TIDMDNE
RNS Number : 8783Z
Dunedin Enterprise Inv Trust PLC
20 March 2017
20 March 2017
For release 20 March 2017
Dunedin Enterprise Investment Trust PLC ("the Company")
Year ended 31 December 2016
Dunedin Enterprise Investment Trust PLC, the private equity
investment trust, announces its results for the year ended 31
December 2016.
Financial Highlights:
-- Net asset value total return 2.7% in the year to 31 December 2016
-- Realisations of GBP31.7m in the year
-- New investment of GBP31.2m in the year
-- Exit of Steeper post year end
-- Interim dividend of 16p paid in May 2016
-- Final dividend of 17.5p per share proposed for the year ended 31 December 2016
Comparative Total Return Performance
FTSE
Small
Cap
(ex Inv
Year to 31 December Net Asset Share Cos)
2016 value(*1) price Index
--------------------- ----------- ------- ---------
One year 2.7% 0.0% 12.5%
Three years 2.1% -22.1% 23.7%
Five years 5.0% 16.4% 142.6%
Ten years 24.9% 0.3% 60.9%
(*1) - taken from 31 October for ten years
For further information please contact:
Graeme Murray Corinna Osborne / Emily Weston
Dunedin LLP Equity Dynamics
0131 225 6699 07825 326 440 / 07825326442
0131 718 2310 corinna@equitydynamics.co.uk
07813 138367 emily@equitydynamics.co.uk
Chairman's Statement
In the year to 31 December 2016 your Company's net asset value
per share decreased from 505.8p to 503.3p. After allowing for an
interim dividend of 16p paid in May 2016, the total return to
shareholders was 2.7% (in terms of net asset value).
On 2 February 2017 we announced the successful realisation of
Steeper, a leading supplier of prosthetic devices. The proceeds
received to date on this investment represent a return of 1.9 times
our original investment and an uplift of GBP5m on the valuation at
30 September 2016. The uplift on this transaction is reflected in
the net asset value at 31 December 2016. In view of the outstanding
undrawn commitments, the Board has decided to retain the majority
of the proceeds of this realisation. Further details of this
transaction appear below.
The share price at 17 March 2017 of 322p stood at a discount of
36% to the net asset value of 503.3p per share.
Wind-down
In May last year shareholders gave their approval for the
Company to be placed into wind-down. At that time the Board stated
that it had concluded that the best way to maximise value for
shareholders would be to implement a plan that allows the Company's
investments to be realised in an orderly manner over a period of
time and cash to be returned to shareholders progressively.
The majority of the Company's assets, or some 80%, are managed
by Dunedin LLP ("Dunedin"). These investments are by way of limited
partnership interests in Dunedin's funds, one of which is still
actively investing. Consequently, the Company is obliged, as are
other investors in those funds, to follow its commitment by funding
future capital calls made by that fund.
The other 20% of the Company's assets are invested in private
equity funds managed by external parties. The majority of these
comprise the holdings in Innova/5 and Realza, which invest in
Eastern Europe and Spain respectively.
One of the Board's main duties, on behalf of shareholders, is to
decide whether shareholders are likely to gain from an early
realisation of these fund interests by a sale on the secondary
market, together with any uncalled commitments to invest further.
This will, of course, depend on the prospects for the underlying
investments. Invariably the Board will have better visibility on
the investments in the Dunedin managed funds than in those managed
by external parties. The Board is keeping this position under
constant review, with the help of Dunedin.
One of the Board's other main responsibilities is to ensure that
the Company has adequate resources to honour its commitment to
these funds for further draw-downs to finance new investments. In
order to achieve this, the Board needs to retain enough capital
from realisations. A case in point is the recent successful
realisation of Steeper
Following approval by shareholders of the wind-down, the Manager
has reduced the ongoing costs of the Company where possible. These
cost savings will become apparent over time.
Due to the Company now being in wind-down the financial
statements for the year ending 31 December 2016 have not been
prepared on a going concern basis.
Portfolio
There were two new investments during the year. An investment of
GBP7.0m was made in Alpha Financial Markets which provides
specialist consultancy services to leading asset and wealth
managers and their third party administrators. An investment of
GBP4.2m was also made in Kingsbridge Risk Solutions. Kingsbridge is
the UK's leading provider of insurance services to contractors and
independent professionals. Follow-on investments were also made
into Premier Hytemp and EV.
The trading performance of the portfolio continues to be mixed
and in some cases disappointing. Unrealised value increases of
GBP18.7m were offset by value decreases of GBP17.3m. Valuation
uplifts were achieved by Blackrock, Kee Safety and U-POL. Each of
these businesses is trading well as a result of growth, achieved
both organically and by acquisition. There was also a valuation
uplift at Steeper as noted below. The two European funds, Realza
and Innova/5, each generated valuation uplifts as a result of the
performance of their underlying portfolios and beneficial exchange
rate movements.
The most significant valuation reductions in the year to 31
December 2016 were at Formaplex, EV, Hawksford, Pyroguard and Red.
Trading at Formaplex was impacted by the move to a new factory and
costs associated with developing new product lines. The low oil
price has continued to affect adversely trading at EV despite a
significant cost reduction programme undertaken by the company. An
aborted sale process at Hawksford affected the winning of new
business during the year. A new CEO has been appointed to re-focus
the business. Pyroguard suffered production problems at its French
factory which have now been resolved. Finally, the sales mix at Red
negatively impacted maintainable profits. The Manager is fully
involved with each of these portfolio companies, implementing
changes to their management and operating strategy in order to
return value to these investments.
Since the year end the Company achieved a significant
realisation with the sale of Steeper to Ottobock, a world-leading
manufacturer and supplier of prosthetic limbs. On completion
Dunedin Enterprise received proceeds totalling GBP8.9m of which
GBP6.7m is capital and GBP2.2m is income. This represents an uplift
of GBP5.0m from the previous valuation at 30 September 2016. The
overall return to Dunedin Enterprise at 2 February 2017 was 1.9
times the original investment of GBP5.6m. In addition, proceeds
amounting to 10% of the total, being GBP1.0m, have been deferred
for 18 months. Given the contingent nature of these deferred
proceeds, no value has been placed on them as at 31 December
2016.
Given the level of undrawn commitments still outstanding, the
Board is prudently not proposing to return any of the GBP6.7m
capital proceeds from the sale of Steeper to shareholders. However,
the Board's intention is that the GBP2.2m of the total proceeds
which are classified as income will be distributed to shareholders
by way of future dividends in due course.
In March 2017 the Company made an investment of GBP5.9m in
Forensic Risk Alliance through the Dunedin Buyout Fund III LP. FRA
is an international consultancy business that provides forensic
accounting, data analytics and e-discovery expertise to help
businesses manage risk in an increasingly regulated global
environment
Commitments & Liquidity
The Company had outstanding commitments to limited partnership
funds of GBP36.9m at 31 December 2016. This consisted of GBP33.5m
to Dunedin managed funds and GBP3.4m to the European funds.
However, assuming these funds are held to maturity, it is estimated
that approximately GBP20m of this total commitment will be drawn
over the remaining life of the funds.
The investment period of Dunedin Buyout Fund III which accounts
for GBP26.2m of the total Dunedin managed undrawn commitment,
closes in November 2017, although funds may be drawn down for new
investments after this date in circumstances where a proposed
investment is at an advanced stage at that date. Although the
investment periods of all other Dunedin managed funds have expired,
funds can still be drawn down for follow-on investments and
operating expenses of the fund.
Innova/5 accounts for GBP2.6m of the European funds' undrawn
commitments. Although the investment period of this fund closed in
December 2016, the manager was in an advanced stage on three
potential transactions at that time and it is anticipated that
there will be a drawdown to fund at least one of these investments
in early 2017. As Realza's investment period has expired it can
only draw down for follow-on investments and operating
expenses.
As at 31 December 2016 the Company held cash and near cash
balances of GBP2.6m (the majority of which is held in AAA rated
money market funds or by its wholly owned subsidiary, Dunedin Funds
of Funds LP). The Company has a revolving credit facility with
Lloyds of GBP20m which was undrawn at 31 December 2016 and is
available until 31 May 2018. The Board and the Manager remain
satisfied with the balance between cash resources and outstanding
commitments given the expected rate of new investment and potential
realisations of existing investments.
As explained above, the capital proceeds of GBP6.7m from the
sale of Steeper will be retained in the Company to fund the
expected drawdowns from the Dunedin managed and European funds,
thus minimising the use of the Company's revolving credit
facility.
Board Appointment
Following consultation with a number of the largest shareholders
in the Company, the Board is recommending the appointment of
Michael Meyer Jensen to the Board at the Annual General Meeting of
the Company on 11 May 2017. Michael is employed by Lind Invest as
an investment manager. Lind Invest is an independent Danish
investment group which currently holds an interest of 12.6% in the
Company. Michael has experience of investing in private equity
funds, including in listed private equity companies and the
secondary market. The Board believes that Michael's skills will be
of benefit to the Company during the wind-down process. Michael has
waived his right to be paid a director's fee.
Dividends
In the year to 31 December 2016 income received by the Company
was boosted by the partial sale of CitySprint and re-financings
undertaken at both Kee Safety and U-POL. In May 2016 an interim
dividend of 16p per share was paid to shareholders as a result of
the income received from CitySprint. It is now proposed to pay a
final dividend of 17.5p per share on 18 May 2017 to distribute the
remainder of the income received during the year.
The Board will propose a dividend in respect of the income
received from Steeper in due course.
B Share Scheme
Proposals for the adoption of a B Share Scheme will be posted to
shareholders with the Annual Report and will be available on the
Company's website. Shareholders will be asked to vote on these
proposals at a General Meeting which will follow immediately after
the Annual General Meeting.
After consulting with its advisers, the Board believes that this
Scheme offers a fair and efficient way of returning capital to
shareholders. While this route offers certain cost and other
advantages over a tender offer, the Board will keep under review
its relative advantages over time. Unlike a tender offer,
shareholders would not be given a choice as to whether or not to
participate in a return of capital.
Once in place, the Scheme can be used from time to time to
return capital to shareholders. While the Board believes that it is
prudent and cost-effective to put the Scheme in place as soon as
possible, shareholders should not conclude from this that returns
of capital are likely in the near term.
Shareholders will be advised when returns of capital take place.
Notwithstanding the introduction of the B Share Scheme,
shareholders should continue to expect a proportion of value to be
returned by way of dividends.
Outlook
The Board is committed to the aim of maximising shareholder
value through the orderly wind-down process. This could be
addressed partly by judicious and timely sales of its fund
interests on the secondary market or by continuing to hold these
interests if this is likely to provide better returns to
shareholders.
The Board and Manager have reviewed the potential impact of
Brexit on each investee Company. The portfolio has some degree of
protection arising from the international reach of many of the
investee companies. Despite the political uncertainty, economic
conditions have so far been relatively benign and pricing for
realisations of quality businesses remains buoyant.
Duncan Budge
Chairman
20 March 2017
Manager's Review
In the year to 31 December 2016 the net asset value per share
has decreased from 505.8p to 503.3p. After taking account of an
interim dividend for 2016 of 16p (paid in May 2016), the movement
in the year equates to a total return of 2.7%.
The Company's net asset value decreased from GBP104.4m to
GBP103.9m over the year. This movement is stated following a
dividend payment of 16p and amounting to GBP3.3m.
This movement in net assets can be explained as follows:
GBPm
----------------------------------------- ------
Net asset value at 1 January 2016 104.4
Unrealised value increases*(1) 18.7
Unrealised value decreases (17.3)
Realised loss over opening valuation*(2) (5.5)
Dividends paid to shareholders (3.3)
Net income and capital movements *(3) 6.9
----------------------------------------- ------
Net asset value at 31 December 2016 103.9
----------------------------------------- ------
*(1) - excludes GBP4.4m of income received from Kee Safety and
U-POL in the year that was transferred to the Income Account.
*(2) - includes drawdowns totalling GBP2.1m made during the year
by Dunedin managed funds for management fees and operating
expenses. Excludes GBP3.3m of income received from the partial
realisation of CitySprint that was transferred to the Income
Account.
*(3) - the GBP4.4m and GBP3.3m noted above are included in Net
income.
Portfolio Composition
The investment portfolio can be analysed as shown in the table
below.
Valuation Valuation
at Unrealised at
1 January Additions Disposals Realised Movement 31 December
2016 in year in year movement*(2) *(1) 2016
GBP'm GBP'm GBP'm GBP'm GBP'm GBP'm
---------------- ---------- --------- --------- ------------- ---------- ------------
Dunedin managed 93.0 22.4 (25.0) (5.5) (3.4) 81.5
Third party
managed 16.4 2.8 (1.7) - 4.8 22.3
AAA rated money
market funds - 6.0 (5.0) - - 1.0
---------------- ---------- --------- --------- ------------- ---------- ------------
109.4 31.2 (31.7) (5.5) 1.4 104.8
---------------- ---------- --------- --------- ------------- ---------- ------------
New Investment Activity
In February 2016 an investment of GBP7.0m was made in Alpha
Financial Markets ("Alpha"). Alpha is a global market leader in
providing specialist consultancy services to blue chip asset and
wealth managers and their third party administrators. Alpha has
over 200 consultants deployed across six major financial centres
working on behalf of more than 130 top asset and wealth management
clients. Alpha currently advises three quarters of the top 50
global asset managers.
In May 2016 an investment of GBP4.2m was made in Kingsbridge
Risk Solutions ("Kingsbridge"). Kingsbridge is one of the UK's
market leading providers of insurance services to contractors,
freelancers and independent professionals. Kingsbridge covers the
broadest range of industry sectors in its market, including
aerospace, banking and finance, rail, automotive, nuclear, oil and
gas and information technology.
An investment of GBP7.3m was made in CitySprint Newco as
discussed below. There were also follow-on investments of GBP0.3m
in Premier and GBP0.3m in EV.
During the year Innova/5 invested a total of GBP3.2m. In
February 2016 GBP1.6m was invested in Trimo a leading Central and
Eastern European provider of high quality building products. In
addition, GBP0.8m was invested in PeP a leading Polish payment
services provider and GBP0.4m in Netsprint an internet advertising
business. A further GBP0.2m was drawn for a follow-on investment in
Bakalland, a manufacturer of grocery products, and GBP0.2m was
drawn for operating expenses of the fund.
Following the year end in March 2017, the Company made an
investment of GBP5.9m through the Dunedin Buyout Fund III in
Forensic Risk Alliance ("FRA"). FRA is an international consultancy
business that provides forensic accounting, data analytics and
e-discovery expertise to help businesses manage risk in an
increasingly regulated global environment. FRA works on some of the
largest and most complex regulatory investigations globally. Its
clients are typically blue-chip multi-national corporates seeking
advice to help navigate regulatory scrutiny, effect compliant cross
border data transfer and manage risk.
Realisations
In February 2016 the investment in CitySprint was partially
realised in a sale to LDC. On completion Dunedin Enterprise
received proceeds totalling GBP26.1m of which GBP22.8m was capital
and GBP3.3m was loan interest. A total of GBP7.3m has been rolled
into a CitySprint Newco alongside LDC, resulting in net cash
proceeds received of GBP18.8m by Dunedin Enterprise. Dunedin
Enterprise retains a 5% interest in the Newco. The overall return
to Dunedin Enterprise was 2.8 times the original investment of
GBP9.8m over five years.
During the year there were also redemptions of loan stock at Kee
Safety (GBP1.1m), Blackrock (GBP0.7m) and RED (GBP0.3m).
One of the two European funds, Innova/5, realised GBP3.8m during
the year. In December Innova/5's investment in Wirtualna Polska,
the internet portal business, was realised. Proceeds were received
in two tranches, the first in December of GBP1.5m with the balance
of GBP0.7m in January 2017. The investment generated a return of
2.7 times the original cost.
A further GBP0.9m was generated from the sale of Provus, the
Romanian credit card processing and financial services company,
generating a multiple of 2.2 times original cost. Marmite, the
manufacturer of sanitary ware was also realised, generating
proceeds of GBP0.7m and a multiple of 1.6 times original cost.
There was also a return of GBP0.7m of an unused capital call.
Following the year end in February 2017 the investment in
Steeper was realised. Steeper is a leading supplier of
rehabilitation services including prosthetic, orthotic and
electronic assistive devices and services. Total proceeds from the
investment on completion amounted to GBP8.9m, consisting of capital
of GBP6.7m and income of GBP2.2m. This compares to a valuation of
GBP3.9m at 30 September 2016, an uplift of GBP5.0m on exit.
Cash and commitments
As at 31 December 2016 the Company had cash and near cash
balances of GBP2.6m all of which is denominated in Sterling. The
Company has a revolving credit facility with Lloyds Bank of GBP20m
which is available until 31 May 2018.
At 31 December 2016 the Company had undrawn commitments
totalling GBP36.9m. These undrawn commitments are split between
Dunedin managed funds of GBP33.5m and a further EUR4.0m (GBP3.4m)
of undrawn commitments to the two remaining European funds. It is
expected that approximately GBP20m of the total outstanding
commitments will ultimately be drawn over the remaining life of the
funds.
Unrealised valuation uplifts
In the year to 31 December 2016 there were valuation uplifts
generated from the following investments: Blackrock (GBP4.9m), Kee
Safety (GBP3.3m), Innova (GBP2.8m), Realza (GBP2.0m) and U-POL
(GBP1.3m).
Blackrock provides Independent Expert Witnesses to dispute and
litigation resolution in the growing global construction market.
Large global construction projects are often written under English
contract law with disputes resolved through the English courts.
Blackrock is appointed by the Court to provide expert testimony on
the quantum of cost involved in construction disputes. The company
has grown strongly during the year with maintainable earnings
increasing by 63%. An increasing demand for the company's services
has enabled it to benefit from a higher level of utilisation for
its consultants and for the company to increase its number of fee
earning consultants. The EBITDA multiple applied in the valuation
of Blackrock has increased from 7.5x to 8.0x, reflecting the
increasing scale of the business.
Kee Safety provides collective fall protection systems and
solutions. The company services a growing worldwide market which is
being driven by more rigorous enforcement and awareness of health
and safety regulations. The maintainable earnings of Kee Safety
increased by 28% during the year. This growth has been driven both
organically and through acquisition. Since Dunedin's investment the
company has made eleven acquisitions around the world and continues
to assess a pipeline of further acquisitions. Kee Safety has also
benefitted from a weakening of Sterling as 70% of Kee Safety's
revenues are denominated in either US Dollars or Euros.
U-POL is a leading manufacturer of branded automotive
refinishing consumables (fillers, polishes and coatings). During
the year maintainable earnings at U-POL increased by 8%. A new
management team was introduced into the company during the year.
This team has driven a process of product rationalisation and
re-branding which is beginning to have a positive effect on trading
performance at the company. Following the improved trading
performance of the business and prospects for its future
performance, the EBITDA multiple applied in valuing the business
has increased from 7.5x to 8.3x.
The valuation of Steeper has increased by GBP5.0m during the
year. This reflects the realised proceeds which were received in
February 2017 as discussed above. In addition, proceeds amounting
to 10% of the total, being GBP1.0m, have been deferred for 18
months. Due to the contingent nature of these deferred proceeds no
value has been placed on them as at 31 December 2016.
During the year there has been an increase in the valuation of
the Innova/5 portfolio totalling GBP2.8m. The impact of foreign
currency movements accounts for GBP1.2m of the uplift. Excluding
the impact of currency movements the most significant valuation
movements in the Innova/5 portfolio were uplifts at Trimo
(GBP0.6m), Bakalland (GBP0.5m), and WP (GBP0.2m).
The valuation of the Realza portfolio increased by GBP2.0m
during the year. This valuation movement was primarily due to
foreign currency movements (GBP1.6m) with the balance being
attributable to portfolio valuation movements.
Unrealised valuation reductions
The most significant valuation reductions in the year to 31
December 2016 were at Formaplex (GBP4.4m), EV (GBP3.0m), Hawksford
(GBP2.7m), Pyroguard (GBP2.2m) and Red (GBP1.7m).
Formaplex designs and manufactures injection-moulded tooling,
composite tooling and lightweight components for the automotive
industry. During 2016 Formaplex opening a new 120,000 sq ft factory
to undertake its mould, assembly and paint operations. The
transition to this new facility caused disruption to trading at
Formaplex, as well as costs associated with the introduction of new
product lines and an unfavourable sales mix. This led to a
reduction in maintainable EBITDA of 45%. The EBITDA multiple
applied in valuing the business has also been reduced from 7.0x to
6.0x to reflect the company's trading performance. During 2016 a
new management team has been installed and there are positive signs
of a recovery in the business with the new factory fully
operational and a strong order book from high end car
manufacturers.
EV is a global leader in the provision of high performance,
ruggedised video cameras and engineers to analyse problems in oil
and gas wells. Trading at the business continues to be impacted by
the low price of oil. Several key initiatives are being undertaken
by the management to the company to stabilise the financial
position of the business. The company is also changing its business
model towards a higher proportion of contracted work compared to
one-off assignments.
The maintainable earnings at Hawksford, the leading independent
international provider of corporate private client and specialist
fund services, fell by 24% during the year. A significant factor in
this reduction was the disruption caused by an aborted sales
process during 2016. Uncertainty over the outcome of this process
impacted the pipeline of new business with intermediaries being
reluctant to introduce new clients to Hawksford. A new Chief
Executive Officer has been appointed alongside other management
changes in order to re-energise the business.
During 2016 Pyroguard, the UK's leading manufacturer of fire
resistant glass, suffered from production issues at its French
factory creating delays in the delivery of products to customers.
This led to maintainable profit reducing by 33% during the year.
Management changes have been made at the business during the year
and significant production improvements at the French factory have
followed these changes.
Red provides SAP software experts on both a contract and
permanent basis. The maintainable earnings of the business have
continued to be negatively impacted by an unfavourable product mix.
There has been a strong performance from the lower margin contract
side of the business during 2016 which has been offset by under
performance in the higher margin permanent side of the
business.
Valuations and Gearing
The average earnings multiple applied in the valuation of the
Dunedin managed portfolio was 8.6x EBITDA (2015: 8.4x), or 10.2x
EBITA (2015: 9.8x). These multiples continue to be applied to
maintainable profits.
Within the Dunedin managed portfolio, the weighted average
gearing of the companies was 3.3x EBITDA (2015: 2.3x) or 3.8x EBITA
(2015: 2.6x). A significant portion of this increase is due to the
re-gearing undertaken during the year at U-POL and Kee Safety.
Analysing the portfolio gearing in more detail, the percentage
of investment value represented by different gearing levels was as
follows:
Less than 1 x EBITDA 24%
Between 1 and 2 x EBITDA 7%
Between 2 and 3 x EBITDA 17%
More than 3 x EBITDA 52%
------------------------- ---
Of the total acquisition debt in the Dunedin managed portfolio
companies the scheduled repayments are spread as follows:
Less than one year 6%
Between one and two years 4%
Between two and three years 7%
More than three years 83%
---------------------------- ---
Fund Analysis
The chart below analyses the investment portfolio by investment
fund vehicle.
Direct 11%
Dunedin Buyout Fund
I 1%
Dunedin Buyout Fund
II 32%
Dunedin Buyout Fund
III 31%
Equity Harvest Fund 5%
Third Party managed 20%
Portfolio Analysis
Detailed below is an analysis of the investment portfolio by
geographic location as at 31 December 2016.
UK 80%
Rest of Europe 20%
Sector Analysis
The investment portfolio of the Company is broadly diversified.
At 31 December 2016 the largest sector exposure of 39% remains to
the diverse Support Services sector.
Automotive 4%
Construction and
building materials 6%
Consumer products
& services 3%
Financial services 18%
Healthcare 10%
Industrials 18%
Support services 39%
Technology 2%
Valuation Method
Cost 8%
Earnings - provision 8%
Earnings - uplift 64%
Assets basis 11%
Exit value 9%
Year of Investment
In the vintage year chart below, current value is allocated to
the year in which either Dunedin Enterprise or the third party
manager first invested in each portfolio company.
<1 year 14%
1-3 years 21%
3-5 years 17%
>5 years 48%
Dunedin LLP
20 March 2017
Ten Largest Investments
(both held directly and via Dunedin managed funds) by value at
31 December 2016
Approx. Percentage
percentage Cost Directors' of net
of
of equity investment valuation assets
Company name % GBP'000 GBP'000 %
-------------- ----------- ----------- ----------- -----------
Realza 8.9 9,020 11,834 11.4
Hawksford 17.8 5,637 10,305 9.9
Blackrock 7.0 4,215 10,007 9.6
Kee Safety 7.2 5,151 9,833 9.5
Weldex 15.1 9,505 9,611 9.3
Steeper 37.4 5,317 8,941 8.6
Innova/5 3.9 8,456 8,716 8.4
CitySprint 5.1 7,308 8,003 7.7
Alpha 11.5 8,066 7,123 6.9
Pyroguard 41.7 9,450 4,337 4.2
72,125 88,710 85.5
-------------- ----------- ----------- ----------- -----------
Income Statement
2016 2015
Re-stated Re-stated Re-stated
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Investment income 8,126 - 8,126 211 - 211
Gains/(losses) on investments - (4,115) (4,115) - 576 576
------------------------------ ------- ------- ------- --------- --------- ---------
Total income 8,126 (4,115) 4,011 211 576 787
Expenses
Investment management
fee (30) (91) (121) (32) (97) (129)
Other expenses (604) - (604) (588) - (588)
------------------------------ ------- ------- ------- --------- --------- ---------
Profit/(loss) before
finance costs and tax 7,492 (4,206) 3,286 (409) 479 70
Finance costs (127) (382) (509) (130) (388) (518)
------------------------------ ------- ------- ------- --------- --------- ---------
Profit/(loss) before
tax 7,365 (4,588) 2,777 (539) 91 (448)
Taxation (449) 449 - - - -
------------------------------ ------- ------- ------- --------- --------- ---------
Profit for the year 6,916 (4,139) 2,777 (539) 91 (448)
------------------------------ ------- ------- ------- --------- --------- ---------
Basic return per ordinary
share
(basic & diluted) 33.5p (20.0)p 13.5p (2.6)p 0.4p (2.2)p
The total column of this statement represents the Income
Statement of the Group, prepared in accordance with International
Financial Reporting Standards as adopted by the EU. The
supplementary revenue and capital columns are both prepared under
guidance published by the Association of Investment Companies. All
items in the above statement derive from continuing operations.
All income is attributable to the equity shareholders of Dunedin
Enterprise Investment Trust PLC.
Statement of Changes in Equity
for the year ended 31 December 2016
Year ended 31 December 2016
Capital Capital Capital Special Total
Share redemption Reserve reserve Distributable Revenue retained Total
capital reserve realised - Reserve account earnings equity
GBP'000 GBP'000 GBP'000 unrealised GBP'000 GBP'000 GBP'000 GBP'000
GBP'000
--------------- ---------- ----------- ---------- ------------ -------------- ---------- ---------- ----------
At 31 December
2015 5,161 2,765 38,492 5,271 47,600 5,138 96,501 104,427
Profit/(loss)
for
the year - - 10,712 (14,851) - 6,916 2,777 2,777
Dividends paid - - - - - (3,303) (3,303) (3,303)
--------------- ---------- ----------- ---------- ------------ -------------- ---------- ---------- ----------
At 31 December
2016 5,161 2,765 49,204 (9,580) 47,600 8,751 95,975 103,901
--------------- ---------- ----------- ---------- ------------ -------------- ---------- ---------- ----------
Year ended 31 December 2015 (re-stated)
Capital Capital Capital Special Total
Share redemption Reserve reserve Distributable Revenue retained Total
capital reserve realised - Reserve account earnings equity
GBP'000 GBP'000 GBP'000 unrealised GBP'000 GBP'000 GBP'000 GBP'000
GBP'000
--------------- ---------- ----------- ---------- ------------ -------------- ---------- ---------- ----------
At 31 December
2014 5,217 2,709 47,177 (2,805) 47,600 6,658 98,630 106,556
Profit/(loss)
for the
year - - (7,985) 8,076 - (539) (448) (448)
Purchase and
cancellation
of shares (56) 56 (700) - - - (700) (700)
Dividends paid - - - - - (981) (981) (981)
--------------- ---------- ----------- ---------- ------------ -------------- ---------- ---------- ----------
At 31 December
2015 5,161 2,765 38,492 5,271 47,600 5,138 96,501 104,427
--------------- ---------- ----------- ---------- ------------ -------------- ---------- ---------- ----------
Balance Sheet
As at 31 December 2016
Restated
31 December 31 December
2016 2015
GBP'000 GBP'000
-------------------------------- ------------ ------------
Non-current assets
Investments held at fair value 104,816 109,433
Current assets
Other receivables 105 167
Cash and cash equivalents 90 511
-------------------------------- ------------ ------------
195 678
Current liabilities
Other liabilities (1,110) (984)
Loan facility - (4,700)
Net assets 103,901 104,427
-------------------------------- ------------ ------------
Capital and reserves
Share capital 5,161 5,161
Capital redemption reserve 2,765 2,765
Capital reserve - realised 49,204 38,492
Capital reserve - unrealised (9,580) 5,271
Special distributable reserve 47,600 47,600
Revenue reserve 8,751 5,138
-------------------------------- ------------ ------------
Total equity 103,901 104,427
-------------------------------- ------------ ------------
Net asset value per ordinary
share (basic and diluted) 503.3p 505.8p
Cash Flow Statement
for the year ended 31 December 2016
Restated
31 December 31 December
2016 2015
GBP'000 GBP'000
---------------------------------------- ------------ ------------
Cash flows from operating activities
Profit / (loss)
Adjustments for: 2,777 (448)
Gains / (losses) on investments 4,115 (576)
Interest paid 509 518
Increase /decrease in debtors 62 100
Increase/ decrease in creditors 126 180
Net cash from operating activities 7,589 (226)
Cash flows from investing activities
Purchase of investments (22,392) (10,328)
Drawdown from subsidiary (2,777) (3,232)
Purchase of 'AAA' rated money
market funds (6,003) (6,707)
Sale of investments 25,165 1,798
Distribution from subsidiary 1,504 850
Sale of 'AAA' rated money market
funds 5,000 7,840
---------------------------------------- ------------ ------------
Net cash used in investing activities 497 (9,779)
Cash flows from financing activities
Purchase of ordinary shares - (700)
Dividends paid (3,303) (981)
Interest paid (509) (518)
Repayment of loan facility (4,700) -
Drawdown of loan facility - 4,700
---------------------------------------- ------------ ------------
(8,512) 2,501
---------------------------------------- ------------ ------------
Net (decrease) in cash and cash
equivalents (426) (7,504)
Cash and cash equivalents at
1 January 511 8,031
Effect of exchange rate fluctuations
on cash held 5 (16)
Cash and cash equivalents at
31 December 90 511
---------------------------------------- ------------ ------------
Statement of Directors' Responsibilities in respect of the
Annual Report and the Financial Statements
The Directors are responsible for preparing the Annual Report
and the Group and Parent Company financial statements in accordance
with applicable law and regulations.
Company law requires the Directors to prepare Group and Parent
Company financial statements for each financial year. Under that
law they have elected to prepare the financial statements in
accordance with IFRSs as adopted by the EU and applicable law.
Under company law the Directors must not approve the financial
statements unless they are satisfied that they give a true and fair
view of the state of affairs of the Company and of their profit or
loss for that period. In preparing these financial statements, the
Directors are required to:
select suitable accounting policies and then apply them
consistently;
make judgments and estimates that are reasonable and
prudent;
state whether they have been prepared in accordance with IFRSs
as adopted by the EU; and
prepare the financial statements on the going concern basis
unless it is inappropriate to presume
that the Company will continue in business. As explained in note
1 the directors do not believe that
it is appropriate to prepare these financial statements on a
going concern basis.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Parent
Company's transactions and disclose with reasonable accuracy at any
time the financial position of the Company and enable them to
ensure that its financial statements comply with the Companies Act
2006. They have general responsibility for taking such steps as are
reasonably open to them to safeguard the assets of the Company and
to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also
responsible for preparing a Strategic Report, Directors' Report,
Directors' Remuneration Report and Corporate Governance Statement
that complies with that law and those regulations.
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company's website. Legislation in the UK governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
Responsibility statement of the Directors in respect of the
annual financial report
We confirm that to the best of our knowledge:
the financial statements, prepared in accordance with the
applicable accounting standards, give a
true and fair view of the assets, liabilities, financial
position and profit or loss of the company taken
as a whole; and
the Strategic Report and Directors' Report includes a fair
review of the development and
performance of the business and the position of the issuer,
together with a description of the
principal risks and uncertainties that they face.
We consider the annual report and accounts taken as a whole, is
fair, balanced and understandable and provides the information
necessary for shareholders to assess the Company's position and
performance, business model an strategy.
Duncan Budge
Chairman
20 March 2017
Notes to the Accounts
1. Preliminary Results
The financial information contained in this report does not
constitute the Company's statutory accounts for the years ended 31
December 2016 or 2015. The financial information for 2015 is
derived from the statutory accounts for 2015 which have been
delivered to the Registrar of Companies. The auditor has reported
on those accounts. Their report was (i) unqualified, (ii) did not
include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under section 498(2) or (3) of
the Companies Act 2006. The audit of the statutory accounts for the
year ended 31 December 2016 is not yet complete. These accounts
will be finalised on the basis of the financial information
presented by the Directors in this preliminary announcement and
will be delivered to the Registrar of Companies following the
Company's annual general meeting.
2. Dividends
Year to Year to
31 31
December December
2016 2015
GBP'000 GBP'000
Dividends paid in the year 3,303 981
--------- ---------
A final dividend of 17.5p per share for the year ended 31
December 2016 will be paid on 18 May 2017 to shareholders on the
register at close of business on 28 April 2017. The ex-dividend
date is 27 April 2017.
3. Earnings per share
Year to Year to
31 December 31 December
2016 2015
Revenue return per ordinary
share (p) 33.5 (2.6)
Capital return per ordinary
share (p) (20.0) 0.4
Earnings per ordinary share
(p) 13.5 (2.2)
Weighted average number
of shares 20,644,062 20,750,515
The earnings per share figures are based on the weighted average
numbers of shares set out above. Earnings per share is based on the
revenue profit in the period as shown in the consolidated income
statement.
4. Contingent assets
At 31 December 2016, contingent assets not recognised in the
financial statements in respect of potential deferred proceeds from
the sale of portfolio companies amounted to GBP1.0m (2015: GBPnil).
The extent to which these amounts will become receivable in due
course is dependent on future events.
In addition, discussions are ongoing with HMRC regarding the
payment of interest on a compound basis relating to the reclaim of
VAT on management fees. The amount and timing of any recovery
remains uncertain and accordingly no amount has been provided for
in the financial statements.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UKOKRBNAOAAR
(END) Dow Jones Newswires
March 20, 2017 03:01 ET (07:01 GMT)
Dunedin Enterprise Inves... (LSE:DNE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Dunedin Enterprise Inves... (LSE:DNE)
Historical Stock Chart
From Apr 2023 to Apr 2024
