There is a new mood of optimism at Lloyd Fonds AG (DE:L1OGk). After last year’s missed profit forecasts and strategic disagreement, current ambitious restructuring of its business activities and senior management has been welcomed by investors, as evident in the recent successful €4m equity issue. By repositioning towards open-end liquid investment products, Lloyd Fonds seeks to reduce reliance in particular on its core shipping market, which remains very challenging. Pending implementation of these changes (further details due at the imminent AGM), 2018 guidance is for net profit slightly below the depressed level of 2017 (€1.4m).
Change is in the air
Lloyd Fonds’ proposed refocusing away from alternative real assets to open-end and liquid investment products such as equity funds is being supported by a key management change and its two new anchor shareholders, notably DEWB, a long-established listed private equity company. It is being funded by a recent capital increase (€3.8m from a private placement of 0.9m shares at €4.20) and subject to shareholder approval, by reinvestment of the 2017 surplus rather than payment of a dividend. Management’s “comprehensive package of reorientation measures” is to be presented at the AGM on 16 August.
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