Bermuda First Investment Company Ltd (BFIC) recorded a $0.8 million profit for the first six months of its fiscal year — but saw the value of its investments fall by $4.3 million.

The company, which invests in a variety of Bermuda Stock Exchange-listed companies including Ascendant Group Ltd, KeyTech Ltd and Argus Group Holdings, said the unrealised losses seen in BFIC’s investment portfolio highlighted “the difficult conditions” local companies face.

BFIC added: “There is a feeling that the rate of decline has slowed and perhaps the economy will flatline in the short to medium term. There is definitely renewed interest in undertaking business in Bermuda and we hope that this will positively impact the performance of our investments.”

BFIC booked revenue of $1.6 million during the six months through December 31, 2014 and has recommended an interim dividend of 20 cents per share.

As of September 31, 2013, its investments were valued at $39.9 million.

“During the quarter the company did not materially add to its investments,” BFIC chairman J Michael Collier said. “The fall in market value of the portfolio and in particular in the price of Ascendant shares has negatively impacted the company’s investment value but we remain well positioned to benefit from any improvement to the Bermuda economy and as such are pleased to declare an interim dividend of 20 cents a share.”

Shares of Ascendant Group, owner of electricity provider Belco, fell almost 15 percent in 2013, according to BSX trading records.

At the end of last year, BFIC owned 10.4 percent stake in Ascendant, valued at $11 million.

“We would expect the results to show that the company’s performance continues to be affected by Bermuda’s economy,” BFIC stated. “The key for Ascendant will be to see how far forward they have moved with their strategic plan and whether there is buy-in from the Bermuda Government, which will enable them to progress with their required investment.”

BFIC also holds KeyTech shares worth $25.7 million as of the end of 2013, representing a 30.1 percent stake in the company. KeyTech, which owns Logic Communications and the Bermuda Telephone Company, among other telecommunications interests, saw its share price fall 5.7 percent in 2013.

BFIC commented: “It is clear that the KeyTech businesses continue to be affected by Bermuda’s macroeconomic situation and the increasing regulatory burden, as witnessed by the recent complaint by Logic to the Regulatory Authority that Digicel’s free internet for a year offer to all new, or recent, postpaid subscribers to mobile voice and data services was predatory and anti-competitive.

“The change in regulations with the issuance of Integrated Communications Operating Licence has caused carriers to slash internet prices by as much as 50 percent. This is obviously affecting Logic’s revenues given they control 80 percent of the market and have had to respond to maintain market share.

“However, we believe that KeyTech remains well positioned in a number of its businesses to benefit from an improving economy and future technological changes.”

BFIC owns a 3.4 percent stake in insurer Argus Group, valued at $3 million at the end of 2013. The investment company commented on Argus’ $1.6 million net income for the six-month period ended December 1, 2013, during which time the company was impacted by unrealised losses within its fixed-income securities portfolio.

“It was important to see the core earnings remaining consistent due to high client retention levels,” BFIC commented. “The results, while disappointing, continue to highlight that Argus is recovering from its previous problems and we look forward to further progress in the current part of the year.”

BFIC also holds smaller investments in Butterfield Bank, West Hamilton Holdings Ltd, Bermuda Aviation Services Ltd and Watlington Waterworks Ltd.