Our opinion on the current state of LNFLondon Finance and Investment Group (LNF) is a UK-based entity specializing in management and finance operations across the UK, America, and Europe. The company is publicly traded on the London Stock Exchange (LSE) and is part of the Fledgling division on the Johannesburg Stock Exchange (JSE). In 2021, LNF held significant stakes in various companies, including 43.8% in Western Selection Plc (Western), 4.6% in Finsbury Food, and 11.69% in Northbridge. Western Selection Plc has a diversified investment portfolio in companies dealing in specialist industrial equipment, cosmetics, and toiletries, and holds a 12% stake in Bilby, a company engaged in maintenance and general building services. Finsbury Food Group operates as a manufacturer and supplier of cakes, bread, and morning goods to supermarket chains, marking LNF's involvement in the food industry.
In addition to these specific investments, LNF maintains a general portfolio encompassing interests across various sectors, including tobacco, chemicals, food, beverages, and natural resources. This diversified investment strategy reflects LNF's broad approach to asset management and finance.
For the six-month period ending 31st December 2023, LNF reported a revenue increase of 4.86%, although its headline earnings per share (HEPS) saw a significant decline of 51.61%. Despite this downturn in HEPS, the company's net assets per share experienced a notable rise of 19.1%, reaching 70.3p at the end of December 2023, up from 59.2p at the end of June 2023. LNF attributes part of this growth to strategic adjustments in its General Portfolio Investments, including additional net cash investments totaling £723,000 and realizing profits of £509,000, leading to an 8% increase in the fair value of its General Portfolio.
Despite these financial movements and strategic investments, LNF's shares are described as virtually untraded on the JSE, indicating limited liquidity and practicality for private investors seeking to engage with the company's stock in the South African market. This scenario underscores the challenges and considerations for investors looking at LNF's performance and market activity.
