Somers Limited, the Bermudian-based investment holding company, has reported a net loss of £21.4 million for the six months ended March 31 (2022: net loss of £47 million) resulting from unrealised foreign currency losses and a slight decrease in the market value of its investment portfolio.

It released its interim report for the half-year in a filing with the Bermuda Stock Exchange, which revealed shareholders’ equity was £281.7 million (September 30, 2022: £303.2 million).

Net asset value per share was £11.54 (September 30: £12.42).

Somers reported a gearing ratio of 30.5 per cent (September 30: 24.1 per cent).

Waverton Investment Management Group Limited, Somers’ largest investment, reported funds under management and administration of £13.3 billion.

Resimac Group Limited announced normalised net profit after tax of A$40.7 million and home-loan assets under management of A$14.7 billion for the six months ended December 31, 2022.

Aura Group announced gross funds under management and administration of A$2.5 billion as at March 31, which is an increase of 48 per cent year-on-year.

Peter Durhager, chairman of Somers, said: “The first half of the year has seen our investments adjusting to the new environment of higher interest rates and the impact that this has on their business models.

“We are pleased with their underlying performance and even though valuations were impacted during the first half of the year, we expect them to recover as the strength of their performance is recognised.

“There remain significant opportunities within the financial services sector and with its modest level of gearing, Somers is well positioned to take advantage of such opportunities.”

Following changes in the composition of its investment portfolio, the company said it had determined that its functional currency was pound sterling and had changed its reporting currency from US dollar to sterling effective October 1, 2022.

It said the move to reporting the company’s results in sterling should reduce foreign exchange volatility given that more than 50 per cent of the portfolio is denominated in sterling.

During the first half of the year, Somers’ investment portfolio reduced to £333.2 million (September 30: £338.5 million) owing to the increasing interest rate environment and the impact on the valuations of financial services companies.

Consequently, the company recorded a £13.2 million loss on its investment portfolio (2022: loss of £67.3 million).

During the period, the company wrote off its investment in MJ Hudson following the sale of the business at a level that is unlikely to result in a return to shareholders once the company’s debt is repaid.

Net foreign exchange losses were £12.3 million for the half year (2022: gain of £10.2 million).

Somers’ total assets decreased to £370 million (September 30: £379.3 million) due to the valuation decreases and currency movements.

The investment portfolio was £333.2 million as at March 31 (September 30: £338.5 million) with equity investments (£326.6 million) accounting for 98 per cent of this total. The remaining portfolio investments consisted of other financial investments.

Within investments, Waverton at £133.2 million, Resimac at £106 million, and ICM Mobility at £47.6 million together represent 86.1 per cent of total investments.