TIDMSPPC
For Immediate Release
13 July 2011
Preliminary Results for the Year Ended 31 March 2011
St Peter Port Capital Limited (the "Company" or "St Peter Port"), the AIM listed
investment company whose aim is to generate value by investing predominantly in
growth companies shortly before an initial public offering ("IPO") or other exit
event, announces its preliminary results for the year ended 31 March 2011.
Highlights
* profit of GBP15.1m, earnings per share 21.0p (2010 : loss of GBP5.9m, loss per
share 8.1p)
* realised GBP30.3m since 1 April 2010 to 8 July 2011 in cash from investee
companies; realised GBP53.0m since inception, generating a gain on investment
of 107 per cent
* NAV of 120.8p per share at year end, up 23.6 per cent for the financial
year
* GBP3.9m invested during the year in five companies, four new to the portfolio.
Post year end, GBP3.8m invested in three companies, two new and one follow-
on
* currently holding stakes in 45 investee companies
* cash balance of GBP17.9m as at 8 July 2011 (compared to GBP6.5m on 21 July
2010)
* proposed inaugural dividend of 3p per share, plus 2p per share special
dividend
Bob Morton, Chairman of St Peter Port, said:
"A number of our pre-IPO investments are coming to market or expect to come to
market over the coming months. These developments offer the potential for
further significant realisations, generally at a significant premium to our
current carrying cost."
Tim Childs, Investment Advisor to the Board of St Peter Port Investment
Management Limited, said:
"The reduced competition in pre-IPO financing has enabled us to strike some
exceptional deals, exploiting the large arbitrage gap between pre-IPO and public
companies. We are now focused on seeking to harvest the results of our
investments as companies in the portfolio reach liquidity events. In addition,
we are reinvesting the cash we have realised over recent months where we
continue to see compelling near-term return opportunities which should generate
significant value for shareholders."
For further information:
St Peter Port Capital Limited
Peter Griffin - 01481 751000
St Peter Port Investment Management Limited
Tim Childs - 020 20 7240 3765 / Graham Shore - 020 7408 4090
Buchanan Communications
Jeremy Garcia / Helen Chan - 020 7466 5000
Deloitte LLP- Nominated Adviser
Jonathan Hinton / James Lewis - 020 7936 3000
Shore Capital Stockbrokers Limited - Broker
Dru Danford - 020 7408 4090
Notes for Editors
St Peter Port Capital Limited floated on AIM in April 2007, raising GBP75m in new
equity. The Company is a Guernsey registered closed-ended investment company.
The Company's objective is to achieve returns from the uplift on or shortly
after IPO, but the exit from the investment could also be a trade sale. The
universe for investment is principally companies across a broad range of sectors
and geography expecting to conduct an IPO or achieve a trade sale or other
liquidity event in the months after the Company's investment. However, in
current conditions, it may also include companies which are already public whose
value is not properly recognised by stock markets. The focus has been on
companies targeting UK, US and Commonwealth stock markets although pre-IPO
companies looking to float on other exchanges are also considered. The
Company's investment manager ("the Investment Manager") is St Peter Port
Investment Management Limited, a joint venture between Broughton Investments
Group Limited ("Broughton"), a company in which Tim Childs is interested, and
Shore Capital Limited ("Shore Capital"), the absolute return fund management
specialist which currently manages approximately GBP1.3 billion.
Chairman's Statement
Introduction
I am pleased to report upon the year ended 31 March 2011, a successful year for
the Company in terms of growth in NAV and in realisations.
Market Conditions and Investment Approach
When we last reported in December, I noted that the investment climate had
become more favourable for the resources sector in particular (although not for
other sectors) and commodity prices were stronger. Oil, coal, industrial metals
such as iron, copper and nickel and soft commodities were firm, whilst gold
remained near its high. Current conditions are discussed below.
During the year, the focus of the Company moved further towards realisations
from the existing portfolio and the Company also made a number of new
investments in companies with good prospects for early liquidity events. Since
the period end, the Company has continued this investment approach.
Investments and Realisations during the Year
The Company invested GBP7.0 million in five companies during the financial year,
all in the second half. One of these investments was a follow-on and the other
four were in new companies. Subsequent to the year end, we made one follow-on
investment and two new investments, in total GBP3.8 million. In each case we
judged that there was a credible expectation of a liquidity event in any form
within a relatively short period, such as a trade sale or repayment of a loan.
Since launch, the Company has realised some GBP53.0 million through disposals,
generating a gain on investment of 107 per cent. The rate of realisations
improved considerably during the year, reflecting the better capital market for
the types of resource companies we mainly hold. Eight of our investee companies
became public in 2010/11, some through IPOs and some through reverse takeovers.
During the year, the Company realised or partly realised pre-IPO investments,
generating some GBP18.0 million in cash, a gain on these investments of 221 per
cent. In the period from the year end to date the Company has realised or
partly realised pre-IPO investments, generating a further GBP12.3 million in cash,
a gain on investment of 274 per cent.
Financial Results
The Statement of Comprehensive Income for the year shows a profit of GBP15.1
million (2010: loss of GBP5.9 million), generating earnings per share of 21.0
pence (2010: a loss per share of 8.1 pence). This profit arose partly from
realised gains, particularly on the sale of shares in HRT, and also from
revaluations of holdings. In the case of the revaluations, these primarily
reflect external rounds at higher prices together with the prospect of liquidity
events in the near term. Some of the significant revaluations of holdings are
discussed in the Investment Manager's report.
Balance Sheet
Net assets at the year end were GBP85.0 million (2010: GBP71.1 million), giving a
net asset value of 120.8 pence per share (2010: 97.75 pence per share), a gain
of 23.6 per cent for the year. Net asset value per share ("NAV") increased by
30.0 per cent in the second half.
From the year end until 30 June 2011, the NAV has declined by about 3.3 per
cent, largely as a result of falls in the value of our quoted holdings.
At the year end the Company held GBP73.1 million in investments in companies,
being equity investments and loan instruments (2010: GBP63.3 million), with
financial liabilities of GBP3.2 million (2010: nil). The remaining balance sheet
was predominantly in cash, GBP12.6 million (2010: GBP8 million). At 8 July 2010,
the Company held cash of approximately GBP17.9 million, the increase in cash
reflecting realisations since the year end and the further investments discussed
above.
Share Buybacks
On 26 October 2010 the Company bought in 2,400,000 of its shares at 50 pence per
share, a large discount to the then prevailing NAV per share. These shares were
cancelled on 14 June 2011.
Dividends
The portfolio has matured considerably and the prospects for regular
realisations are accordingly better. The board therefore proposes an inaugural
dividend of 3 pence per share for the year, and will seek to maintain or improve
this level of payout in future provided that the situation of the Company
permits. It also proposes to pay an additional special dividend of 2 pence per
share to reflect the profitability of the financial year, to be paid at the same
time.
The dividend will be paid on 24 August 2011 to shareholders on the register as
at 29 July 2011.
Outlook
St Peter Port has realised significant cash in recent months and we are
continuing to reinvest that money where we believe that we can obtain strong
returns and exits within a short period. The arbitrage gap between the prices
of resource-related companies when private and publicly traded is at an
unusually attractive level at present, reflecting the reduced competition in our
space and better public company valuations. This is notwithstanding the more
negative sentiment for resource stocks which arose in the last quarter, which
has fed into the pricing of pre-IPO deals.
Despite current stock market conditions for commodity-related stocks, a number
of our pre-IPO investments are coming to market or expect to come to market over
the coming months. These developments offer the potential for further
significant realisations, generally at a significant premium to our current
carrying cost. We hope to be able to report further progress in realisations
when we next issue results. Whilst the climate for crystallising value is
currently less favourable than it was, the portfolio of high risk/high reward
companies includes many prospects for strong returns on our original investment.
Bob Morton
Chairman
Investment Manager's Report
Our portfolio remains weighted to three sectors. These are oil and gas
(including enhanced recovery techniques); minerals including copper, gold,
nickel, uranium, rarer elements and coal; and environmentally friendly
technologies including cleaner/more efficient ways of burning conventional
fuels, second generation bio fuels and hydrogen technologies. However, we have
also made investments in the largest and highly dynamic farmland owner in
Uruguay, in timber in Mozambique and in a US food company.
Most of the portfolio companies have their main activity outside of the UK and a
significant proportion are sourced from brokers whose main business is outside
the UK. Some have now listed in Canada or Australia and some have plans to list
in Hong Kong or Brazil, possibly together with a listing on another market.
Others are now more likely to seek acquisition by a larger company rather than
an IPO. Of the total portfolio, GBP20.0 million was listed as at 31 March 2011,
representing 27.4 per cent of the invested portfolio at that date. This
percentage has since reduced following the subsequent sale of listed assets.
The table below shows the breakdown of the investments by sector as at 31 March
2011:
Investments by Sector as at 31 March 2011
Sector Number Cost GBPm Value GBPm Percentage (of value)
Oil and Gas 13 24.8 26.9 38%
Mining 17 24.1 30.7 42%
Technology 2 3 3.8 5%
Renewable Energy 5 4.9 2.3 3%
Other 7 9.5 9.4 12%
Total 44 66.3 73.1 100%
Investments During The Year
During the 2011 financial year we made five "pre-IPO" investments, one of which
was a follow-on, and invested GBP7.0 million. The follow-on investment was in
East African Timber. We had previously invested GBP250,000 in this company with
the right to invest a further GBP500,000 on the same terms. We have exercised
this right early in recognition of which we have been granted additional
warrants. The company is developing plantations of fast growing timber in the
most favoured part of Mozambique and has also acquired existing mature
plantations.
The four new investments were:
* Mongolia Minerals Corporation, a Canadian company whose board includes a
leading exploration entrepreneur, executives from a major Canadian coal
producer and a well-connected Mongolian partner. The company has licences
with a proven resource of 512 million tonnes of high quality coal and the
funds being raised will partly be used to expand the license area. It
expects to sell the coal in China. We have invested CDN$1 million as part
of a CDN$25 million equity round
* Astrakhan Oil Company, in which we invested US$2.5 million. The company has
oil and gas licences in two fields in the Volga Delta/ Caspian region.
* Iona Energy in which we invested CDN$2 million. The company has acquired
blocks in known North Sea oil and gas territories, where it plans to develop
wells.
* Seven Energy, in which we invested US$5 million. It is focused on
developing known gas fields in Nigeria to supply the power and heavy
industrial market in Nigeria. Seven Energy has many well-known and large
investors and expects to be a mid-cap company when it lists in London.
We made three investments since the year end. One was a follow on investment of
a further CDN$2 million in Mongolia Minerals. The other two were new
investments:
* US$2 million in a Brazilian iron ore development. The Brazilian development
is an iron ore resource in the Minas Gerais province of Brazil and in due
course our investment will be in Manabi Holding SA, a Brazilian company.
Our investment was part of a $550 million round to secure the asset and
fund further development.
* Most recently, Global Atomic Fuels Corporation ("Global Atomic"), in which
we invested CDN$2 million. Global Atomic is a uranium exploration and
development company. It has exploration rights in Niger and has discovered
an unusually high-grade of uranium mineralisation on the surface of its
licensed area. Our investment was part of a round of CDN$25.5 million
raised to develop the asset.
It total, we have invested GBP3.8 million since the year end.
Realisations and listings
Over the last year eight of the companies in our portfolio have gone public.
Most achieved successful IPO's or reverse takeovers raising significant new
money and generating a significant uplift in value for us. In several cases a
liquid after-market has since developed, enabling us to make disposals of all or
part of our shareholding.
The largest realisation to date was of HRT Participacoes em Petroleo SA ("HRT"),
a Brazilian oil and gas exploration company in which we invested US$5 million.
HRT raised approximately US$1.5 billion in an IPO in Brazil on 25 October 2010
and has since seen its shares trade well. Following the IPO, we sold virtually
our entire holding of shares in HRT, generating a large gain. This disposal
generated GBP14.46 million in proceeds in the financial year, before withholding
tax of GBP3.4 million.
The Company also held warrants over shares in HRT, exercisable at a cost of
approximately US$4 million. We exercised these warrants in March 2011 and
subsequently sold the resulting holding in April 2011. The proceeds of the sale
of the warrants generated a further net proceeds of GBP11.87 million after taking
account of the exercise and other related costs. The overall gain from the
original investment of US$5 million in HRT was GBP20.7 million and the multiple of
net proceeds to original investment is 7.5x.
We also achieved a number of other significant realisations. Creso Exploration
Inc ("Creso") became public by reversing into a public company in June 2010 and
subsequently raised new equity in placings. We realised sufficient shares in
Creso to have recovered the cost of our initial investment and continue to hold
a substantial shareholding and warrants over shares in the company
We also sold all our shares in Midas Capital (which is now called MAM Funds) and
a large part of our holding in Tuscany International Drilling ("Tuscany").
Tuscany went public in Canada in 2010 through a reverse takeover, but initially
liquidity was poor. Following a re-rating of the shares, we were able to
realise for a gain on investment of 32 per cent.
Other portfolio companies to go public during the year were HaloSource, Ilika
Technologies, Royal Coal, Royal Nickel and Southern Andes Energy (a distribution
in specie from Homeland Uranium).
Investments - Detail
The following is a list of the Company's current Investments
Company Investment Business
(initial terms)
African Timber and Farming GBP250,000 for ordinary A Mozambique-based timber
shares. Further company.
GBP500,000 for ordinary
shares
AmLib US$2m subscription for A Jersey based company
ordinary shares established in May 2000
to explore for gold,
diamonds and other
natural resources in
Liberia. AmLib holds one
mineral development
agreement and seven
exploration licenses
covering a total surface
area of 3,400km ².
Astrakhan Oil US$2.5m for ordinary An oil development
shares company with licence
interests in the Volga
Basin / Caspian Sea,
Russia.
Bio-thermal Technologies Acquired in exchange for A New Zealand-based
(formerly Waipuna) another investment company which has
developed a non-pesticide
weed controller,
certified for use in
organic agriculture.
Brazil Potash US$2.5m in ordinary It has licences covering
shares 22.5m hectares in the
Amazon potash basin to
develop potash mines.
Buried Hill US$850,000 subscription An international oil and
for and US$2.7m gas exploration company
acquisition of ordinary focused on Caspian Sea
shares and West Africa which is
in advanced discussions
to conclude a farm-in
agreement with an oil
major to develop the
Caspian assets.
Celadon Mining Ltd GBP3.7m subscription in Chinese Government backed
two tranches company which has
acquired major coking
coal mines in NE China.
Creso Exploration Cdn$2.2m subscription A gold and base metals
for common stock. exploration company with
Further Cdn$700,000 prospects in Canada,
subscription for common Mexico and Guatemala.
stock and warrants Creso is now listed on
the TSX.
Dominion Minerals US$1.5m subscription for A US-based copper and
common shares and gold exploration and
warrants. Further US$2m development company
in a secured bond focused on its Cerro
Chorcha Copper Project in
Panama and its gold and
copper/gold ventures in
China. We have exercised
our charge over the
asset.
Eden Energy US$4.56m subscription An Australian diversified
for ordinary shares clean energy company with
interests in hydrogen
production, storage and
transport fuel systems,
together with coal-bed
methane licences in South
Wales. Eden is listed in
Australia.
Enhanced Oil Cdn$4m subscription and A Houston-based enhanced
further subscription of oil recovery resources
Cdn$1.6m for common company which controls
stock and warrants the largest undeveloped
natural helium/CO2
resource in North
America. Enhanced Oil
has acquired depleted
oilfields where
significant enhanced oil
recovery resources remain
and where CO2 flooding is
effective.
Global Atomic Cdn$2m for ordinary A Canadian company with
shares exploration interests in
Niger, which has
discovered a high-grade
uranium deposit.
Gourmet Express US$3m subscription for A leading consumer
ordinary shares. Further products company
loan with warrants of specialising in the
US$600,000 production, distribution
and marketing of a wide
variety of frozen food
products, in particular
the frozen skillet meal
category. The loan has
recently been converted
into shares.
HaloSource Acquired in exchange for US-based company with a
another investment leading technology for
purification of water at
point of use. The
company went public on
AIM in October 2010.
Homeland Uranium Cdn$2.2m subscription Exploration company with
for common stock and uranium and vanadium
warrants exploration in the USA,
Africa and Peru The main
emphasis has been on
exploration for uranium
in Niger.
Ilika GBP2.5m subscription for A company spun out of the
ordinary shares University of Southampton
which specialises in the
development and
application of high
throughput, combinatorial
R&D techniques for the
discovery of new
materials. Ilika was
admitted to AIM in May
2010 and our holding
increased by a ratchet.
International Goldfields GBP1m subscription for IGS is an Australian
("IGS") (formerly Latin ordinary shares in Latin quoted company which
Gold) Gold. Our interest was controls gold exploration
acquired by IGS for cash assets in Australia. It
and shares purchased Latin Gold (our
original investment) and
thereby acquired mineral
rights in Brazil to a
previously mined area
where low-tech artisanal
miners have produced an
estimated 4.5m oz from
soils over the last 11
years.
Iona Energy Cdn$2m for ordinary A now publicly traded
shares (TSX) Canadian company
with development
interests in the North
Sea.
iQur GBP0.5m subscription for A medical research
ordinary shares company that is
developing a novel
vaccine platform,
initially focusing on the
Hepatitis virus.
Jordan Energy US$1.05m subscription A company with rights to
for ordinary shares extract large shale oil
deposits in Jordan.
Manabi Minerals US$2m for ordinary A Brazilian iron ore
shares in an SPV which development company with
will be swapped in due a resource of 3.5bn
course tonnes of high-grade iron
ore in the Minas Gerais
province of Brazil.
Mediatainment (formerly US$2m subscription for A US developer of Google
STV) common shares Android tablets and 3D
electronic entertainment
solutions.
MinCore Cdn$2.025m subscription Has large base metal
for ordinary shares deposits in Mexico - both
copper and molybdenum.
Mongolian Minerals Cdn$1m and a further A Canadian exploration
Cdn$2m for commission and development company
shares focused exclusively on
Mongolia. The company is
currently developing a
high-quality thermal coal
asset called Khotgor, in
the north western portion
of the country. Current
resources at Khotgor are
512 million tonnes.
Nusantara Energy GBP2.25m subscription for Nusantara is developing a
shares and warrants large deposit (at least
490 million tonnes) of
thermal coal in Sumatra,
Indonesia and seeking to
acquire further coal
interests in Sumatra.
Following an extensive
drilling programme,
Nusantara has confirmed
that the resource is good
quality thermal coal in
thick seams very close to
the surface. This
deposit is ideally
located to supply the
market for coal-fired
power generation in South
East Asia, where demand
is strong. It is
currently exploring a
trade sale.
Petro Kamchatka Resources US$2m and further A Canadian based oil and
(formerly CEP Resources) US$1.875m subscription gas exploration company
of equity after the which owns interests of
year-end two exploration licences
in Eastern Russia. It is
publicly traded in
Canada.
Providence Resources EUR3.2m subscription for An Irish oil and gas
convertible loan notes. company with substantial
Further GBP1m in ordinary offshore exploration
shares interests in Ireland,
further offshore
interests in Nigeria and
(largely producing)
onshore and offshore
assets in the UK and USA.
Listed on AIM; the
convertibles are
currently listed in the
Cayman Islands.
Puma Hotels plc GBP1.95m subscription for Puma Hotels holds a
convertible preference portfolio of 20 leading
shares British conference and
leisure hotel let on long
inflation-indexed leases
to a blue chip tenant,
Barceló Hotels.
Quetzal Cdn$2.1m subscription A Canadian company with
for common shares and interests in petroleum
warrants producing assets in
Guatemala. It is listed
on the TSX.
RAM Resources US$2m subscription for A Jersey-based mineral
(being re-named First Iron) ordinary shares Further and asset development
US$1m loan stock company which controls a
100 per cent owned iron
ore mining property in
the Kurgan region of
Russia.
Red Flat Nickel US$4.2 million The company controls two
investment in loan notes nickel laterite deposits
in a complex deal in Oregon. The St Peter
Port loan has partly
funded some exploration
of deposits on the two
fully owned tenements.
Following the loan
reaching its term, St
Peter Port has acquired a
majority equity interest
as well as improving the
security of the loan.
Royal Coal US$1m subscription for An American coal
ordinary shares producing company
approaching profitable
production. This company
subsequently went public
through a reverse
takeover.
Royal Nickel Cdn$4m subscription for A Canadian nickel
ordinary shares developer with a world-
class nickel deposit in
northern Quebec. The
company floated on the
TSX in Canada in December
2010.
Seven Energy US$5m subscription for A Nigerian company with
ordinary shares major gas interests
planning to serve the
local heavy industry and
utility market.
Southern Andes Energy Distribution in specie Explorer and developer of
from Homeland Uranium uranium projects in Peru.
It also has silver/lead
- zinc projects in Peru.
The company listed on the
TSX in December 2010.
Specialist Energy Group GBP500,000 subscription Specialist Energy Group
(Formerly Nviro) for ordinary shares reversed into Nviro, an
AIM listed clean tech
company. SEG specialises
in engineering,
particularly boiler
pumps, for the power
sector.
TMO Renewables GBP2.5m subscription for A world leader in novel
ordinary shares ethanol fermentation
technology which produces
bio-ethanol from low-
grade sugar by means of a
new fermentation
technique with
significantly higher
yields and lower
investment cost.
Tuscany International US$2.25m subscription A (now) listed Brazilian
Drilling for ordinary shares oil drilling services
company.
Union Agriculture US$2m subscription for Uruguayan farming company
ordinary shares after which is now the largest
the year-end Further $1m owner of agricultural
in ordinary shares land in Uruguay and
applying capital and
agronomy expertise to
enhance its value. Union
is currently planning to
list in the USA.
We also hold securities in Rock Well Petroleum (discussed below), Develica Asia
Pacific, Continental Petroleum and China Molybdenum; these are carried at nil or
negligible value.
Top Ten Investments as at 31 March 2011
The following table lists our top ten investments by value as at 31 March 2011:
Where we hold more than one instrument in a company, the holdings have been
aggregated.
Company Cost Valuation Gain/(Loss) Status
GBP 000's GBP 000's GBP 000's
HRT Participacoes em Petroleo * 2 8,777 8,775 Listed
Nusantara Energy 2,261 6,136 3,857 Unquoted
Buried Hill Energy 1,750 5,775 4,025 Unquoted
Red Flat Nickel 2,270 4,366 2,096 Unquoted
Providence Resources 3,534 3,692 158 Listed
RAM Resources 1,683 3,374 1,691 Unquoted
Seven Energy 3,120 3,119 (1) Unquoted
Ilika Technologies 2,500 3,310 810 Listed
Brazil Potash 1,526 3,087 1,561 Unquoted
Union Agriculture 1,878 2,767 889 Unquoted
_______ _______ _______
Total 20,524 44,403 23,879
======= ======= =======
* Subsequently sold
Other Significant Developments
There are many companies in the portfolio which look very promising and which
should show significant uplifts. We highlight here some of the larger
investments where there has been specific relevant news and other significant
developments.
Nusantara Energy, which has a large coal resource in Sumatra, Indonesia, is
currently in the late stages of a trade sale. Buried Hill, which has large oil
deposits in the Caspian Sea, Turkmenistan, is moving to complete its farm-in
deal for these deposits and is planning to float once this is completed. Brazil
Potash has benefited from the re-rating of the mineral following BHP's bid for
Potash Corp given the size of its potash resource. The company is currently
completing a further equity round at a large premium to the price at which we
invested.
Two of our companies, Union Agriculture and RAM Minerals (now re-named First
Iron) are well advanced with IPOs. TMO Renewables has secured orders in both
China and the United States for its second generation bio-ethanol process and
should also be able to proceed to flotation. Mincore, a company which had
focussed on molybdenum has discovered very large copper deposits sitting
alongside its molybdenum interests and this should enable it to progress to
public status.
Astrakhan Oil, in which we invested in March 2011, is currently raising further
funds at a large premium to our investment price with a view to further
acquisitions and an early flotation. Seven Energy has raised further
substantial funds from Petrofac and is on track in its flotation plans.
We hold shares and a loan note in Dominion Minerals, a company which had
acquired a licence to explore a highly prospective area in Panama for copper.
Legal problems in Panama have led to the licence being suspended and the
company has defaulted on our loan. We have exercised our security over the
subsidiary holding the licence and are taking action to protect our position.
Although many of our quoted holdings continue to progress their development, the
weaker market for smaller companies (particularly in resources) over the last
quarter has affected their share prices. In particular, Creso has reported
various drilling results including some very successful holes, but its shares
have fallen back recently, partly as a result of a proposed joint venture which
was aborted.
Following a settlement of a claim in respect of our investment in Rock Well
Petroleum on 5 July 2011, we have received GBP395,000 from Numis Securities
Limited.
Pipeline and Prospects
The reduced competition in pre-IPO financing has enabled us to strike some
exceptional deals, exploiting the large arbitrage gap between pre-IPO and public
companies. We are now focused on seeking to harvest the results of our
investments as companies in the portfolio reach liquidity events.
In addition, we are reinvesting the cash we have realised over recent months
where we continue to see compelling near-term return opportunities which should
generate significant value for shareholders.
Tim Childs as Investment Advisor to
St Peter Port Investment Management Limited
Statement of Financial Position
As at 31 March 2011
Notes As at 31 March 2011 As at 31 March 2010
Assets GBP 000 GBP 000
Financial assets designated at
fair value through profit or loss 73,095 63,278
Trade and other receivables 5,839 4
Cash and cash equivalents 12,649 8,012
_______ _______
Total assets 91,583 71,294
======= =======
Liabilities
Current liabilities
Financial liabilities designated
at fair value through profit or
loss 3,185 *
Trade and other payables 3,418 180
Total liabilities 6,603 180
Net assets 84,980 71,114
Equity
Capital and reserves attributable
to equity holders of the company
Share capital - -
Share premium - -
Special reserve 68,498 70,898
Treasury reserve 2,733 1,535
Retained earnings 13,749 (1,319)
_______ _______
Total Equity 84,980 71,114
======= =======
Net asset value per share (pence
per share) 4 120.80 97.75
Statement of Comprehensive Income
For the year ended 31 March 2011
Year ended Year ended
Notes 31 March 2011 31 March 2010
GBP 000's GBP 000's
Income
Net changes in fair value on financial assets 20,683 (3,948)
Unrealised (loss)/gain on foreign exchange 62 (21)
Interest income 110 220
_______ _______
Net investment income 20,855 (3,749)
Administrative expenses (2,387) (2,135)
Withholding tax (3,399) -
_______ _______
Net income from operations before finance
costs 15,069 (5,884)
Interest expense (1) (1)
_______ _______
Total finance costs (1) (1)
_______ _______
Profit/(loss)/ for the year 15,068 (5,885)
======= ======
Basic and diluted return per Ordinary Share
(pence) 3 20.98 (8.07)
Statement of Changes in Equity
For the year ended 31 March 2011
Notes Share Special Treasury Revenue
Premium Reserve Reserve Reserve Total
GBP 000's GBP 000's GBP 000's GBP 000's GBP 000's
Opening balance - 70,898 1,535 (1,319) 71,114
Profit for the year - - - 15,068 15,068
Repurchased shares - - 1,198 - 1,198
Ordinary shares repurchased - (2,400) - - (2,400)
_______ _______ _______ _______ _______
Balance at 31 March 2011 - 68,498 2,733 13,749 84,980
======= ====== ======= ====== =======
FOR THE YEAR ENDED 31 MARCH 2010
Opening balance - 71,198 1,364 4,566 77,128
Profit for the period - - - (5,885) (5,885)
Repurchased shares held in
treasury - - 171 - 171
Ordinary shares repurchased - (300) - - (300)
_______ _______ _______ _______ _______
Balance at 31 March 2010 - 70,898 1,535 (1,319) 71,114
======= ====== ======= ====== =======
Statement of Cash Flows
For the Year Ended 31 March 2011
Notes Year ended Year ended
31 March 2011 31 March 2010
Cash flows from operating activities GBP 000's GBP 000's
Interest received 573 456
Interest paid (1) (1)
Operating expenses paid (5,608) (2,082)
Prepayments to brokers (2,475) -
Loans granted to portfolio companies - (1,575)
Loan payments received from portfolio
companies - 502
Sale of investments 14,771 877
Purchase of investments (1,421) (12,611)
_______ _______
Net cash used in operating activities 5,839 (14,434)
_______ _______
Cash flows from financing activities
Purchase of treasury shares (1,202) (129)
_______ _______
Cash outflow from financing activities (1,202) (129)
Cash inflow/(outflow)/ for the year 4,637 (14,563)
Opening cash and cash equivalents 8,012 22,575
_______ _______
Closing cash and cash equivalents 12,649 8,012
======= =======
1. General Information
St Peter Port Capital Limited is a Guernsey registered, closed ended investment
company, listed on the London Stock Exchange's Alternative Investment Market
(AIM). St Peter Port's investment strategy is primarily to invest in unquoted
companies which are close to a liquidity event. The funds invested by St Peter
Port will often provide the working capital to make such an event possible. The
event could be an IPO, trade sale or repayment of a bridging loan (typically
with warrants or other form of participation) from a fund-raising achieved by
the investee at a higher price after the bridging event has occurred.
The universe for investment is principally companies across a broad range of
sectors and geography expecting to achieve a liquidity event in the months after
the Company's investment. However, in current conditions, it may also include
companies which are already publicly quoted but where the equity value has been
heavily eroded by the current market malaise. The initial focus has been on
companies targeting UK, US and Commonwealth stock markets, but companies looking
to float on other exchanges will also be considered.
The company's website is www.stpeterportcapital.gg.
2. Financial Information
The report on the full financial statements for the year ended 31 March 2011 is
yet to be signed and accordingly the information presented in this preliminary
announcement is unaudited. In addition, whilst the financial information
included in this preliminary announcement has been computed in accordance with
IFRS, this announcement does not itself contain sufficient information to comply
with IFRS. The Company expects to publish full financial statements that comply
with IFRS before 31 July 2011. The accounting policies used in arriving at the
preliminary figures are consistent with those which will be published in the
full financial statements.
3. Earnings Per Share
The calculation of basic (loss)/earnings per share is based on the net
(loss)/profit from continuing operations for the year of ( GBP15,068,000) (2010:
GBP5,885,000) and on 71,813,700 (2010: 72,900,000) shares being the weighted
average number of shares in issue during the year. There is no difference
between basic earnings per share and diluted earnings per share.
4. Net Asset Value per Share
31 March 2011 31 March 2010
GBP 000's GBP 000's
Net Asset Value 84,980 71,114
Ordinary Shares in issue 70,350 72,750
Net Asset Value per Ordinary Share (pence per share) 120.80 97.75
The Net Asset Value per Ordinary Share is based on the Net Asset Value at the
end of the reporting period and on 70,350,000 (2010: 72,750,000) Ordinary Shares
being the shares in issue at the year end.
5. Taxation
The Company has not suffered corporate income taxation.
6. Subsequent Events
As referred to in the Chairman's Statement, on 6 July 2011, the board of
directors proposed a dividend of 3p per share, payable on 24 August 2011. It
also proposes to pay an additional special dividend of 2 pence per share to
reflect the profitability of the financial year, to be paid at the same time.
On 8 July 2011, the Company received GBP395,000 from Numis Securities Limited in
respect of a claim in connection with investment Rock Well Petroleum.
Investments made following the year end are described in the Investment
Manager's Report above, and were as follows; A further CDN$2 million in Mongolia
Minerals, US$2 million in Ironco LLC (to be exchanged for an investment in
Manabi Holding SA) and CDN$2 million in Global Atomic Fuels Corporation.
On 26 October 2010 the Company bought back 2,400,000 of its own shares at 50
pence per share, a large discount to the then prevailing net asset value per
share. These shares were cancelled on 14 June 2011.
7. 2011 Report and Accounts
Copies of the 2011 accounts will be posted to shareholders in due course. Copies
of this announcement (and the 2011 accounts in due course) are available from
the Company at PO Box 119, Martello Court, Admiral Park, St Peter Port,
Guernsey, GY1 3HB or alternatively on the Company's website at:
www.stpeterportcapital.gg.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: St Peter Port Capital Limited via Thomson Reuters ONE
[HUG#1530546]
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