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Candover Investments Share Discussion Threads
Showing 651 to 670 of 675 messages
|Results next week and i bought a few for just under a £1. Hope net assett value is at least £1.50. The euro is a lot stronger so even though parques has fallen sterling is also down sharply.|
|Many thanks Tiltonboy
Management certainly played a blinder negotiating an effective 20.6% interest rate!
So Numis go with a £1.55 NAV, certainly closer than Liberium imo.|
|● Numis views: Candover’s expensive debt facility leaves it with little flexibility. In mid-July 2015, the fund agreed a term loan facility with 17Capital, a specialist provider of debt, for up to €52m (£37.1m). The headline PIK interest on the loan is 13%pa, but the terms on minimum repayments mean that the loan has been accruing interest at 20.6%. Shareholders were obviously disappointed with the lack of a prospect of a cash distribution as the shares were down 10% yesterday to 126p. This represents a 19% discount to our estimated NAV, however, we see little value and Candover remains a high risk investment because the fund is small (£27m market cap), with a concentrated portfolio and expensive finance.|
The decision to repay the debt is the obvious option given the punitive nature of the terms of the company's debt facility. Following the recent IPOs of two portfolio companies and FX movements, we calculate a pro-forma NAV estimate of c.180p per share. The shares currently trade on a 31% discount to this pro-forma NAV estimate.|
|This RNS is ridiculous. They are explaining why they are not paying a dividend but paying down their expensive debt facility. Are they thick or just plain stupid? I'm sure most shareholders want the Board to pay down the debt BEFORE we get a dividend and not AFTER. This investment trust has died in a sea of debt and still they can't get a grip on the error of their ways. Not impressed!|
|Yeah, point taken regards VLE.|
|Some seem to be very conservative - NRI and your favourite VLE appear good examples but CDI has been an unmitigated diasaster.|
Have Liberum updated their figures.
With today news I get:
Net Debt (11.2m)
Other bits and pieces from 31/12 2.6m
NAV £30.6m or £1.43 per share.
No longer holding, but interested in a morbid sort of way :-)|
|Blimey what a rubbish job management and the Investment Manager have done. Pretty much everything sold / nearly sold and they still don't have a net cash balance. An absolute disaster. Investment Manager and Director fees along with debt interest continues to drag against any recovery. It's starting to look like we may get virtually nothing!|
|There's also the possibility that both IPO's were priced at low end valuations, and will rise over the comimg 180 days? But I have my doubts!|
So it looks like Liberum have written down Parques and Technogym in the investment portfolio but haven't updated running costs or the roll up of interest...........
unless i'm wide of the mark with the increased debt!|
|Candover has announced the partial realisation of 62.5% of its Technogym investment, following the IPO of the company. The sale generated net cash proceeds of £11.7m; the remaining interest is valued £7.6m at the IPO price and the shares are subject to a 180 day lock up from the first day of dealing in the shares (3 May 2016).
The IPO price implies a 14.2% write down from the carrying value of the holding, which was valued at £22.5m at 31 December 2015; we calculate a NAV impact of -14.5p (6%). This is conjunction with the NAV writedown incurred on the Parques Reunidos IPO price implies a total writedown of 22% or 51.5p
Candover will retain a 1.5% interest in Technogym (subject to a greenshoe option). This holding will continue to managed by Arle, which will manage, in aggregate, 15% of Technogym, reducing to 11.25% if the greenshoe is fully exercised.
Following the receipt of proceeds from the Technogym IPO, the Parques Reunidos IPO (announced yesterday) and the partial realisation of Stork BV (July 2015), the company will have gross cash balances £34.2m, and pro-forma net debt of £11.2m.
Parques Reunidos and Technogym are the two largest investments in Candover's portfolio (together 124% of NAV at 31 December 2015), while these realisations would normally be positive for the share rating, the NAV writedowns implied by the Technogym and Parques Reunidos IPO prices detract from this and will make it difficult to meet the pre-distribution test on the debt facility. The refinancing facility allows for the first £21.8m of realisation proceeds (100p per share) to be returned to shareholders with all subsequent proceeds used to pay down debt. The initial return of cash is subject to a pre-distribution test that the portfolio value is at least twice the debt. The investment portfolio was valued at £82.6m at 31 December 2015 and we calculate a pro-forma value of £71.2m after adjusting for the markdown on Parques Reunidos and Technogym. We estimate the cover is currently c.1.7x, which would preclude any distributions.
Candover currently trades on a 23% discount to our pro-forma NAV estimate of 191.5p, which includes the implied NAV writedowns from Parques Reunidos and Technogym.|
|No near-term distribution either!|
|Taking today's figures of gross cash of £34.2m and implied gross debt of £45.4m (up from £39.7m 31/12/16!) I struggle to get up to the Liberum figure.
Net Debt (11.2m)
Other bits and pieces from 31/12 2.6m
NAV £30.7m or £1.43 per share.
The increased debt figure seems to be the variation? Do you have any breakdown of the liberum figures Tiltonboy?|
|Thnx for that everyone. with a near-term distribution to come, perhps a HOLD, but not a BUY...|
|Liberum have NAV at 191.5p|
31/12/15 PR was valued at £43.4M, Techono at £22.5, Stork £14.1M and net debt was £33.2m.
29/04/16 PR has been written down to £35.3M, Techno to £19.3M. Partial realisations give cash of £14.3M and the residual will then be valued at £40.3M.
So by my reckoning net assets of £55.2M (243pps) at 31/12/15 are now £43.9M which would make maximum nav around £1.95.|
|Err net debt is gross cash - gross debt, no? ie there's negative net cash?|
|Agree with all of that of course; but has the Market got it wrong:
Extract from today's RNS on Technogym IPO:
"The proceeds from the IPO, together with the proceeds received from the
realisation of Stork BV and the partial realisation of Parques, will result in
Candover having gross cash balances of GBP34.2 million, and proforma net debt of
So, Net cash of £23m versus a MCap of £32m
But CDI is also left with holdings in Technogym notionally worth £7.6m & PR notionally worth £32.7m.
So assets of £63m versus MCap OF £32m; and an early capital repayment on the cards.
Can someone run through the numbers and tell me I'm being an idiot...; but if those stats stack up, I may buy back in again!|
|Another part disposal well below book value. Unfortunately, we have all been had here by a company that has overvalued its investments. Most private equity groups made a profit on their disposals, but not Candover. Always very difficult with private equity groups to know whether their valuations are racy, realistic or prudent. We know that Candover must have been at the racy end of the spectrum when they can't even sell their best investments for anything like book value. Bit of a disgrace really. Lets face it over the last few years, they have made a loss on pretty much everyone of their investments. We will be lucky to get any cash back at this rate. A real disappointment versus their earlier successes in the credit boom.|