Braveheart swings to loss in 'challenging' year

Shares in Braveheart Investment Group were in the red on Friday morning, after it reported a significant shift in its financial performance in its final results.

The AIM-traded company recorded a loss per share of 11.38p, swinging from earnings per share of 2.68p in the prior year.

At year-end on 31 March, Braveheart's cash balance stood at £1.74m, up from £0.93m at the same point in 2023.

Despite its improved cash position, the firm posted a pre-tax loss of £8.19m - a substantial reversal from the pre-tax profit of £2.36m reported for the previous year.

These results reflect a challenging financial year for Braveheart, marked by a transition from profitability to a significant loss.

“Despite the challenging conditions in the economy and capital markets, our strategy remains unchanged - to invest shareholder funds in businesses that we believe possess specific characteristics capable of generating exceptional returns on disposal,” said chief executive officer Trevor Brown.

Brown noted that on 15 May, the company announced that following a review of the value of its portfolio investments, a decision was made to write down the value of its equity investments in Paraytec and Kirkstall to zero in the 2024 accounts, which was implemented following completion of the audit.

“The board believes that, with time, Paraytec and Kirkstall could have the potential to increase in value and thereby provide exit opportunities for the company.

“The board has also implemented a range of actions to rationalise the company's cost base and to conserve cash, which stood at approximately £1.74m on 31 March.

“These actions include reducing operational overheads and management costs to reflect the changing needs of the business.”

At 0930 BST, shares in Braveheart Investment Group were down 5.76% at 4.71p.

Reporting by Josh White for Sharecast.com.