) (2,298) (3,381)
Interest and distributions received 12,549 11,505 24,210
Tax paid (42) (22) (201)
------- ------- -------
Net cash from operating activities 9,772 9,185 20,628
------- ------- -------
Cash flows from investing activities
Acquisition of investments (65,239) (21,719) (55,237)
Proceeds from sale of investments 57,259 13,301 48,973
------- ------- -------
Net cash used in investing activities (7,980) (8,418) (6,264)
------- ------- -------
Cash flows from financing activities
Lease liability payments (56) (68) (131)
Interest paid 19 (25) (21) (55)
Dividends paid - - (4,960)
------- ------- -------
Net cash used in financing activities (81) (89) (5,146)
------- ------- -------
Net increase / (decrease) in cash and cash equivalents 1,711 678 9,218
Cash and cash equivalents at beginning of the period / year 20,169 10,971 10,971
Exchange differences on cash and cash equivalents 19 (625) (361) (20)
------- ------- -------
Cash and cash equivalents at the end of the period / year 10 21,255 11,288 20,169
------- ------- -------
Notes to the Interim Condensed Consolidated Financial Statements
1. Accounting policies
The interim condensed consolidated financial statements of Livermore have been
prepared on the basis of the accounting policies stated in the 2023 Annual
Report, available on www.livermore-inv.com (http://www.livermore-inv.com) .
The application of the IFRS pronouncements that became effective as of 1
January 2024 has no significant impact on the Company's consolidated financial
statements.
2. Critical accounting judgements
In preparing the interim condensed consolidated financial statements,
management made judgements and assumptions. The actual results may differ from
those judgements and assumptions. The critical accounting judgements applied
in the interim condensed consolidated financial statements were the same as
those applied and disclosed in the Company's last annual consolidated
financial statements for the year ended 31 December 2023.
3. Basis of preparation
These unaudited interim condensed consolidated financial statements for the
six months ended 30 June 2024, have been prepared in accordance with IAS 34
"Interim Financial Reporting" as adopted by the European Union. They do not
include all the information required for full annual financial statements and
should be read in conjunction with the consolidated financial statements of
the Company for the year ended 31 December 2023.
The financial information for the year ended 31 December 2023 is extracted
from the Company's consolidated financial statements for the year ended 31
December 2023 which contained an unqualified audit report.
Investment entity status
Livermore meets the definition of an investment entity, as this is defined in
IFRS 10 "Consolidated Financial Statements".
In accordance with IFRS 10, an investment entity is exempted from
consolidating its subsidiaries, unless any subsidiary which is not itself an
investment entity mainly provides services that relate to the investment
entity's investment activities. In Livermore's situation and as at the
reporting date, one of its subsidiaries provide such services. Note 8 shows
further details of the consolidated and unconsolidated subsidiaries.
References to the Company also include its consolidated subsidiary (note 8).
4. Financial assets at fair value through profit or loss
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
Non-current assets
Fixed income investments (CLOs) 62,959 64,217 68,284
------ ------ ------
Current assets
Fixed income investments 38,945 44,137 36,718
Public equity investments 2,337 2,596 2,032
------ ------ ------
41,282 46,733 38,750
------ ------ ------
For description of each of the above categories, refer to note 6.
The above investments represent financial assets that are mandatorily measured
at fair value through profit or loss.
The Company treats its investments in the loan market through Collateralized
Loan Obligations (CLOs) as non-current investments as the Company generally
intends to hold such investments over a period longer than twelve months.
The movement in financial assets at fair value through profit or loss was as
follows:
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
At 1 January 107,034 106,376 106,376
Purchases 54,713 20,780 53,463
Sales (37,259) (11,304) (46,976)
Settlements (20,000) - -
Fair value losses (247) (4,902) (5,829)
------- ------- -------
At 30 June / 31 December 104,241 110,950 107,034
------- ------- -------
5. Financial assets at fair value through other comprehensive income
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
Non-current assets
Private equity and fund investments 26,244 6,424 6,498
------ ------ ------
For description of the above category, refer to note 6.
The above investments are non-trading equity investments that have been
designated at fair value through other comprehensive income.
The movement in financial assets at fair value through other comprehensive
income was as follows:
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
At 1 January 6,498 7,596 7,596
Purchases 6,485 939 1,774
Settlements - (1,997) (1,997)
Fair value gains / (losses) 13,261 (114) (875)
------ ------ ------
At 30 June / 31 December 26,244 6,424 6,498
------ ------ ------
6. Financial assets at fair value
The Company allocates its non-derivative financial assets at fair value (notes
4 and 5) as follows:
· Fixed income investments relate to investments in the loan market
through CLOs, open warehouse facilities, fixed and floating rate bonds, and
perpetual bank debt.
· Public equity investments relate to investments in shares of
companies listed on public stock exchanges.
· Private equity and fund investments relate to investments in the
form of equity purchases in both high growth opportunities in emerging markets
and deep value opportunities in mature markets. The Company generally invests
directly in prospects where it can exert influence. Main investments under
this category are in the fields of real estate.
7. Fair value measurements of financial assets and liabilities
The Company's financial assets are measured at fair value as follows:
· Fixed income investments are valued per their closing market
prices on quoted exchanges, or as quoted by market maker. Investments in open
warehouse facilities that have not yet been converted to CLOs, are valued
based on an adjusted net asset valuation.
The Company values the CLOs based on the valuation reports provided by market
makers. CLOs are typically valued by market makers using discounted cash flow
models. The key assumptions for cash flow projections include default and
recovery rates, prepayment rates and reinvestment assumptions on the
underlying portfolios (typically senior secured loans) of the CLOs.
Default and recovery rates: The amount and timing of defaults in the
underlying collateral and the amount and timing of recovery upon a default are
key to the future cash flows a CLO will distribute to the CLO equity tranche.
All else equal, higher default rates and lower recovery rates typically lead
to lower cash flows. Conversely, lower default rates and higher recoveries
lead to higher cash flows.
Prepayment rates: Senior loans can be pre-paid by borrowers. CLOs that are
within their reinvestment period may, subject to certain conditions, reinvest
such prepayments into other loans which may have different spreads and
maturities. CLOs that are beyond their reinvestment period typically pay down
their senior liabilities from proceeds of such pre-payments. Therefore, the
rate at which the underlying collateral prepays impacts the future cash flows
that the CLO may generate.
Reinvestment assumptions: A CLO within its reinvestment period may reinvest
proceeds from loan maturities, prepayments, and recoveries into purchasing
additional loans. The reinvestment assumptions define the characteristics of
the loans that a CLO may reinvest in. These assumptions include the spreads,
maturities, and prices of such loans. Reinvestment into loans with higher
spreads and lower prices will lead to higher cash flows. Reinvestment into
loans with lower spreads will typically lead to lower cash flows.
Discount rate: The discount rate indicates the yield that market participants
expect to receive and is used to discount the projected future cash flows.
Higher yield expectations or discount rates lead to lower prices and lower
discount rates lead to higher prices for CLOs.
· Public equity investments are valued per their closing market
prices on quoted exchanges.
· Private equity and fund investments are valued using market
valuation techniques as determined by the Directors, mainly on the basis of
valuations reported by third-party managers of such investments. For private
companies, the valuation may be based on recent share transactions from
capital raising or secondary transactions or from well accepted methods such
as discounted cash-flow models. Real Estate entities are valued by independent
qualified property valuers with substantial relevant experience on such
investments. Underlying property values are determined based on their
estimated market values.
· Investments in subsidiaries are valued at fair value as
determined on a net asset valuation basis. The Company has determined that the
reported net asset value of each subsidiary represents its fair value at the
end of the reporting period.
The methods and valuation techniques used for the purpose of measuring fair
value are unchanged compared to the previous reporting period.
The Company has no financial liabilities measured at fair value.
7.1 Fair Value Hierarchy
The fair value hierarchy groups financial assets and liabilities into three
levels based on the significance of inputs used in measuring their fair value.
The fair value hierarchy has the following levels:
· Level 1: quoted prices (unadjusted) in active markets for
identical assets or liabilities that the entity can access at the measurement
date;
· Level 2: inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly or indirectly;
and
· Level 3: unobservable inputs for the asset or liability.
The level within which each financial asset is classified is determined based
on the lowest level of significant input to the fair value measurement.
Financial assets measured at fair value are grouped into the fair value
hierarchy as follows:
30 June 2024 US $000 US $000 US $000 US $000
Level 1 Level 2 Level 3 Total
Fixed income investments 30,870 62,959 8,075 101,904
Private equity and fund investments - - 26,244 26,244
Public equity investments 2,337 - - 2,337
Investments in subsidiaries - - 9,790 9,790
------ ------ ------ ------
33,207 62,959 44,109 140,275
------ ------ ------ ------
30 June 2023 US $000 US $000 US $000 US $000
Level 1 Level 2 Level 3 Total
Fixed income investments 44,137 64,217 - 108,354
Private equity and fund investments - - 6,424 6,424
Public equity investments 2,596 - - 2,596
Investments in subsidiaries - - 5,700 5,700
------ ------ ------ ------
46,733 64,217 12,124 123,074
------ ------ ------ ------
31 December 2023 US $000 US $000 US $000 US $000
Level 1 Level 2 Level 3 Total
Fixed income investments 36,718 68,284 - 105,002
Private equity and fund investments - - 6,498 6,498
Public equity investments 2,032 - - 2,032
Investments in subsidiaries - - 5,780 5,780
------ ------ ------ ------
38,750 68,284 12,278 119,312
------ ------ ------ ------
No financial assets have been transferred between different levels.
Financial assets within level 3 can be reconciled from beginning to ending
balances as follows:
Six months ended 30 June 2024 At fair value through OCI At fair value through profit or loss Investments in subsidiaries
Private equity and fund investments Fixed Income Total
investments
US $000 US $000 US $000 US $000
At 1 January 2024 6,498 - 5,780 12,278
Purchases 6,485 28,075 4,041 38,601
Settlement - (20,000) - (20,000)
Gains / (losses) recognised in:
- Profit or loss - - (31) (31)
- Other comprehensive income 13,261 - - 13,261
------ ------ ------ ------
At 30 June 2024 26,244 8,075 9,790 44,109
------ ------ ------ ------
Six months ended 30 June 2023 At fair value through OCI Investments in subsidiaries
Private equity and fund investments Total
US $000 US $000 US $000
At 1 January 2023 7,596 6,546 14,142
Purchases 939 38 977
Settlement (1,997) - (1,997)
Losses recognised in:
- Other comprehensive income (114) (884) (998)
------ ------ ------
At 30 June 2023 6,424 5,700 12,124
------ ------ ------
Year ended 31 December 2023 At fair value through OCI Investments in subsidiaries
Private equity and fund investments Total
US $000 US $000 US $000
At 1 January 2023 7,596 6,546 14,142
Purchases 1,774 76 1,850
Settlement (1,997) - (1,997)
Losses recognised in:
- Profit or loss - (842) (842)
- Other comprehensive income (875) - (875)
------ ------ ------
At 31 December 2023 6,498 5,780 12,278
------ ------ ------
The above recognised gains / (losses) are allocated as follows:
Six months ended 30 June 2024 At fair value through OCI Investments in subsidiaries
Private equity and fund investments Total
Profit or loss US $000 US $000 US $000
- Financial assets held at period-end - (31) (31)
------ ------ ------
Other comprehensive income
- Financial assets held at period-end 13,261 - 13,261
------ ------ ------
Total gains/ (losses) for period 13,261 (31) 13,230
------ ------ ------
Six months ended 30 June 2023 At fair value through OCI Investments in subsidiaries
Private equity and fund investments Total
Profit or loss US $000 US $000 US $000
- Financial assets held at period-end - (884) (884)
------ ------ ------
Other comprehensive income
- Financial assets held at period-end (114) - (114)
------ ------ ------
Total losses for period (114) (884) (998)
------ ------ ------
Year ended 31 December 2023 At fair value through OCI Investments in subsidiaries
Private equity and fund investments Total
Profit or loss US $000 US $000 US $000
- Financial assets held at year-end - (842) (842)
------ ------ ------
Other comprehensive income
- Financial assets held at year-end (875) - (875)
------ ------ ------
Total losses for year (875) (842) (1,717)
------ ------ ------
The Company has not developed any quantitative unobservable inputs for
measuring the fair value of its Level 3 financial assets. Instead, the Company
used prices from third-party pricing information without adjustment.
Private equity and fund investments within Level 3 represent investments in
private equity funds. Their value has been determined by each fund manager
based on the funds' net asset value. Each fund's net asset value is primarily
driven by the fair value of its underlying investments. In all cases,
considering that such investments are measured at fair value, the carrying
amounts of the funds' underlying assets and liabilities are considered as
representative of their fair values.
Investments in subsidiaries have been valued based on their net asset
position. The main assets of the subsidiaries represent investments measured
at fair value and receivables from the Company itself as well as third
parties. Their net asset value is considered as a fair approximation of their
fair value.
A reasonable change in any individual significant input used in the Level 3
valuations is not anticipated to have a significant change in fair values as
above.
8. Investment in subsidiaries
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
Unconsolidated subsidiaries
At 1 January 5,780 6,546 6,546
Additions 4,041 38 76
Fair value losses (31) (884) (842)
------ ------ ------
At 30 June / 31 December 9,790 5,700 5,780
------ ------ ------
The additions during the period include the Company's capital contribution of
USD 4.005m into PNG Trading Limited. The remaining additions for the period,
as well as the additions in 2023 relate to the fair value of amounts
receivable from the Company's unconsolidated subsidiary Sandhirst Ltd, that
were waived by the Company as a means of capital contribution (note 21).
The investments in which the Company has a controlling interest as at the
reporting date are as follows:
Name of Subsidiary Place of incorporation Holding Voting rights and shares held Principal activity
Consolidated subsidiary
Livermore Capital AG Switzerland Ordinary shares 100% Administration services
Unconsolidated subsidiaries
Livermore Properties Limited British Virgin Islands Ordinary shares 100% Holding of investments
Mountview Holdings Limited British Virgin Islands Ordinary shares 100% Investment vehicle
Sycamore Loan Strategies Ltd Cayman Islands Ordinary shares 100% Investment vehicle
Livermore Israel Investments Ltd Israel Ordinary shares 100% Holding of investments
Sandhirst Ltd Cyprus Ordinary shares 100% Holding of investments
PNG Trading Limited Cyprus Ordinary shares 100% Trading in investments
PNG Trading Limited was established on 11 October 2023 as a wholly owned
subsidiary of the Company. Until 31 December 2023 the subsidiary remained
inactive. It became active in 2024.
9. Trade and other receivables
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
Financial items
Amounts due by related parties (note 21) - - 16
Non-financial items
Advances to related parties (note 21) 254 610 -
Prepayments 217 72 78
VAT receivable 14 7 8
---- ---- ----
485 689 102
---- ---- ----
For the Company's receivables of a financial nature, no lifetime expected
credit losses and no corresponding allowance for impairment have been
recognised, as their default rates were determined to be close to 0%.
No receivable amounts have been written-off during either 2024 or 2023.
10. Cash and cash equivalents
Cash and cash equivalents included in the consolidated cash flow statement
comprise the following:
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
Demand deposits 21,255 13,273 20,169
Bank overdraft used for cash management purposes - (1,985) -
------ ------ ------
Cash and cash equivalents 21,255 11,288 20,169
------ ------ ------
11. Share capital, share premium and treasury shares
Livermore Investments Group Limited (the "Company") is an investment company
incorporated under the laws of the British Virgin Islands. The Company has
an issued share capital of 174,813,998 ordinary shares with no par value.
In the statement of financial position, the amount included as 'Share premium
and treasury shares' comprises of:
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
Share premium 169,187 169,187 169,187
Treasury shares (6,057) (6,057) (6,057)
------- ------- -------
163,130 163,130 163,130
------- ------- -------
12. Trade and other payables
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
Financial items
Trade payables 115 129 229
Amounts due to related parties (note 21) 3,097 3,071 3,058
Legal settlement due (note 22) - - 270
Accrued expenses 14 151 72
------ ------ ------
3,226 3,351 3,629
------ ------ ------
13. Dividend
The Board of Directors will decide on the Company's dividend policy for 2024
based on profitability, liquidity requirements, portfolio performance, market
conditions, and the share price of the Company relative to its net asset
value.
14. Net asset value per share
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
Net assets attributable to ordinary shareholders (USD 000) 158,680 131,590 135,837
------------- ------------- -------------
Closing number of ordinary shares in issue 165,355,421 165,355,421 165,355,421
------------- ------------- -------------
Basic net asset value per share (USD) 0.96 0.80 0.82
------------- ------------- -------------
Number of Shares
Ordinary shares 174,813,998 174,813,998 174,813,998
Treasury shares (9,458,577) (9,458,577) (9,458,577)
------------- ------------- -------------
Closing number of ordinary shares in issue 165,355,421 165,355,421 165,355,421
------------- ------------- -------------
The diluted net asset value per share equals the basic net asset value per
share since no potentially dilutive shares exist at any of the reporting dates
presented.
15. Segment reporting
The Company's activities fall under a single operating segment.
The Company's investment income / (losses) and investments are divided into
geographical areas as follows:
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
Investment income / (losses)
European countries 158 (296) (132)
United States 11,946 6,932 18,423
India - - (7)
Asia (52) (954) (901)
------- ------- -------
12,052 5,682 17,383
------- ------- -------
Investments
European countries 9,852 6,348 5,989
United States 122,975 109,478 105,854
India 165 - 140
Asia 7,283 7,248 7,329
------- ------- -------
140,275 123,074 119,312
------- ------- -------
Investment income / (losses), comprising interest and distribution income as
well as fair value gains or losses on investments, is allocated based on the
issuer's location. Investments are also allocated based on the issuer's
location.
The Company has no significant dependencies, in respect of its investment
income, on any single issuer.
16. Interest and distribution income
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
Interest income 818 1,057 1,921
Distribution income 11,512 10,411 22,133
------ ------ ------
12,330 11,468 24,054
------ ------ ------
Interest and distribution income is analysed between the Company's different
categories of financial assets, as follows:
Six months ended 30 June 2024
Interest income Distribution income Total
Financial assets at fair value through profit or loss US $000 US $000 US $000
Fixed income investments 818 11,465 12,283
Public equity investments - 47 47
------ ------ ------
818 11,512 12,330
------ ------ ------
Six months ended 30 June 2023
Interest income Distribution income Total
Financial assets at fair value through profit or loss US $000 US $000 US $000
Fixed income investments 1,057 10,363 11,420
Public equity investments - 48 48
------ ------ ------
1,057 10,411 11,468
------ ------ ------
Year ended 31 December 2023
Interest income Distribution income Total
Financial assets at fair value through profit or loss US $000 US $000 US $000
Fixed income investments 1,921 21,690 23,611
Public equity investments - 443 443
------ ------ ------
1,921 22,133 24,054
------ ------ ------
The Company's distribution income derives from multiple issuers. The Company
does not have concentration to any single issuer.
17. Fair value changes of investments
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
Fair value losses on financial assets through profit or loss (277) (4,751) (5,808)
Fair value losses on investment in subsidiaries (31) (884) (842)
Fair value gains / (losses) on derivatives 30 (151) (21)
------- ------- -------
(278) (5,786) (6,671)
------- ------- -------
The investments disposed in the six months ended 30 June 2024 had the
following cumulative (i.e. from the date of acquisition up to the date of
disposal) financial impact in the Company's net asset position:
Cumulative distribution or interest
Realised gains* Unaudited Total financial impact
Unaudited Unaudited
US $000 US $000 US $000
Financial assets at fair value through profit or loss
Fixed income investments (2,418) 11,211 8,793
Derivatives 30 - 30
------- ------- -------
(2,388) 11,211 8,823
------ ------ ------
* difference between disposal proceeds and original acquisition cost
18. Operating expenses
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
Directors' fees and expenses 442 440 884
Other salaries and expenses 124 123 234
Professional and consulting fees 846 568 1,156
Legal expenses 4 2 6
Bank custody fees 56 87 156
Office cost 117 98 276
Depreciation 52 64 98
Other operating expenses 261 254 479
Audit fees 15 15 78
Tax fees - - 2
------ ------ ------
1,917 1,651 3,369
------ ------ ------
19. Finance costs and income
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
Finance costs
Bank interest costs 25 21 55
Foreign exchange losses 625 361 20
------ ------ ------
650 382 75
------ ------ ------
Finance income
Bank interest income 219 37 156
------ ------ ------
20. Earnings per share
Basic earnings per share is calculated by dividing the profit for the period /
year attributable to ordinary shareholders of the Company by the weighted
average number of shares in issue of the Company during the relevant financial
periods.
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
Profit for the period / year attributable to ordinary shareholders of the 9,666 3,949 13,888
parent (USD 000)
---------- ---------- ----------
Weighted average number of ordinary shares outstanding 165,355,421 165,355,421 165,355,421
---------- ---------- ----------
Basic earnings per share (USD) 0.06 0.02 0.08
---------- ---------- ----------
The diluted earnings per share equals the basic earnings per share since no
potentially dilutive shares were in existence during 2024 and 2023.
21. Related party transactions
The Company is controlled by Groverton Management Ltd, an entity owned by Noam
Lanir, which at 30 June 2024 held 74.41% of the Company's voting rights.
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
US $000 US $000 US $000
Amounts receivable from / advances to key management
Directors' current accounts 33 - 16 (1)
Advances to key management personnel 221 610 - (2)
------ ------ ------
254 610 -
------ ------ ------
Amounts payable to unconsolidated subsidiaries
Livermore Israel Investments Ltd (3,046) (3,046) (3,046) (3)
------ ------ ------
Amounts payable to key management
Directors' current accounts (51) (25) (12) (3)
------ ------ ------
Key management compensation
Short term benefits
Executive Directors' fees 398 398 795 (4)
Non-executive Directors' fees 45 42 89
Other key management fees 205 200 408 (5)
------ ------ ------
648 640 1,292
------ ------ ------
(1) The Directors' current accounts with debit balances are interest free,
unsecured, and have no stated repayment date.
(2) The advances to key management personnel relate to payments made to
members of key management against their remuneration for the second half of
2024 and 2023 correspondingly.
(3) The amounts payable to unconsolidated subsidiary and Directors' current
accounts with credit balances are interest free, unsecured, and have no stated
repayment date.
(4) These payments were made directly to companies which are related to the
Directors.
(5) Other Key management fees are included within professional fees (note
18)
During the period, the Company waived a receivable amount of USD 0.036m (30
June 2023: USD 0.038, 31 December 2023: USD 0.076m) from its subsidiary
Sandhirst Ltd, as a means of capital contribution to the subsidiary (note 8).
No social insurance and similar contributions nor any other defined benefit
contributions plan costs incurred for the Group in relation to its key
management personnel in either 2024 or 2023.
22. Litigation
Fairfield Sentry Ltd vs custodian bank and beneficial owners
One of the custodian banks that the Company used faces a contingent claim up
to USD 2.1m, and any interest as will be decided by a US court and related
legal fees, with regards to the redemption of shares in Fairfield Sentry Ltd,
which were bought in 2008 at the request of Livermore and on its behalf. If
the claim proved to be successful, Livermore would have to compensate the
custodian bank since the transaction was carried out on Livermore's behalf.
The same case was also filed in BVI where the Privy Council ruled against the
plaintiffs.
In December 2023, Livermore came into an out-of-court settlement agreement for
USD 0.27m, which was fully paid in January 2024.
23. Commitments
The Company has expressed its intention to provide financial support to its
subsidiaries, where necessary, to enable them to meet their obligations as
they fall due.
Other than the above, the Company has no capital or other commitments at 30
June 2024.
24. Events after the reporting date
The Company invested an additional USD 3.46m in Fetcherr in a secondary
offering in July 2024. Livermore after this additional investment owns 11.84%
of Fetcherr's issued share capital on a fully diluted basis. The investment
in Fetcherr is included within Private equity and fund investments under
Financial assets at fair value through other comprehensive income (note 5).
There were no other material events after the reporting date, which have a
bearing on the understanding of these interim condensed consolidated financial
statements.
25. Preparation of interim financial statements
Interim condensed consolidated financial statements are unaudited.
Consolidated financial statements for Livermore Investments Group Limited for
the year ended 31 December 2023, prepared in accordance with International
Financial Reporting Standards as adopted by the European Union, on which the
auditors gave an unqualified audit report are available on the Company's
website www.livermore-inv.com (http://www.livermore-inv.com) .
Review Report to the Members of Livermore Investments
Group Limited
Review Report on the interim Condensed Consolidated Financial Statements
Introduction
We have reviewed the interim condensed consolidated financial statements of
Livermore Investments Group Limited (the ''Company'') and its subsidiary
(together with the Company "the Group"), which are presented in pages 7 to 25
and comprise the condensed consolidated statement of financial position as at
30 June 2024 and the consolidated statements of comprehensive income, changes
in equity and for the period from 1 January 2024 to 30 June 2024, and notes to
the interim condensed consolidated financial statements, including a summary
of significant accounting policies.
The Board of Directors is responsible for the preparation and presentation of
these interim condensed consolidated financial statements in accordance with
International Financial Reporting Standards applicable to interim financial
reporting as adopted by the European Union ('IAS34 Interim Financial
Reporting'). Our responsibility is to express a conclusion on these interim
condensed consolidated financial statements based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements 2410, 'Review of Interim Financial Information Performed by the
Independent Auditor of the Entity'. A review of interim financial information
consists of making inquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing and consequently does not enable us
to obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the accompanying interim condensed consolidated financial
information does not present fairly, in all material respects, the financial
position of the entity as at June 30, 2024, and of its financial performance
and its cash flows for the six month period then ended in accordance with IAS
34 'Interim Financial Reporting' as adopted by the European Union.
Other information
The Board of Directors is responsible for the other information. The other
information comprises the information included in the Chairman's and Chief
Executive's Review and Review of Activities, but does not include the
condensed consolidated financial statements and our review report thereon.
Our conclusion on the condensed consolidated financial statements does not
cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our review of the condensed consolidated financial
statements, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the review or
otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in
this regard.
Other Matter
This report, including the conclusion, has been prepared for and only for the
Group's members as a body and for no other purpose. We do not, in giving this
conclusion, accept or assume responsibility for any other purpose or to any
other person to whose knowledge this report may come to.
Polyvios Polyviou
Certified Public Accountant and Registered Auditor
for and on behalf of
Grant Thornton (Cyprus) Ltd
Certified Public Accountants and Registered Auditors
Limassol, 25 September 2024
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