BFIC reports half-year profit of $300,000
Bermuda First Investment Company Limited has reported a six-month profit of $300,000.
That figure includes an unrealised profit of $900,000 as of December 31, 2016.
The investment holding company has investments in a number of Bermuda companies listed in the Bermuda Stock Exchange, particularly in One Communications and Ascendant Group.
In the second half of 2016 it achieved revenue of $300,000. The value of its investments at the end of 2016 was about $26.2 million.
Michael Collier, chairman of BFIC, said: “There was little change in the value of our investments during the quarter but post the period end, the company disposed of its entire holding in Argus, generating a profit of $800,000. We believe that our investments continue to gradually improve and it is pleasing to see that they have introduced shareholder-friendly initiatives such as share buy-backs.
“We look forward to Bermuda hosting the America's Cup in two months' time which should be a catalyst for a positive period for our investments.”
For the final quarter of the year, ending December 31, the company reported revenue of $200,000 and an unrealised gain on its investments of approximately $400,000, relating to the movement in the value of the company's investments between October 1 and December 31.
Total expenses were $400,000 with $300,000 interest expense on the company's unsecured 2019 loan notes. Its undiluted earnings per share for the quarter was ten cents.
At the end of 2016 the company had net bank debt of $4.5 million and unsecured long-term seven-year loan notes, that it issued to its founder shareholders in October 2012, of $15.2 million.
The company intends to delist its shares and loan notes from the Bermuda Stock Exchange on May 29.
The directors recommended the move to BFIC shareholders and loan note holders, noting the limited number of shareholders and loan note holders meant there was a lack of trading and the cost of the listings on the Index was no longer economic.
The company said shareholders and loan note holders had agreed with the directors' recommendation.