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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| F&C Private Equity Trust | LSE:FPEO | London | Ordinary Share | GB0030738271 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 336.00 | 331.00 | 337.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
TIDMFPEO
RNS Number : 9912P
F&C Private Equity Trust PLC
24 November 2016
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24 November 2016
F&C Private Equity Trust plc
Quarterly results for the three month period ended 30 September 2016
-- NAV total return per Ordinary Share of 3.4 per cent for the three month period ended 30 September 2016. 11.9 per cent for the nine month period ended 30 September 2016.
-- Share price total return per Ordinary Share of 12.5 per cent for the three month period ended 30 September 2016. 14.4 per cent for the nine month period ended 30 September 2016.
Manager's Review
Introduction
As at the 30 September 2016 the Company's net asset value (NAV) was GBP240.1 million giving a fully diluted NAV per share of 324.75p, an increase over the quarter of 3.4 per cent. During the period sterling has continued to weaken and this has given rise to a positive currency influence of around 1.8 per cent. A healthy level of activity has been seen with realisations comfortably exceeding drawdowns. As previously announced an interim dividend of 6.12p per share was paid on 4 November 2016.
At the end of the period the Company had a cash position of GBP32.1 million. Together with borrowings of GBP25.4 million, under the Company's loan facility, net cash was GBP6.7 million. During the quarter combined realisations and income totalled GBP19.4 million and drawdowns from funds totalled GBP4.8 million. There were no new co-investments during the quarter. The total of outstanding undrawn commitments at 30 September was GBP107.5 million and of this around GBP17 million is to funds where the investment period has expired.
New Investments
The third quarter has been an active one for fresh commitments to private equity funds. The emphasis has been on strengthening some of our longstanding European relationships whilst selectively adding new ones. The European mid-market for buyouts is our focus. New commitments are as follows: GBP5 million to Piper Private Equity VI, the consumer brands specialists whom we have backed three times before; EUR9 million to Bencis V, the Benelux focused mid-market fund investing in companies with enterprise values in the range EUR20-EUR100 million; EUR5 million to Montefiore IV, a primarily France-focused fund investing in the EUR25-EUR250 million size range, and EUR6.3 million and EUR1.2 million respectively to DBAG VII and DBAG VII B which will invest in German speaking European deals in the EUR75-EUR250 million size range. After the quarter end we have committed to two Nordic focused funds: EUR7 million to Procuritas VI and EUR4 million (40 million SEK) to Summa I. Procuritas is a long standing relationship, but Summa is a new emerging manager bringing together executives from leading Nordic houses.
There were no new co-investments in the quarter but after the quarter end we have invested GBP2.6 million for 12 per cent of Babington, the Derby-based provider of apprenticeships and other business training courses. This deal is led by RJD Partners, with whom we have a longstanding link. The investment thesis is based around the government mandated growth in apprenticeships which is coming through over the next few years, in part funded by the apprenticeship levy.
New investments made by the funds have included GBP0.7 million for Barber of Sheffield, a provider of consumables to the large and growing tattoo parlour sector (RJD Private Equity III), GBP0.6 million for Questionmark, a provider of human resources and assessment and certification tools (FPE II), GBP0.3 million for HRA Pharma, a France based speciality pharmaceutical company (Astorg VI), GBP0.3 million for Palex, a Spanish distributor of healthcare equipment (Corpfin Capital IV) and GBP0.2 million for Orbis, a company running autism specialist schools in Wales (August Equity Partners III), amongst several others.
Realisations
Total realisations for the quarter were GBP19.4 million, bringing the year to date total to GBP38.6 million, which is almost 70 per cent of the amount at the same stage last year, an exceptional year for exits. There have been a number of notable successes. As mentioned in the previous report, our investment in the Agilitas-led deal, Ionisos, gave us exposure to a fast growing company involved in the cold sterilisation market in France and neighbouring countries. This uses the radioactive isotope Cobalt 60 to sterilise medical equipment and packaging. After a hold period of only 19 months Agilitas sold the company to leading French private equity house, Ardian, achieving an excellent return of 2.9x and an IRR of 97 per cent. The proceeds were GBP5.2 million. This is an excellent example of the benefits of investing in unusual niche companies with strongly growing underlying markets into which they can gain market share and where there are significant barriers to entry.
Another successful niche company Marston, was sold by Inflexion to ICG achieving an excellent return to us, across two funds, of GBP5.4 million. Marston is now the UK's leading debt enforcement business, having been repositioned from being a regional collector of limited debt types to the only national collector across multiple liabilities for both government and commercial clients. Chequers Capital has exited TCR, the Belgium based leasing company specialising in ground support equipment for aircraft. This returned GBP0.9 million representing 8.6x cost and an IRR of 26 per cent. Corpfin Capital IV have sold Spanish logistics company, Logiters, to a trade buyer achieving 11x cost and returning GBP0.5 million; Herkules Private Equity III sold Norway based Harding, the leading life boat producer to Palfinger. This company has faced challenging conditions given the depressed oil sector, a major market for them, but the proceeds of GBP0.7 million represented 1.4x cost and an IRR of 13 per cent. Lastly the Environmental Technologies Fund has exited Enbalon, a provider of enterprise stability software, through a sale to Wolters Kluwer achieving 3x cost and an IRR of 23 per cent and proceeds of GBP0.8 million.
Valuation Changes
There have been a number of modest, but cumulatively significant, uplifts over the quarter. DBAG V is up by GBP0.8 million reflecting good progress across several holdings. Procuritas Capital IV is up by GBP0.5 million mainly reflecting an uplift for ice cream machine manufacturer Green Magnum. In the co-investment portfolio Park Holidays, our caravan holiday park investment, is trading well and is up by GBP0.7 million and Avalon, the funeral plans business led by Lonsdale, is also trading well and is up by GBP0.5 million. On the negative side Hutton Collins Capital Partners III is down by GBP0.6 million, mainly reflecting a write-down for Byron Burgers which had a well-publicised incident involving the immigration authorities, which has resulted in a damaging, but probably temporary, loss of sales in July and August. The portfolio of Italian funds (PM & Partners II, Progressio II, Mid-Capital Mezzanine and ILP III) was down by GBP0.5 million reflecting, amongst other factors, a decline in the price of quoted company Italian Wine Brands.
Financing
The Company is currently in a net cash position with effectively all of its GBP70 million borrowing facility available. The portfolio is very broadly based and provides a very suitable asset base against which to borrow. It is the Company's intention to employ a moderate amount of gearing to enhance returns to shareholders over the long term. The recent past has seen a continuation of the strong flow of realisations and this has kept the balance sheet ungeared. A number of investment opportunities are under consideration which could move the balance sheet back into a modestly geared position over the coming months. The Company's level of outstanding commitments has been increased deliberately in order to make sure that the proceeds of realisations are deployed steadily and broadly across our favoured markets.
Outlook
The last few months have seen an unusual amount of political change, but limited economic consequences of these changes as yet. The private equity market in Europe continues to pursue and make deals in a largely unaltered way, factoring in, as far as possible, the expected changes arising from Brexit or the handover in the US Presidency. The exits from our portfolio show quite clearly the benefits of investing into the lower mid-market of Europe, namely that there is a very wide range of specialised and basically undiscovered businesses which are able to achieve strong growth through concentrating on their particular niche markets. Our investment partners, who are found in every corner of the Continent and further afield, spend much of their energy in the search for such attractive opportunities, usually building deep local networks with company owners, advisers and investors. They also develop or acquire the specific skills and knowledge to implement value creative change in the companies in which they invest. In every case our investments are arranged such that the interests of our investment partners, those of company management and of our shareholders are directly and closely aligned. The combination of deliberative, informed selection followed by highly-motivated, involved, value-creative change is what distinguishes private equity from other forms of investment management and provides the basis of strong long term returns. From here we expect further growth in shareholder value in the remainder of the year.
Hamish Mair
Investment Manager
F&C Investment Business Limited
F&C Private Equity Trust plc
Statement of Comprehensive Income for the
nine months ended 30 September 2016
(Unaudited)
Revenue Capital Total
GBP'000 GBP'000 GBP'000
------------------------------------------------- --------- --------- ---------
Income
Gains on investments held at fair value - 33,962 33,962
Exchange losses - (3,927) (3,927)
Investment income 630 - 630
Other income 45 - 45
------------------------------------------------- --------- --------- ---------
Total income 675 30,035 30,710
------------------------------------------------- --------- --------- ---------
Expenditure
Investment management fee - basic fee (424) (1,273) (1,697)
Investment management fee - performance
fee - (1,508) (1,508)
Other expenses (547) - (547)
------------------------------------------------- --------- --------- ---------
Total expenditure (971) (2,781) (3,752)
------------------------------------------------- --------- --------- ---------
(Loss)/profit before finance costs and taxation (296) 27,254 26,958
Finance costs (313) (940) (1,253)
------------------------------------------------- --------- --------- ---------
(Loss)/profit before taxation (609) 26,314 25,705
Taxation - - -
(Loss)/profit for period/total comprehensive
income (609) 26,314 25,705
================================================= ========= ========= =========
Return per Ordinary Share - Basic (0.84)p 36.04p 35.20p
Return per Ordinary Share - Fully diluted (0.83)p 35.59p 34.76p
================================================= ========= ========= =========
F&C Private Equity Trust plc
Statement of Comprehensive Income for the
nine months ended 30 September 2015
(Unaudited)
Revenue Capital Total
GBP'000 GBP'000 GBP'000
---------------------------------------------- ---------- ---------- ----------
Income
Gains on investments held at fair value - 16,782 16,782
Exchange gains - 2,011 2,011
Investment income 5,100 - 5,100
Other income 34 - 34
---------------------------------------------- ---------- ---------- ----------
Total income 5,134 18,793 23,927
---------------------------------------------- ---------- ---------- ----------
Expenditure
Investment management fee - basic fee (380) (1,139) (1,519)
Investment management fee - performance
fee - (1,293) (1,293)
Other expenses (507) - (507)
---------------------------------------------- ---------- ---------- ----------
Total expenditure (887) (2,432) (3,319)
---------------------------------------------- ---------- ---------- ----------
Profit before finance costs and taxation 4,247 16,361 20,608
Finance costs (346) (1,039) (1,385)
---------------------------------------------- ---------- ---------- ----------
Profit before taxation 3,901 15,322 19,223
Taxation (788) 788 -
Profit for period/total comprehensive income 3,113 16,110 19,223
============================================== ========== ========== ==========
Return per Ordinary Share - Basic 4.32p 22.31p 26.63p
Return per Ordinary Share - Fully diluted 4.20p 21.72p 25.92p
============================================== ========== ========== ==========
F&C Private Equity Trust plc
Statement of Comprehensive Income for the
year ended 31 December 2015
(Audited)
Revenue Capital Total
GBP'000 GBP'000 GBP'000
-------------------------------------------- --------- --------- ---------
Income
Gains on investments held at fair value - 17,401 17,401
Exchange gains - 2,072 2,072
Investment income 7,562 - 7,562
Other income 48 - 48
-------------------------------------------- --------- --------- ---------
Total income 7,610 19,473 27,083
-------------------------------------------- --------- --------- ---------
Expenditure
Investment management fee - basic fee (509) (1,528) (2,037)
Investment management fee - performance
fee - (1,342) (1,342)
Other expenses (696) - (696)
-------------------------------------------- --------- --------- ---------
Total expenditure (1,205) (2,870) (4,075)
-------------------------------------------- --------- --------- ---------
Profit before finance costs and taxation 6,405 16,603 23,008
Finance costs (448) (1,345) (1,793)
-------------------------------------------- --------- --------- ---------
Profit before taxation 5,957 15,258 21,215
Taxation (931) 931 -
Profit for year/total comprehensive income 5,026 16,189 21,215
============================================ ========= ========= =========
Return per Ordinary Share - Basic 6.97p 22.44p 29.41p
Return per Ordinary Share - Fully diluted 6.78p 21.85p 28.63p
============================================ ========= ========= =========
F&C Private Equity Trust plc
Amounts Recognised as Dividends
Nine months Nine months Year
ended ended ended
30 September 30 September 31 December
2016 (unaudited) 2015 (unaudited) 2015 (audited)
GBP'000 GBP'000 GBP'000
-------------------------------------------- ------------------ ------------------ ----------------
Final Ordinary Share dividend of 5.45p
per share for the year ended 31 December
2014 - 3,939 3,939
Interim Ordinary Share dividend of
5.58p per share for the year ended
31 December 2015 - - 4,017
Final Ordinary Share dividend of 5.83p 4,251 - -
per share for the year ended 31 December
2015
-------------------------------------------- ------------------ ------------------ ----------------
4,251 3,939 7,956
============================================ ================== ================== ================
F&C Private Equity Trust plc
Balance Sheet
As at 30 As at 30 As at 31
September September December
2016 2015 (unaudited) 2015
(unaudited) (audited)
GBP'000 GBP'000 GBP'000
--------------------------------------- ------------- ------------------ -----------
Non-current assets
Investments at fair value through
profit or loss 235,892 231,243 215,711
--------------------------------------- ------------- ------------------ -----------
Current assets
Other receivables 21 26 26
Cash and cash equivalents 32,081 10,890 24,023
--------------------------------------- ------------- ------------------ -----------
32,102 10,916 24,049
Current liabilities
Other payables (2,508) (2,715) (2,278)
Net current assets 29,594 8,201 21,771
--------------------------------------- ------------- ------------------ ----------- Total assets less current liabilities 265,486 239,444 237,482 Non-current liabilities Interest-bearing bank loan (25,361) (21,299) (21,357) --------------------------------------- ------------- ------------------ ----------- Net assets 240,125 218,145 216,125 ======================================= ============= ================== =========== Equity Called-up ordinary share capital 739 720 720 Special distributable capital reserve 17,567 15,035 15,040 Special distributable revenue reserve 31,403 31,403 31,403 Capital redemption reserve 1,335 1,335 1,335 Capital reserve 180,065 161,940 158,002 Revenue reserve 9,016 7,712 9,625 --------------------------------------- ------------- ------------------ ----------- Shareholders' funds 240,125 218,145 216,125 ======================================= ============= ================== =========== Net asset value per Ordinary Share - Basic 324.75p 303.05p 300.25p Net asset value per Ordinary Share - Fully diluted 324.75p 298.47p 295.74p ======================================= ============= ================== ===========
F&C Private Equity Trust plc
Reconciliation of Movements in Shareholders' Funds
Nine months Nine months Year ended
ended 30 September ended 30 September 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
--------------------------------- -------------------- -------------------- -------------
Opening shareholders' funds 216,125 203,508 203,508
Issue of Ordinary Shares 2,546 - -
Cancellation of Ordinary Shares - (647) (642)
Profit for the period/total
comprehensive income 25,705 19,223 21,215
Dividends paid (4,251) (3,939) (7,956)
Closing shareholders' funds 240,125 218,145 216,125
================================= ==================== ==================== =============
Notes (unaudited)
1. The unaudited quarterly results have been prepared on the basis of the accounting policies set out in the statutory accounts of the Company for the year ended 31 December 2015. Earnings for the nine months to 30 September 2016 should not be taken as a guide to the results for the year to 31 December 2016.
2. Investment management fee:
Nine months ended Nine months ended Year ended 31 December
30 September 2016 30 September 2015 2015
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Investment
management
fee - basic fee 424 1,273 1,697 380 1,139 1,519 509 1,528 2,037
Investment
management
fee - performance
fee - 1,508 1,508 - 1,293 1,293 - 1,342 1,342
424 2,781 3,205 380 2,432 2,812 509 2,870 3,379
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
3. Finance costs:
Nine months ended Nine months ended Year ended 31 December
30 September 2016 30 September 2015 2015
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ --------- --------- --------- --------- --------- --------- --------- --------- ---------
Interest payable
on bank loan 313 940 1,253 346 1,039 1,385 448 1,345 1,793
4. The basic return per Ordinary Share is based on a net profit on ordinary activities after taxation of GBP25,705,000 (30 September 2015 - GBP19,223,000; 31 December 2015 - GBP21,215,000) and on 73,017,623 (30 September 2015 - 72,197,658; 31 December 2015 - 72,143,369) shares, being the weighted average number of Ordinary Shares in issue during the period.
The fully diluted return per Ordinary Share is based on a net profit on ordinary activities after taxation of GBP25,705,000 (30 September 2015 - GBP19,223,000; 31 December 2015 - GBP21,215,000) and on 73,941,429 (30 September 2015 - 74,156,814; 31 December 2015 - 74,102,525) shares, being the weighted average number of Ordinary Shares in issue during the period after conversion of the Ordinary Share warrants.
5. The basic net asset value per Ordinary Share is based on net assets at the period end of GBP240,125,000 (30 September 2015 - GBP218,145,000; 31 December 2015 - GBP216,125,000) and on 73,941,429 (30 September 2015 - 71,982,273; 31 December 2015 - 71,982,273) shares, being the number of Ordinary Shares in issue at the period end.
The fully diluted net asset value per Ordinary Share is based on net assets at the period end of GBP240,125,000 (30 September 2015 - GBP220,691,000; 31 December 2015 - GBP218,671,000) and on 73,941,429 (30 September 2015 - 73,941,429; 31 December 2015 - 73,941,429) shares, being the number of Ordinary Shares in issue at the period end after conversion of the Ordinary Share warrants.
6. During the period, the Company issued 1,959,156 Ordinary Shares of 1p each in capital of the Company for a consideration of GBP2,546,000, payable in cash, following the exercise of subscription rights by holders of a corresponding number of management warrants previously issued by the Company in the capital of the Company. The surplus of cash received for the issue of shares over the par value of such shares is GBP2,527,000 and is credited to the special distributable capital reserve. No warrants remain in issue.
7. The financial information for the nine months ended 30 September 2016, which has not been audited or reviewed by the Company's auditor, comprises non-statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2015, on which the auditor issued an unqualified report, have been lodged with the Registrar of Companies. The quarterly report is available on the Company's website www.fcpet.co.uk.
For more information, please contact:
F&C Investment Business Limited 0131 718 1000
This information is provided by RNS
The company news service from the London Stock Exchange
END
QRTUORBRNUAAUAA
(END) Dow Jones Newswires
November 24, 2016 02:00 ET (07:00 GMT)
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