KEY POINTS:
Viking Capital lost $3.5 million in the six months to December - better than previously forecast - because of a writedown on its investment in finance company Dorchester Pacific.
The investment company said on Friday that Dorchester's shares almost halved during the trading period.
The 7 per cent stake was written down by $4.3 million. The shares were on Viking's books at $2.29 each at March 31, but closed on Friday at 90c.
"We continue to actively sell the parcel, as stated previously, the decision making of Dorchester continues to disappoint," Viking chairman Brent King said. "The statements from Dorchester give some hope of them returning to profitability and regaining market confidence.
"When this occurs the price should return to at least net asset value." King said he was pleased with Viking's stake in Investment Research Group, which he said had made substantial progress over the past six months.
Its other big investment, ICP Bio, "had continued to make substantial progress in the six-month period with the balance sheet being significantly restructured".
King said Viking would have had a profitable period but for the Dorchester writedown.
He estimated Viking's net assets at 23c against its share price of 16c.
The company's balance sheet was very strong and the company was in a position to look at new investment opportunities, King said.
"We are positive for the second six months and there are some interesting opportunities being presented to Viking Capital."
- NZPA