Financial services investment holding company Somers Limited has reported a $24.4-million first-quarter loss on its investment portfolio (2020: gain of $179.9 million), driving net asset value per share at the end of December down to $26.32 (September 30, 2021: $27.70).

Shareholders’ equity was $586.5 million (September 30, 2021: $617.8 million).

Somers’ investment portfolio reduced 3 per cent due to stock market volatility, the company said.

This resulted in a net loss in the quarter of $22.5 million (2020: gain of $190.0 million) and the resultant loss per share was $1.01 (2020: earnings per share of $8.90).

The unrealised loss was principally due to a decrease in the value of the company’s largest investment, Resimac, whose share price decreased 8.5 per cent during the quarter despite continuing to report strong underlying performance.

The company said a number of its larger investments continued their strong progress, although market volatility had a negative impact on valuations.

Commenting on the financial results, chairman Peter Durhager said: “The first quarter of the financial year was characterised by volatility in the stock markets which has noticeably increased into 2022.

“Whilst our investee companies continue to perform well, the listed share prices were under pressure during the quarter. As a result, our NAV per share decreased by 5 per cent to $26.32.

“As global central banks commence and contemplate raising interest rates in 2022 and remove excessive liquidity from the financial system, combined with Covid-19 transitioning from a pandemic to being endemic, we believe that bouts of volatility may be more commonplace.

“However, it is important to note that the business models of our investee companies remain sound, and Somers is well positioned for this environment. The board remains cautiously optimistic.”

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Somers Limited - 2022-02-11- Reports First Quarter Results.pdf