Business
Audited Annual Accounts to 30 September 2024
Audited Annual Accounts to 30 September 2024.
About this update from Richmond Hill Resources Plc
[{"type":"text","content":"\n\n \n \n\n\n\n\n Richmond Hill Resources Plc(\"Richmond Hill\" or the \"Company\")Audited Annual Accounts to 30 September 2024Following extensive review and deliberation by the Board regarding Shareholder value and the long-term success of Richmond Hill Resources Plc (hereinafter referred to as \"the Company\" or \"Richmond Hill\"), it was determined, post year end, that the Company's continued investment in the drinks industry is not and will not deliver sufficient value and they have formally taken the decision to dispose of the Companies interests in subsidiaries in the beverage industry post year end. The directors noticed a reduction in market support for beverage companies generally, especially in relation to those companies in the small and micro-cap segment. This sentiment has been evident across many stock exchanges in multiple jurisdictions, with markets even witnessing the delisting of beverage giants such as Britvic PLC (voluntarily delisted from the London Stock Exchange with a market cap of ~3.3billion) and Diageo PLC (voluntarily delisted from Euronext Ireland and Euronext Paris). The Directors consider market conditions to be particularly difficult for listed beverage companies in the sub £50m category and note delistings from companies such as British Honey Company PLC and East Imperial PLC. The Company does not expect this trend to change in the foreseeable future and it was therefore a key factor in the decision to propose to dispose of the Companies interests in subsidiaries in the beverage industry post year end.As with many early stage small drinks companies, Richmond Hill is not cash flow positive and would be unlikely to become cash flow positive in the short to medium term. The Company has fixed overheads that are too large given market sentiment and the stage that the Company is at in its life cycle, which overshadow the quality of the Company’s drinks portfolio. Because of this, the current share price of the Company on Aquis does not, in the opinion of the Directors, reflect the true value of the Company’s Assets.The Company does not believe its current challenges will change within a timeframe which will make retaining its current investment strategy viable. Conversely, the Directors believe a change of strategy to the natural resources market will increase the likelihood of being able t...