Pires Investment PLC on Wednesday said net asset value per share decreased, and it swung to a loss in a ‘testing’ year for the small-cap listed companies in which it invests.
Pires invests in technology companies, with a focus on artificial intelligence.
NAV per share was 4.28 pence per share on December 31, down 6.0% from 4.56p a year before.
NAV increased by 8.3% to £7.8 million from £7.2 million, but Pires has more shares on issue after a £500,000 equity raise back in August.
Pires said it continues to believe its NAV ‘does not fairly represent the company’s financial potential, given the scope for significant valuation uplift of the companies within the portfolio’.
What’s more, its shares trade at a 57% discount to NAV. The stock was down 1.4% at 1.83 pence in London on Wednesday morning and is down 62% over the past 12 months.
Shareholders in Pires back in June last year rejected a takeover offer from fellow AIM listing Tern PLC at 8p per share, and Pires’s share placing in August was at 4p.
Pires swung to a loss of £370,000 in 2022 from profit of £1.5 million in 2021, partly due administration costs associated with the Tern offer. More importantly, its gain on investments declined to £420,000 from £2.1 million.
‘Whilst 2022 has been a difficult year, the company believes that it has managed to safely navigate its way through the period relatively unscathed,’ said Director Nicholas Lee.
‘We believe that our investment strategy in the technology sector has already proven to have been successful. Going forward, the company is well position as a leading next generation technology investment company with an exciting portfolio of technology companies that have the potential for significant growth and the delivery of real returns for shareholders.’
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