It also reported consolidated profits before tax for the period rose to £117m, made up of a £81.5m net capital appreciation on the group’s assets as well as net revenue of £35.5m. This compares with a figure of £33.0m for the same period in the last financial year, made up of £2.4m net capital appreciation and £30.6m of net revenue
In addition, its equity portfolio rose 3.4% with greater volatility on the stock markets leading to renewed buying opportunities.
Increased revenue included rental income from its increased property portfolio and fees from asset management activities in private equity and Asia-Pacific subsidiaries.
The Company continued to diversify assets across different asset classes over the half year. At the end of the period, 86.5% of the Company’s assets were invested in quoted equities, with 4.2% in private equity, 3.5% in property, 3.3% in cash and other net assets, 0.9% in fixed income and 1.6% in subsidiaries.
Chief executive Alan Harden said, “We enjoyed steady growth over the six months despite some sharp moves on the stock market in late February and late July. More importantly, we acted boldly as value started to emerge in the quoted equity markets where we were a decisive and active buyer, particularly at the end of the period and afterwards.
“We also made good progress in our objective of diversification, increasing our exposure to private equity and property. We remain convinced the best use of company capital is to continue seeking diversification of our assets beyond quoted equities into areas such as commercial property with strong rental yield, venture capital or private equity partnerships with prospects for medium and long-term growth and returns, and our fast-growing subsidiaries, which can generate fees and revenue that are not directly correlated with the stock markets.”
