Dunedin Enterprise Inv Trust PLC 1st Quarter Results (8639E)
May 11 2017 - 5:52AM
UK Regulatory
TIDMDNE
RNS Number : 8639E
Dunedin Enterprise Inv Trust PLC
11 May 2017
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 to that previously provided in the IMS on a
quarterly basis. This net asset value update is as at 31 March
2017.
1. Unaudited net asset value per share
The unaudited net asset value per share at 31 March 2017 was
506.1p. This represents an increase of 0.6% from the level at 31
December 2016. This is stated prior to the final dividend of 17.5p
per share payable on 18 May 2017.
2. Share price
The share price has increased by 12.7% from 306p to 345p in the
quarter to 31 March 2017. This compares to an increase in the FTSE
Small Cap Index of 5.4% over the same period. The discount to net
asset value at 31 March 2017 was 31.8%.
3. Balance Sheet
The unaudited balance sheet as at 31 March 2017 is noted
below:-
GBP'm
Investments:-
Dunedin managed 80.0
Third party managed 20.1
100.1
Cash and near cash (*1) 12.2
Other assets and liabilities (7.8)
------
Total net assets 104.5
======
Net asset value per share
(p) 506.1p
======
(*1) - stated before drawdown for FRA which will be up to
GBP7.3m and a final dividend of GBP3.6m
4. Net asset value movements
The portfolio of investments has been re-valued at 31 March
2017. The increase in net asset value in the quarter can be
attributed to:-
-- Within the Dunedin managed portfolio there were valuation
increases at Kee Safety (GBP0.9m), Alpha (GBP0.5m), Blackrock
(GBP0.4m) and Kingsbridge (GBP0.2m). Maintainable earnings at Kee
Safety continue to grow both organically and by acquisition. Each
of Blackrock, Alpha and Kingsbridge have benefited from an increase
in maintainable earnings.
-- These valuation increases have been offset by decreases in
valuation at CitySprint (GBP0.5m), Formaplex (GBP0.2m), and Premier
(GBP0.2m). CitySprint has been impacted by a softer market and
increased competition. Formaplex has been impacted by an increased
working capital requirement. Premier Hytemp continues to be
impacted by the lower oil price albeit that it is trading ahead of
budget.
5. New investment and realisations
New investments in the quarter totalled GBP8.0m. An investment
of up to GBP7.3m was made in Forensic Risk Alliance ("FRA"). FRA is
an international consultancy business that provides forensic
accounting data analytics and e-discovery to help businesses manage
risk in an increasingly regulated global environment.
A further GBP0.3m was drawn down by Innova/5 for a follow-on
investment in a current portfolio company.
Management fees accounted for GBP0.4m.
In February Steeper was realised generating proceeds of GBP8.9m
of which GBP6.7m is capital and GBP2.2m is income. The overall
return to Dunedin Enterprise was 1.9 times the original investment
of GBP5.6m. A further GBP0.8m was received from Innova/5 being the
final proceeds from the sale of WP. Overall this investment has
generated a return of 2.7 times original cost.
6. Cash and Commitments
The Company had cash and near cash balances of GBP12.2m at 31
March 2017. In addition the Company has a revolving credit facility
of GBP20m available until 31 May 2018.
As at 31 March 2017 the Company had outstanding capital
commitments to limited partnership funds of GBP36.6m. This is
stated before the drawdown for FRA and the final dividend both of
which will be made in May 2017. The cash balance following each of
these outflows will reduce to GBP1.3m with outstanding commitments
also being
reduced to GBP29.3m. Of this GBP29.3m it is forecast that approximately GBP13m will be drawn.
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. Dividend
A final dividend of 17.5p per share is payable to shareholders
on 18 May 2017.
8. Outlook
The Board remains committed to maximising shareholder value
through an orderly wind-down process. This could be achieved partly
by the judicious and timely sales of fund interests on the
secondary market or by continuing to hold these interests if this
is likely to provide a better return to shareholders. Despite the
ongoing political uncertainty the pricing for realisations of
quality businesses remains buoyant.
For further information on Dunedin Enterprise please go to
www.dunedinenterprise.com
This information is provided by RNS
The company news service from the London Stock Exchange
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