Riverfort Global Opportunities (RGO ) has recorded a second profitable year in its FY20 results, with the company now expecting to pay a final dividend of 0.04 pence per share. 

The investment company made a profit from continuing operations of £1.49m (FY19: £623,690) in the year to 31 December 2020 with net asset value also up at £9.2m, a 17% increase since the beginning of the year when net asset value stood at £7.87m.  

Riverfort said it has been actively deploying its investment capital by investing principally in listed junior companies through debt and equity linked products. It said these investment structures lower volatility and risk, enabling the Company to drive profits and cash income. 

During the year, Riverfort invested in several companies including, inter alia, Westminster Group, Invinity Energy Systems and Tanzanian Gold Corporation. By period-end, the Company held around £5.1 million of its investment portfolio in 18 different companies. 

In particular, the firm cited its shareholding in Pires Investments which makes up Riverfort’s principal equity investment. The company told investors that Pires has made ‘significant progress’ over the period, with its share price increasing by some 135% during the year. 

Over the period, Riverfort successfully implemented a capital reduction thereby enabling it to be in a position to pay a dividend. In November 2020, a gross interim dividend of 0.02p per share was declared and paid. Riverfort said it now expects to pay a final dividend in line with the indication previously provided which is expected to amount to 0.04p a share. 

The group said the market has ‘clearly recognised the improved performance and potential of the Company’ as demonstrated by its share price which has increased from 0.75 pence at the start of the period to 0.96 pence at the end and to 1.95 pence as at 7 June 2021. 

In recent months, the company said it has also taken the opportunity to invest in pre-IPO situations which, it believes, complements its investment strategy, ‘particularly given the current buoyant equity markets and enables us to maximise the returns to shareholders.’ 

The Board said it is seeing an increasing number of pre-IPO investment opportunities where there is the potential to achieve gains between the pre-IPO stage and a listing or exit. To date, it has already commenced this strategy with its investment in Pluto Digital Assets, a technology firm operating in the digital assets sector, and cyber security firm Smarttech247. 

The Board said it plans to deploy further funds into these opportunities and to continue to invest in structured products in order to provide a balanced portfolio hence the rationale for recently raising £1.6m of new funds at a price in line with market from its shareholders. 

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Shares in RiverFort Global Opportunities have more than doubled in value since the beginning of 2021. The stock was trading 1.82% lower today at 1.89 following the news. 

Reasons to RGO

RiverFort Global Opportunities is an AIM-listed investment company focused on seeking to generate returns for shareholders through capital growth and income by way of dividends and provides equity-linked debt funding to public and private small cap growth companies.   

The company told investors in November that it was targeting a 7.5% gross yield for the financial year ending 31 December 2020, based on its market capitalisation at the time, commencing with the payment of a gross interim dividend of 0.02 pence per share.   

Phillip Haydn-Slater, Non-executive Chairman said at the time, "This is a very significant step in the continued progression of the Company.  We hope that shareholders will be happy with the progress that the Company has made to date and we look forward to welcoming new investors seeking income as well as capital appreciation from their investments."  

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