- Investment company Argo group swung to an annual profit on higher revenue, but a sizeable drop in Argentina bonds in the back half of the year kept a lid on growth.

For the year ended 31 December 2019, the company reported a pre-tax profit of $1m, compared with a loss of US$1.2m on-year as revenue climbed to US$4.9m from US$4.6m.

Net assets fell to US$21.5m from US$23.3m.

Incentive fees doubled to US$0.6m driven mainly from its distressed credit fund, though this was offset by weakness from the collapse in Argentina bond prices.

'The Argo Fund performed well in the first six months of the year but in August 2019 a sizeable drop in Argentina bonds all but eliminated profits for the year. The distressed credit strategy in the Argo distressed credit fund did better, resulting in performance fees being paid to the management company,' Argo said.

'The real estate side of the business has successfully arranged the refinancing of its major asset in Ukraine with EBRD which will allow the faster payment down of the loan,' it added. 'Emphasis on cost control continues and in 2020 this will include taking all back-office operations to London and eliminating the Cypriot office.'

At 9:25am: [LON:ARGO] Argo Group Ltd share price was 0p at 24.5p

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