RRF assets remain stable, despite challenging market
RAPID Realisations Fund, the business investment fund run out of the North West, has announced that its net asset fund remained stable in 2009 despite “a particularly challenging year” for businesses.
Although based registered in the Channel Islands, AIM listed RRF is managed in Haydock by Cenkos Fund Managers.
The £60m fund, which has stakes in Preston bookmaker Taylormade and Manchester casual dining brand Barburrito, had a net asset value of 104.78p for the year to the end of December 2009, only slightly down on the previous year’s figure of 104.28p.
Chairman Peter Tom said: “Whilst there are now some tentative signs that the economy is emerging from recession, 2009 was a particularly challenging year for small and medium sized businesses based in both the UK and abroad.”
It completed three new investments during the year, totalling £4.7m, and made five follow-on investments worth a total of £3.5m.
One new company the fund invested in was Manchester Science Park-based Information Prophets, which provides energy efficiency software and consultancy service.
RRF said the company has made progress in developing its software product since the investment in early 2009, and is now well positioned to increase its share of this expanding energy compliance market.
Bookmaker Taylormade Betting, which received follow-on funding during the year, increased its number of shops from 16 to 22.
Meanwhile, Mexican fast-casual food business Barburrito is expects to open a minimum of three new sites in 2010, taking the total to six, with construction on the first of these already in progress.
Since the year end the fund said it had made follow on investments of £400,000 to two investee companies.
Mr Tom added that the continuing restricted availability of credit and general economic uncertainty meant the fund had seen an increase in demand for its type of growth capital funding.
The company said it had approved a share buy-back program and will use surplus cash reserves to repurchase shares and help increase its share price.
