Dunedin Enterprise Inv Trust PLC 3rd Quarter Results (7690W)
November 17 2017 - 2:00AM
UK Regulatory
TIDMDNE
RNS Number : 7690W
Dunedin Enterprise Inv Trust PLC
17 November 2017
Dunedin Enterprise Investment Trust PLC (Company No SC52844)
Quarterly Update at 30 September 2017
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 Trust in a similar format to that
previously provided by the IMS on a quarterly basis.
1. Unaudited net asset value per share
The unaudited net asset value per share at 30 September 2017 was
569.6p, representing an increase of 10.6% from the level at 30 June
2017. Following the Return of Capital and the Dividend referred to
in paragraphs 5 and 6 below, the unaudited net asset value per
share of the Company will reduce to 456.1p.
2. Share price
The share price increased by 13% from 350.5p to 396p over the
quarter to 30 September 2017. This compares to an increase in the
FTSE Small Cap Index of 2.8% over the same period. The discount to
net asset value at 30 September 2017 was 30.5%. The share price at
16 November 2017 was 465p, representing a discount of 18.4% to the
net asset value at 30 September 2017.
3. Realisations
In August Blackrock PM was realised generating proceeds of
GBP12.8m, consisting of capital of GBP12.7m and income of GBP0.1m.
The original cost of the investment made in March 2015 was GBP4.9m
and, over the life of the investment, a total of GBP13.9m has been
received by Dunedin Enterprise representing a 2.8 times return and
an IRR of 60%.
Following the quarter end two further realisations were
achieved.
-- Alpha FMC successfully listed on the AIM market and our
entire investment was realised. Total proceeds from the listing
amounted to GBP16.7m (an uplift of GBP7.7m), consisting of capital
of GBP15.6m and income of GBP1.1m. The original cost of the
investment in February 2016 was GBP8.1m and, over its life, a total
of GBP16.7m has been received by Dunedin Enterprise, representing a
2.1 times return and an IRR of 55%.
-- Kee Safety was realised via a secondary buyout with proceeds
from the sale amounting to GBP15.8m (an uplift of GBP4.2m)
consisting of capital of GBP15.1m and income of GBP0.7m. The
original cost of the investment made in November 2013 was GBP6.3m
and, over its life, a total of GBP18.8m has been received by
Dunedin Enterprise, representing a 3.0 times return and an IRR of
35%.
4. Cash and Commitments
Dunedin Enterprise had cash and near cash balances of GBP16.4m
at 30 September 2017. Following the realisations of Alpha and Kee
Safety the cash balance held by the Company was GBP47.2m as at 16
November 2017. Additionally, Dunedin Enterprise has a revolving
credit facility of GBP20m available until 31 May 2018.
Dunedin Enterprise has outstanding capital commitments to
limited partnership funds of GBP43.5m following the recent
realisations from Dunedin Buyout Fund III LP. It is expected that
GBP27m of the total outstanding commitments will ultimately be
drawn over the remaining life of the funds.
5. Return of Capital
Following the portfolio realisations noted above the Board has
decided to return GBP20.6m to shareholders via an issue of B Shares
as set out in the Circular sent to shareholders on 3 April 2017 and
as approved by shareholders on 11 May 2017. B Shares of 50p each
will be paid up from capital and issued to all shareholders by way
of a bonus issue pro-rata to their holding of Ordinary Shares on
the basis of two B Shares for every one Ordinary Share held at the
record date of 6.00pm on 1 December 2017. The B Shares will be
issued on 4 December 2017 and immediately redeemed at 50p per B
Share. The proceeds from the redemption of the B Shares, which is
equivalent to GBP1 per ordinary share, will be sent to shareholders
on 15 December 2017, either through CREST to uncertificated
shareholders or via cheque to certificated shareholders. The
capital being returned represents 17.6% of the Company's net asset
value at 30 September 2017.
A copy of the Circular sent to Shareholders is available on the
Company's website (www.dunedinenterprise.com). Also available on
the website is a Guide to the B Share Scheme which includes an
illustration for the computation of the chargeable gain on the B
Shares for tax purposes.
6. Dividend
An interim dividend of 13.5p per share is payable to
shareholders on 15 December 2017 with an ex-dividend date of 30
November 2017 and a record date of 1 December 2017. This represents
the majority of the income received by the Company to date.
7. Net asset value movements
The portfolio of investments has been re-valued at 30 September
2017 to reflect the recent realisations. The increase in net asset
value in the quarter can be attributed to:-
-- Within the Dunedin managed portfolio there were valuation
increases at Alpha (GBP7.7m), Kee Safety (GBP4.2m), Pyroguard
(GBP1.6m) and FRA (GBP1.3m). The valuations of both Alpha and Kee
Safety reflect the realised proceeds received following the quarter
end. Each of Pyroguard and FRA have benefited from an increase in
maintainable earnings.
-- These valuation increases have been offset by a carried
interest provision of GBP3.3m being established in relation to
Dunedin Buyout Fund III LP ("DBFIII"). DBFIII has a performance
hurdle of 8% which has been achieved following the valuation
uplifts achieved on the realisations of Blackrock PM, Alpha FMC and
Kee Safety.
8. Balance Sheet
The unaudited balance sheet as at 30 September 2017 is noted
below: -
GBP'm
Investments:-
Dunedin managed (*1) 83.5
Third party managed 18.1
101.6
Cash and near cash (*1) 16.4
Other assets and liabilities (0.4)
------
Total net assets 117.6
======
Net asset value per share
(p) 569.6p
======
(*) (1) - the cash balance held by the Company at 16 November
2017 was GBP47.2m following the realisations noted above.
Conversely, the value of Dunedin managed funds has reduced to
GBP50.9m.
9. Outlook
The Board remains committed to the aim of maximising shareholder
value through the orderly wind-down process. In addition to the
Manager realising individual assets within the Dunedin managed
funds, the Board will also consider the timely and judicious sale
of the Company's fund interests. This will be achieved either by a
sale 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
END
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