Significant progress for Adamas Finance Asia – Adamas Finance Asia has reported interim results for the six months ended 30 June 2017.
Highlights:
- Net loss of US$1.03 million (H1 2016: US$454,000
- Unrealised fair value gain on asset portfolio of US$337,000 (H1 2016: US$280,000)
- Consolidated loss per share of US$0.54 (H1 2016: US$0.24)
- Consolidated NAV at 30 June 2017 of US$76.8 million (31 December 2016: US$77.8 million)
- Major disposal of legacy asset generating over US$15m of cash available for re-investment
- Appointment of Harmony Capital as new Investment Manager in May 2017
- Shareholder approval of changes to Investing Policy
Chairman of Adamas Finance Asia, John Croft, commented: “The first half of 2017 was one of significant change for the Company as it started to reposition for future growth following the appointment of a new Investment Manager in May and a broadening of the Investing Policy which was approved by shareholders. Activity included the disposal of the Tian Tong Shan Villa Project, generating in excess of US$15m in cash now available for re-investment. Additionally, post the period end, the Company recently announced the disposal of its investment in Global Pharm for a cash consideration of US$15.6m. These two disposals represent a significant step forward and, subject to completion of the Global Pharm disposal, provide the Company with substantial cash resources to be deployed into new investments. These proactive actions taken by the Board have provided us with a much firmer and more positive platform from which to grow the business.
As mentioned at the time of our 2016 final results in June, we have plans to strengthen the Board with some new key appointments. I was therefore delighted to announce the appointment of Hugh, Viscount Trenchard to the Board shortly after our 2016 final results announcement. Hugh brings a wealth of experience in Asia and a wide network of contacts, as well as insights that will help shape the Company’s new investment strategy and development in the future.
I am confident, with our new strategy and Investment Manager in place, that we will be able to announce further progress during the remainder of 2017.”
The disposal of the Tian Tong Shan Villa Project resulted in a write down of US$32.0m in the 2016 accounts. During this reporting period, Adamas announced receipt of US$15.1m in cash in part settlement of this transaction leaving a balance of US$1.8m which has been converted into a zero-coupon two-year loan. After the period end, they announced the disposal of the interest in Global Pharm for a cash consideration of US$15.6m. The carrying value of the interest in Global Pharm was written down to US$15.6m as at 30 June 2017, resulting in a loss of US$1.7m being recognised in the income statement for the interim results. As at 30 June 2017, the market value of the fund’s listed investments had risen by US$1.4m since 31 December 2016.
ADAM : Significant progress for Adamas Finance Asia