London City Equities reveals a strong half-year performance with an 18% rise in investment portfolio values and a favourable legal development involving Excelsior Capital. The company anticipates increased liquidity and is actively seeking new long-term investments.
- Investment portfolio values increased by 18% in H1 2025
- Capital gain of $5.6 million from sale of Fiducian Group shares
- Positive legal outcome leads to Excelsior Capital’s internal managed liquidation
- Shareholders’ equity rose to $27.9 million with net assets per share at 88 cents
- Company preparing for substantial liquidity post-liquidation and ongoing investment research
Strong Portfolio Performance
London City Equities has reported a robust increase in its investment portfolio values, rising by 18% over the six months to 31 December 2025. This growth was achieved despite a rise in passive key trading bank securities, highlighting the resilience and strategic positioning of the company’s holdings. A significant contributor to this gain was the final sale of its long-term stake in Fiducian Group, which generated a capital gain of $5.6 million.
Balance Sheet and Shareholder Value
The company’s shareholders’ equity increased to $27.9 million, up from $23.6 million a year earlier, with net assets per share improving to 88 cents from 75 cents. This reflects not only the capital gains but also the company’s prudent management of dividends and tax losses. Cash and cash equivalents nearly doubled to $17.1 million, positioning London City Equities well for future investment opportunities.
Legal Victory and Strategic Implications
A pivotal development during the period was the positive turn in legal proceedings against Excelsior Capital, in which London City holds a 9% stake. Excelsior proposed an internal managed liquidation in exchange for London City withdrawing its Federal Court litigation scheduled for trial in February. This move aligns with London City’s objective to resolve the dispute efficiently. Following the announcement, Excelsior’s shares surged by 30%, reflecting market optimism about the proposed liquidation and capital return plans.
Looking Ahead
With the Excelsior liquidation process underway, London City Equities expects to hold substantial liquid funds upon its completion. The company is actively conducting investment research to identify long-term opportunities that meet its stringent criteria. While a modest performance fee has been accrued, its final assessment will be made in the June accounts, leaving some financial details to be clarified in the coming months.
Bottom Line?
London City Equities’ strong half-year results and legal progress set the stage for a potentially transformative liquidity boost and fresh investment initiatives.
Questions in the middle?
- How will the internal managed liquidation of Excelsior Capital impact London City’s future earnings?
- What new investment opportunities is London City Equities targeting with its anticipated liquidity?
- When will the performance fee be finalised, and how might it affect the company’s profitability?