Blue Star Capital PLC moves into the black

() has revealed it moved into profit in the year to September 30, 2020, after a sharp increase in the value of its investment portfolio.

The investing company with a focus on esports, technology and its applications within media and gaming said the portfolio was valued at £9.06mln as at the end of September, up 78% from £5.10mln a year earlier.

The increase comes from an investment of roughly £1.7mln in seven esports businesses and an increase in value over the period of around £2.2mln.

The investment group recorded a £2.06mln uplift in the fair value of its investments in the most recent fiscal year compared to a write-down of £399,748 the year before. This contributed to a profit before tax of £1.71mln versus a loss the previous year of £684,964.

The company had cash of £132,167 at the end of September, 2020, up from £132,167 12 months earlier. Since the end of the reporting period, the company has raised £95,000 through warrants being converted into shares.

The group said its board believes the company’s portfolio has developed significantly during the year with the diversification into esports proving a strong strategic move. Meanwhile, the company’s historic tech payment investments in SatoshiPay and Sthaler continue to make strong progress and 2021 is expected to be the year of commercialisation for both businesses.

“The company has enjoyed an excellent year with diversification into the fast-growing esports sector and strong progress at our tech payments businesses. We consider the portfolio to be well-positioned to maintain this growth in the coming year and we look forward to the updating the market as the year progresses,” said chief executive officer (CEO) Tony Fabrizi, who will be stepping down from the role once a new non-executive director has been appointed.

Chairman Derek Lew will assume the role of CEO when Fabrizi departs.