Primorus swings to loss as it looks for 'exciting' new investments

Primorus Investments reported an operating loss of £0.12m in its first half on Friday, swinging from £3.29m profit year-on-year.

The AIM-traded firm said total assets including cash at period end on 30 June amounted to £9.17m, up from £8.09m a year earlier.

It described its balance sheet as "strong", with no debt.

"The last six months have been a very busy time at Primorus," said chairman Rupert Labrum.

"The board has spent considerable time reorganising the company and its balance sheet to provide investors with what it believes to be a low cost, high impact strategy underpinned by the revised investing policy.

"The board has reduced the overall operating costs, appointed a new chief executive, fully appraised all the current investments, and pursued new investment opportunities."

Labrum said the results of the appraisal of the firm's existing investments led to it increasing its holdings in Fresho and Engage which, along with Zuuse, were the three companies from investments made before November 2020 that the directors believed would deliver the greatest shareholder returns.

In addition, in April Primorus made a new investment into Mustang Energy to gain exposure to the vanadium flow battery storage market.

The board said it believed that the sector, along with other forms of renewable energy and clean technology, was going to be a "financially rewarding market" to be invested in.

"The board remains confident that significant opportunities exist for the company going forward," Rupert Labrum said.

"We look forward to the remainder of 2021 being a period in which we can further demonstrate our business model which is now underpinned by the new investing policy."

Primorus' directors were currently reviewing several "exciting" investment opportunities that were aligned with its new investing policy, Labrum added.

"The board has been screening several opportunities and has identified at least one that could begin to generate value for shareholders this calendar year."

At 0823 BST, shares in Primorus Investments were up 2.56% at 4p.