Hadrian's Wall Secured Invs.Ltd Portfolio Update (4132O)
October 02 2019 - 2:00AM
UK Regulatory
TIDMHWSL TIDMHWSC
RNS Number : 4132O
Hadrian's Wall Secured Invs.Ltd
02 October 2019
2 October 2019
Hadrian's Wall Secured Investments Limited
Portfolio Update
Further to the announcement made by Hadrian's Wall Secured
Investments Limited (the "Company") on 23 May 2019, the board of
the Company (the "Board") is providing this update with respect to
Biomass Premium Fuels Limited ("BPFL") and Biomass Optimum Fuels
Limited ("BOFL") which separately acquired the assets of Arensis
Energy Ltd, Entrade Energy Ltd and Arensis Energy One Ltd out of
administration on 21 December 2018. The Company financed these
acquisitions and provided additional capital for working capital
and capex.
BOFL has entered into a strategic partnership with the SDL Group
to operate the manufacturing facilities of BOFL. The agreement is
for an initial three years with prospective extensions. SDL was
founded in 2007 and is an established manufacturer and distributor
of biomass fuel products and related renewable energy services
across the UK. The agreement with BOFL increases SDL's UK
manufacturing capacity. The Company's investment in BOFL is
currently GBP6.6 million.
BPFL, in respect of which the Company's investment is GBP10.7
million, is now engaged in ongoing discussions and due diligence to
enter into a joint venture or partnership. These discussions have
not progressed at the pace previously anticipated, however,
discussions are continuing, and Hadrian's Wall Capital Limited, the
Company's investment adviser, (the "Investment Adviser") remains
optimistic that progress will continue to be made with a favourable
outcome in the near term.
The Board, on advice from the Investment Adviser, considers that
the successful completion of the agreement between BOFL and SDL
reduces the risk of material loss to the Company in respect of
BOFL. If comparable arrangements for BPFL are not completed in a
satisfactory manner, the outcome in relation to the Company's
investment in BPFL would be uncertain and the Company could be
exposed to the risk of a material loss.
The Investment Adviser remains of the view that individual case
loss reserves continue not to be required in respect of either of
these investments at this time. Nevertheless, the Company is
maintaining its general loss provisions in connection with BPFL at
GBP1.4 million, and BOFL at GBP1.8 million. The Investment Adviser
does not anticipate any impact on the Company's ability to continue
to meet the dividend target on the Ordinary Shares at this
time.
The Investment Adviser and Board continue to monitor the
situation and expect to provide periodic updates.
Contact Details
Hadrian's Wall Capital Limited (Investment Adviser)
Ron Miao / Mike Schozer
Telephone 020 3026 8620
Winterflood Investment Trusts (Corporate Broker)
Joe Winkley / Neil Morgan
Telephone 020 3100 0000
LEI: 213800ABN7VKMVNOLG14
Forward-looking statements
This press release may contain forward-looking statements with
respect to the Company's future financial performance and position.
Such statements are based on current expectations, estimates and
projections of the Company and information currently available to
the Company. The Company cautions readers that such statements
involve certain risks and uncertainties that are difficult to
predict and therefore it should be understood that many factors can
cause actual performance and position to differ materially from
these statements. The Company accepts no obligation to update the
statements contained in this press release, unless required by
law.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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