REG - RiverFort Global Opp - Trading Update

Riverfort Global OpportunitiesAnnouncement

31/01/2024 15:45

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RNS Number : 5800B  RiverFort Global Opportunities PLC  31 January 2024

 

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:

 

 RGO plc

 Philip Haydn Slater, Chairman   Tel: +44 (0) 20 3368 8978

 Nicholas Lee, Director
 Nominated Adviser

 Beaumont Cornish                Tel: +44 (0) 20 7628 3396

 Roland Cornish

 Felicity Geidt
 Joint Broker

 Peterhouse Capital Limited      Tel: +44 (0) 20 7469 0935

 Duncan Vasey/Lucy Williams      Tel: +44 (0) 20 7469 0936
 Joint Broker                    Tel: +44 (0) 20 7186 9950

 Shard Capital Partners LLP

 Damon Heath/Erik Woolgar

 

 

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