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- Adamas Finance Asia not expecting material impact with Asian countries better positioned
Over Adamas Finance Asia’s (ADAM) full-year results period to 31 December 2019, the company’s NAV increased by 8% year-on-year driven mostly by a new investment which was acquired in exchange for the issue of the company’s shares. Highlights from post period-end activity include:
John Croft, ADAM’s chairman, commented: “The board expects the company’s investment portfolio in 2020, from a valuation perspective, to avoid any material impact from covid-19. Many of the countries in which our portfolio companies operate, including China and Hong Kong, are exhibiting early signs of recovery with the gradual lifting of lock-down measures. Moreover, most Asian countries are benefiting from the experience gained from previous pandemics in the region.
We continue to draw comfort from this and the expertise, networks and robust risk management processes of our manager, which leaves the company well placed to come through this period stronger and to protect and grow the value of the business.
We are seeing an increasing number of attractive investment opportunities partly driven by the global impact of covid-19. The Asian SME sector was starved of capital prior to the impact of covid-19 and this financing gap will likely continue to widen in the short term, thereby further constraining their access to capital. ADAM is one of very few institutional sources of capital for this sector in the region and we are already seeing a very significant increase in pipeline opportunities as a result.
In 2020, we anticipate that income from our portfolio will continue to increase bringing us nearer to commencing dividend payments and I remain confident in the outlook for the business and of delivering value to our shareholders over the short and longer term.”
The board expects the company’s investment portfolio in 2020, from a valuation perspective, to avoid any material impact from covid-19. Many of the countries in which our portfolio companies operate, including China and Hong Kong, are exhibiting early signs of recovery with the gradual lifting of lock-down measures. Moreover, most Asian countries are benefiting from the experience gained from previous pandemics.
We continue to draw comfort from this and the expertise, networks and robust risk management processes of our Investment Manager, which leaves the company well placed to come through this period stronger and to protect and grow the value of the business.
We are seeing an increasing number of attractive investment opportunities partly driven by the global impact of covid-19. The Asian SME sector was starved of capital prior to the impact of covid-19 and this financing gap will likely continue to widen in the short term, thereby further constraining their access to capital. ADAM is one of very few institutional sources of capital for this sector in the region and we are already seeing a very significant increase in pipeline opportunities as a result.
The fact that our investment focus is diversified across sectors as well as geographies also ensures we can cherry pick the best deals without being constrained by a narrow investment strategy.
In 2020, we anticipate that income from our portfolio will continue to increase bringing us nearer to commencing dividend payments to our shareholders and I remain confident in the outlook for the business and of delivering value to our shareholders over the short and longer term.”
ADAM: Adamas Finance Asia not expecting material impact with Asian countries better positioned
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