Dunedin Enterprise Investment Trust
PLC (Company No SC52844) - Quarterly Update
Whilst there is no longer a
requirement to publish an Interim Management Statement ("IMS") the
Board of Dunedin Enterprise Investment Trust PLC ("Dunedin
Enterprise") has decided to continue to provide an update on the
net asset value of the Trust in a similar format as previously
provided in the IMS on a quarterly basis. This net asset value
update is as at 30 September 2015.
1. Unaudited net asset
value per share
The unaudited net asset value per
share at 30 September 2015 was 512.0p. This represents an increase
of 1.3% from the level at 30 June 2015.
2. Share price
The share price has increased by
4.7% from 316p to 330.9p in the quarter to 30 September 2015. This
compares to a decrease in the FTSE Small Cap Index of 2.4% over the
same period. The discount to net asset value at 30
September 2015 was 35.4%.
3. Balance
Sheet
The unaudited balance sheet as at 30
September 2015 is noted below:-
|
£'m
|
Investments:-
|
|
Dunedin managed
|
91.9
|
Third party managed
|
15.6
|
|
|
|
107.5
|
Cash and near cash
|
0.1
|
Other assets and
liabilities
|
(1.9)
|
|
|
Total net assets
|
105.7
|
|
|
Net asset value per share
(p)
|
512.0
|
4. Net asset value
movements
The portfolio of investments has
been re-valued at 30 September 2015. The increase in net asset
value in the quarter can be attributed to:-
· an increase in the value of Dunedin managed investments
totalling £0.6m. There have been valuation uplifts at
Hawksford (£1.3m) and CitySprint (£0.9m) both as a result of
earnings growth and lower net external debt. The valuation of
Blackrock (£0.8m) has been moved from cost to an earnings basis
reflecting the strong trading performance of the company.
These increases have been offset by a provision for carried
interest payable on the Equity Harvest Fund (£1.3m) and a reduction
in maintainable earnings at Pyroguard (£0.8m) due to production
issues which are being addressed. Equity Harvest
Fund was raised in 2002 with a 7% hurdle and an 80/20 split between
limited partners and general partner on profits over and above the
hurdle. The fund has gone past the hurdle for the first time
at 30 September 2015.
· Within the third party managed funds both Realza (£0.7m) and
Innova/5 (£0.4m) contributed to the overall increase of £1.1m in
the third party managed funds.
· Management fees and banking costs contributed a reduction in
net assets of £0.3m.
5. New
investment and realisations
New investments in the quarter
totalled £1.0m. Management fees accounted for £0.8m of this
total with a further £0.2m follow-on investment made into
Red.
A total of £0.1m was realised in the
quarter following the repayment of bridging finance supplied by
Innova/5 to a portfolio company.
6. Cash and
Commitments
The Company had cash and near cash
balances of £0.1m at 30 September 2015. In addition the
Company has a revolving credit facility of £20m available until 27
February 2017.
As at 30 September 2015 the Company
has outstanding capital commitments to limited partnership funds of
£56.4m of which it is forecast that approximately up to £34m will
be drawn over the next three years.
Following the quarter end the
Company utilised £3.5m of the £20m bank facility. The Board
and Manager remain satisfied with the balance between available
credit facilities and outstanding commitments given the expected
rate of new investment and potential realisations of existing
investments.
7. Outlook
The Manager continues to see a
strong level of new investment opportunities, although competition
is robust and pricing is high when compared to that experienced
historically.
Advisers have been appointed by
several portfolio companies to assist in their sale. Progress
is being made in these processes in order to maximise value for
shareholders and capitalise on the favourable exit environment for
private businesses.
For further information on Dunedin
Enterprise please go to www.dunedinenterprise.com