Business
Annual Financial Report
Annual Financial Report.
About this update from Livermore Investments Group Limited
[{"type":"text","content":"\n \nRNS Number : 7275Z Livermore Investments Group Limited 22 May 2019 \n\nHighlights\n· Net profit for the year was USD 5.2m (2017: USD 16.4m).\n· Net Asset Value per share remains stable at USD 1.00 (December 2017: USD 1.00).\n· At 15 January 2018, the Company announced an interim dividend of USD 8m (USD 0.04576 per share) to members on the register on 26 January 2018. The dividend was paid on 23 February 2018.\n· CLO portfolio and warehouse generated USD 29.7m in distributions and USD 14m in net gains in 2018. \nChairman's and Chief Executive's Review\nIntroduction\nWe are pleased to announce the financial results for Livermore Investments Group Limited (\"Livermore\" or \"the Company\") for the year ended 31 December 2018. References to the Company hereinafter also include its consolidated subsidiaries (note 8). \nThe year-end NAV was USD 1.00 per share (2017 NAV: USD 1.00 per share). Net profit for the year was USD 5.2m (2017 Net Profit: USD 16.4m).\nThe Company recorded net gains of USD 14m from its US CLO and warehousing portfolio. Management took advantage of lower funding costs to reduce the cost of financing or extend some of its CLO positions as well as created new CLOs with long reinvestment periods at very low cost of financing in early 2018 as well as sold some of its short reinvestment period positions. Interest and distribution income from the financial portfolio totalled USD 31.5m (2017: USD 28.0m).\nReferences to financial statements hereinafter are to the Company's consolidated financial statements.\n \nFinancial Review\nThe NAV of the Company at 31 December 2018 was USD 174.3m (2017: USD 175.4m). Net profit, during the year was USD 5.2m, which represents earnings per share of USD 0.03.\nAdministrative expenses were USD 8.9m (2017: USD 6.2m).\nThe overall change in the NAV is primarily attributed to the following:\n\n\n\n \n\n\n31 December 2018\n\n\n \n\n\n31 December 2017\n\n\n\n\n \n\n\nUS $m\n\n\n \n\n\nUS $m\n\n\n\n\nShareholders' funds at beginning of year\n\n\n175.4\n\n\n \n\n\n157.2\n\n\n\n\n \n\n\n___________\n\n\n \n\n\n___________\n\n\n\n\nIncome from investments\n\n\n31.5\n\n\n \n\n\n28.0\n\n\n\n\nRealised losses ...