Increased overheads drag Adams to a loss

Technology and life sciences investment group Adams generated a gross investment return of €24,000 in the first half of its trading year, but overhead deductions and other assorted costs dragged the firm to a loss.

Adams posted a €98,000 loss after tax for the six months leading to 30 September, compared to the pre-tax profit of €24,000 it achieved twelve months earlier.

The company spent just over €1m on a new equity investment in oilfield services provider Petrofac, taking Adams' total investments to six at the end of the end of the period, with a combined value of just over €2m.

Yet Adams more than doubled its cash balances to €89,000 from the €41,000 it held at year-end on 31 March.

Shareholders approved a proposal from the group's directors in the period aimed at refocusing Adams' investment approach on more small to middle-market sectors across the UK and Europe as opposed to the previous focus on undervalued and pre-commercialisation projects and assets.

Looking forward, the group said, "Although the global economic cycle remains supportive of risk assets, the potential for volatility in capital markets remains. In particular, the alarming increase in China's debt and its likely slowing of economic growth and concerns about the direction of US foreign policy and trade reforms, are expected to have implications for the whole global economy."

"In addition, continued economic uncertainty post the Brexit vote, may impact currently reasonable Eurozone growth prospects," it added.

Performance per share slipped to a EUR 0.16 cent loss from the EUR 0.06 of earnings obtained a year earlier.

As of 1130 GMT, shares had soared 32.67% to 0.0796p.