Dunedin Enterprise Inv Trust PLC 1st Quarter Results (8639E)

TIDMDNE

RNS Number : 8639E

Dunedin Enterprise Inv Trust PLC

11 May 2017

Dunedin Enterprise Investment Trust PLC (Company No SC52844) - Quarterly Update

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 net asset value of the Trust in a similar format to that previously provided in the IMS on a quarterly basis. This net asset value update is as at 31 March 2017.

   1.       Unaudited net asset value per share 

The unaudited net asset value per share at 31 March 2017 was 506.1p. This represents an increase of 0.6% from the level at 31 December 2016. This is stated prior to the final dividend of 17.5p per share payable on 18 May 2017.

   2.       Share price 

The share price has increased by 12.7% from 306p to 345p in the quarter to 31 March 2017. This compares to an increase in the FTSE Small Cap Index of 5.4% over the same period. The discount to net asset value at 31 March 2017 was 31.8%.

   3.       Balance Sheet 

The unaudited balance sheet as at 31 March 2017 is noted below:-

 
                                GBP'm 
Investments:- 
Dunedin managed                  80.0 
Third party managed              20.1 
 
                                100.1 
Cash and near cash (*1)          12.2 
Other assets and liabilities    (7.8) 
                               ------ 
 
Total net assets                104.5 
                               ====== 
 
Net asset value per share 
 (p)                           506.1p 
                               ====== 
 

(*1) - stated before drawdown for FRA which will be up to GBP7.3m and a final dividend of GBP3.6m

   4.       Net asset value movements 

The portfolio of investments has been re-valued at 31 March 2017. The increase in net asset value in the quarter can be attributed to:-

-- Within the Dunedin managed portfolio there were valuation increases at Kee Safety (GBP0.9m), Alpha (GBP0.5m), Blackrock (GBP0.4m) and Kingsbridge (GBP0.2m). Maintainable earnings at Kee Safety continue to grow both organically and by acquisition. Each of Blackrock, Alpha and Kingsbridge have benefited from an increase in maintainable earnings.

-- These valuation increases have been offset by decreases in valuation at CitySprint (GBP0.5m), Formaplex (GBP0.2m), and Premier (GBP0.2m). CitySprint has been impacted by a softer market and increased competition. Formaplex has been impacted by an increased working capital requirement. Premier Hytemp continues to be impacted by the lower oil price albeit that it is trading ahead of budget.

   5.      New investment and realisations 

New investments in the quarter totalled GBP8.0m. An investment of up to GBP7.3m was made in Forensic Risk Alliance ("FRA"). FRA is an international consultancy business that provides forensic accounting data analytics and e-discovery to help businesses manage risk in an increasingly regulated global environment.

A further GBP0.3m was drawn down by Innova/5 for a follow-on investment in a current portfolio company.

Management fees accounted for GBP0.4m.

In February Steeper was realised generating proceeds of GBP8.9m of which GBP6.7m is capital and GBP2.2m is income. The overall return to Dunedin Enterprise was 1.9 times the original investment of GBP5.6m. A further GBP0.8m was received from Innova/5 being the final proceeds from the sale of WP. Overall this investment has generated a return of 2.7 times original cost.

   6.       Cash and Commitments 

The Company had cash and near cash balances of GBP12.2m at 31 March 2017. In addition the Company has a revolving credit facility of GBP20m available until 31 May 2018.

As at 31 March 2017 the Company had outstanding capital commitments to limited partnership funds of GBP36.6m. This is stated before the drawdown for FRA and the final dividend both of which will be made in May 2017. The cash balance following each of these outflows will reduce to GBP1.3m with outstanding commitments also being

reduced to GBP29.3m.   Of this GBP29.3m it is forecast that approximately GBP13m will be drawn. 

The Board and Manager remain satisfied with the balance between available credit facilities and outstanding commitments given the expected rate of new investment and potential realisations of existing investments.

   7.         Dividend 

A final dividend of 17.5p per share is payable to shareholders on 18 May 2017.

   8.       Outlook 

The Board remains committed to maximising shareholder value through an orderly wind-down process. This could be achieved partly by the judicious and timely sales 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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May 11, 2017 05:52 ET (09:52 GMT)