Braveheart returns to black as new strategy pays off
Perth-based fund manager Braveheart Investment Group has posting a £475,000 profit for the six months to September 30.
The result means the reversal a £1 million loss registered the previous year and the firm’s largest foray into the black since its 2008 flotation.
Revenue for the period reached £562,000 while operating costs were halved to £435,000.
Chief executive Trevor Brown said the results heralded “a new chapter for our shareholders”.
Addressing those shareholders in his results statement, Mr Brown said Braveheart’s new strategy of directing its “relatively limited resources” into companies familiar to the group that have been identified as having “excellent growth prospects” would offer a better opportunity to generate “exceptional returns” than a modern portfolio theory.
He said he believed that “the strategic portfolio” could result in significant returns over the next few years, while also acknowledging that the policy did expose the group to the risk of increased volatility.
“We firmly believe that our active management approach and depth of knowledge of the businesses materially skews the risk of returns towards a positive return outcome,” he said.
Mr Brown also said the group would seek exits wherever possible and appropriate having In sold its holdings in mLED to a US-based technology company, generating £399,000 last month.
The last 12 months have also seen Braveheart increase its shareholding two scientific firms; York-based scientific instrumentation firm Paraytec to 33 per cent where it has also appointed a new director, and Kirkstall to 28 per cent.
“We believe that the reconstruction, provision of a director and further investment in each of these companies will enable them to accelerate growth and maximise their potential,” said Mr Brown.
Braveheart has holdings in a further 13 businesses, including a holding in an AIM-listed company which it obtained upon the acquisition of Ridings Holdings in January 2016.