London Finance & Investment Reports Dwindling Profits Amid Portfolio Value Changes

London Finance & Investment Group PLC, a prominent player in investment finance and management based in London, has revealed a significant drop in interim profit. This downturn is directly attributed to 'unrealised changes' in the value of their wide-ranging portfolio investments.

Substantial Decline in Profit

The company's half-year performance, ending December 31, witnessed a stark 56% plunge in its pretax profit, diminishing to GBP572,000 from the GBP1.3 million reported in the prior year. This decline underscores the substantial impact of the decreased carrying value of their general portfolio investments, which fell by 65% to GBP453,000 from GBP1.3 million.

Net Assets and Operating Income

Despite the fall in unrealised investment value, London Finance & Investment observed a 19% increase in net assets per share, reaching 70.3 pence, up from 59.2p. Additionally, the firm registered a slight uptick in operating income of 4.9%, amounting to GBP510,000 from the former GBP486,000.

Dividends and Earnings per Share

Even with the earnings taking a nosedive, the company declared an interim dividend of 0.60p per share, which indicates a 9.1% increase from the previous 0.55p. However, earnings per share capitulated by 52%, dropping to 1.5p from 3.1p.

Leadership and Strategic Moves

In a strategic leadership shuffle, David Marshall exits his role as Chair, handing over the mantle to Warwick Marshall, the current CEO of Marshall Monteagle PLC. Meanwhile, London Finance & Investment has also cashed in GBP6.3 million from Western Selection, following Western's move to reward its shareholders. With this infusion, London Finance aims to bulk up its general portfolio.

Market Presence and Performance

On the trading front, shares of London Finance & Investment remained static at 50.00 pence in London, last traded on Tuesday. The Johannesburg market echoed this inactivity, with the last trade happening on February 19 at ZAR11.70.

Profit, Investments, Shares