The price of shares in AIM-listed Asian investment vehicle Adamas Finance Asia (LON:ADAM) plunged 12.28% to 25p (as of 14:45 BST) after it booked a wider net loss for the six months ended 30th June. Total income for the period dropped by 4.8% and cash on hand was 45% lower at the period end compared to a year earlier.
Chairman John Croft commented: “The Company’s portfolio has remained resilient in the face of the headwinds created by COVID-19, with the underlying valuations being mostly unaffected. The Company is confident in the current valuations moving forward mainly because ADAM’s investments are consistently structured with downside protection, as well as their diversified nature, and their location in a region which has learned well from previous outbreaks and is now reopening and recovering.
“Nevertheless, as with most businesses globally, many of the companies that represent our investment portfolio have in some way been affected in the first half of 2020 by COVID-19 either by lower than expected income or delays resulting from lockdown situations in different countries. Our companies have reacted to protect their businesses by lowering costs and taking measures to diversify revenue sources where possible. Notwithstanding these initiatives, we have observed that the overall impact of the pandemic in Asia applied across almost all countries and all sectors. Our current expectation is that as the effects of the pandemic recede across the region towards the end of 2020 and into 2021, the underlying investments in our portfolio will in turn experience improved operating conditions“.