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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Bmo Private Equity Trust Plc | LSE:BPET | 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% | 438.00 | 438.00 | 444.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
TIDMBPET
RNS Number : 2767U
BMO Private Equity Trust PLC
22 November 2019
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22 November 2019
BMO Private Equity Trust PLC
Quarterly results for the three months to 30 September 2019 (unaudited)
-- Share price total return for the three months of 3.4 per cent for the Ordinary Shares
-- Net asset value of 390.81p per Ordinary Share reflecting a total return for the three months of 1.7 per cent for the Ordinary Shares
-- Quarterly dividend of 3.87p per Ordinary Share to be paid on 31 January 2020
Introduction
As at 30 September 2019, the net assets of the Company were GBP289.0 million giving a net asset value ("NAV") per share of 390.81p and a total return over the quarter of 1.7%. For the first nine months of the year, the NAV total return was 4.1%. With the discount reducing from 17.9% at 31 December 2018 to 7.6% at 30 September 2019 the share price total return for this nine-month period was an impressive 17.6%. At 30 September 2019 the Company had net debt of GBP27.5 million. Outstanding undrawn commitments were GBP124.1 million with approximately GBP17.5 million of these to funds where the investment period has expired and where we would expect only a small proportion to be drawn.
The next quarterly dividend of 3.87p per share will be paid on 31 January 2020 to shareholders on the register on 10 January 2020. The ex-dividend date is 9 January 2020.
New Investments
There were no new investments in the third quarter. A substantial 'follow-on' investment of GBP3.0 million was made into oil services company Ashtead Technology. This was to enable our investor group, led by energy specialists Buckthorn, to buy-out a large minority shareholder. Ashtead has made good progress recently as demand for its subsea monitoring equipment has picked up.
After the quarter end we completed a co-investment of GBP4.1 million into Amethyst Radiotherapy. This is a chain of radiotherapy clinics located across Europe from Poland to France. The investment is led by The Rohatyn Group, who specialise in Central and Eastern Europe. The investment case centres on a significant expansion of the number of clinics across Europe. Advances in medical science mean that radiotherapy clinics with the latest equipment are in strong demand. Also, in our co-investment portfolio GBP0.3 million was added to RGI, the Italy based provider of software for the insurance sector, which has made an acquisition of a complementary business operating in German speaking Europe.
The funds in our portfolio have been active in building out their portfolios. The larger drawdowns are quite diverse by geography and industrial sector. In the UK August Equity Partners IV called GBP0.6 million for Esland (residential care for young people with special needs). Piper Private Equity VI called GBP0.3 million for Mous Products (tech accessories). In Germany Bencis V called GBP0.4 million for Gebhardt-Stahl (steel reinforcement profiles for the HVAC systems and PVCu window frames). DBAG VII called GBP0.5 million for Kraft&Bauer (fire extinguishing systems for tooling machinery). In the Nordic region the funds have also been active. Procuritas Capital VI called GBP0.4 million for Temporary Space (temporary accommodation for schools, health centres and offices). Summa I called GBP0.3 million for LOGEX Group (data analytics software to improve healthcare outcomes). Vaaka Partners Buyout Fund III called GBP0.3 million for Lyyti (Finnish market leader for event management software). In the USA Stellex called GBP0.3 million for the combined investment in ship repair companies MHI and Vigor. MHI was an existing Stellex investment that has been merged with and sold into Vigor. The Carlyle Group has backed the deal and assumed the leadership position.
Total drawdowns and co-investments in the third quarter were GBP11.2 million bringing the total for the year to date to GBP39.2 million. This is approximately 25% below the cumulative investments by this stage last year.
Realisations
Realisations and income received for the quarter was GBP6.4 million giving a total for the year of GBP31.8 million.
It has been a fairly quiet quarter with no large exits from the co-investment portfolio. There were several smaller realisations from across the fund's portfolio. In the UK Horizon Capital (formerly Lyceum) made a partial exit of media company AgriBriefing through a refinancing returning GBP0.7 million, 1.5x cost. Inflexion 2010 Fund sold agricultural laboratory testing services business Cawood Scientific to Waterland Private Equity returning GBP0.4 million or 2.8x cost and 43% IRR. Venture capital fund SEP IV sold cloud storage and document collaboration business Workshare to trade buyer Litera Microsystems returning GBP0.2 million, 2.0x cost, 11% IRR.
In France, as previously reported, Chequers Capital XV exited thermal solutions and temperature measurement systems for cables company Thermocoax returning GBP0.7 million, 2.7x cost. In Germany DBAG VI sold specialised films for consumer goods packaging business Infiana to financial buyer Pamplona returning GBP0.4 million, 2.1x cost, 25% IRR. Lastly and, most significantly, in the USA Blue Point Capital III sold The Hilsinger Company, a global supplier of optical accessories and products, returning GBP1.1 million, 3.7x cost, 28% IRR.
Valuation Changes
There were a number of valuation changes in both directions this quarter. The largest positive (GBP1.4 million) was from our co-investment in Croatia based large format pet retailer Pet Network (TRG Pluto) which has traded strongly. There was another uplift of GBP1.3 million from the receipt, after the quarter end, of a deferred consideration relating to our previous holding in fishing tackle company Fox. This was sold by Nextwave to Mayfair Partners in 2015 with the deal including the potential for the vendors to benefit from a subsequent sale. Mayfair have now sold Fox to a strategic buyer in the US and that has triggered a deferred payment of GBP1.3 million. As we were carrying this entitlement at nil value it is an effective uplift of the full amount. Elsewhere in the portfolio there has been good progress with an uplift of GBP0.8 million from TDR II mainly driven by the movement in the share price of Williams Scotsman, the modular buildings company. Volpi Capital I is up by GBP0.7 million reflecting good progress in its portfolio. In Spain Corpfin Capital IV is up by GBP0.7 million reflecting actual and imminent realisations within a strongly performing portfolio. Astorg VI also has a performing portfolio and is uplifted by GBP0.6 million. August Equity Partners IV is doing well and a broadly-based uplift totalled GBP0.5 million.
There were a few setbacks in valuations. Avalon, the funeral plans provider, faces a difficult market which is down, at least in part, in response to some regulatory changes which will see the FCA start regulating the sale of funeral plans. In the longer term this should benefit Avalon but in the short term it has necessitated a downgrade of GBP2.1 million. Our holding in clothing company Weird Fish has been struggling against a very soft market and this is downgraded by GBP1.4 million. Our US based restaurant chain Rosa Mexicano has experienced poor trading and has been written down by GBP1.0 million. Following the quarter end Rosa Mexicano has been refinanced.
Financing
The Company has a large amount of headroom on its borrowing facility with the term loan of EUR25 million (GBP20.9 million) fully drawn and GBP9.7 million of the GBP75 million revolving credit facility drawn giving GBP66 million available subject to covenant compliance. With net debt of GBP27.5 million, or just under 10% of NAV, this is a useful amount of gearing which should enhance shareholder returns. It looks likely that the total proceeds from realisations for 2019 will be some way below the record total for 2018. This quarter is unusual of late in that there was no net effect from currency movements.
Outlook
Activity within the private equity market internationally remains at healthy levels albeit below 2018 levels. This is backed by on going appetite for the asset class and strong fund raising. New deals are being initiated in all markets in near record volumes. The very strong market for exits which has characterised the last three years is showing some signs of catching its breath. The trading performance of the portfolio is robust with a limited number of sector or company specific areas of concern. The price of new deals remains high by historic standards driven in part by the considerable amounts of private equity commitments and abundant cheap debt. Despite this the lower mid market in Europe remains relatively less expensive and continues to be a good hunting ground for our value-oriented investment partners. The heterogenous nature of our dealflow also continues. At this stage in the year, there is considerable scope to build further shareholder value.
Hamish Mair
Investment Manager
BMO Investment Business Limited
BMO PRIVATE EQUITY TRUST PLC
Statement of Comprehensive Income for the
nine months ended 30 September 2019 (unaudited)
Revenue Capital Total
GBP'000 GBP'000 GBP'000
------------------------------------------ --------- --------- ---------
Income
Gains on investments held at fair value - 13,081 13,081
Exchange gains - 588 588
Investment income 3,010 - 3,010
Other income 56 - 56
------------------------------------------ --------- --------- ---------
Total income 3,066 13,669 16,735
------------------------------------------ --------- --------- ---------
Expenditure
Investment management fee - basic fee (206) (1,858) (2,064)
Investment management fee - performance
fee - (1,289) (1,289)
Other expenses (619) - (619)
------------------------------------------ --------- --------- ---------
Total expenditure (825) (3,147) (3,972)
------------------------------------------ --------- --------- ---------
Profit before finance costs and taxation 2,241 10,522 12,763
Finance costs (132) (1,190) (1,322)
------------------------------------------ --------- --------- ---------
Profit before taxation 2,109 9,332 11,441
Taxation (401) 401 -
Profit for period/total comprehensive
income 1,708 9,733 11,441
Return per Ordinary Share 2.31p 13.16p 15.47p
BMO PRIVATE EQUITY TRUST PLC
Statement of Comprehensive Income for the
nine months ended 30 September 2018 (unaudited)
Revenue Capital Total
GBP'000 GBP'000 GBP'000
---------------------------------------------- --------- --------- ---------
Income
Gains on investments held at fair value - 20,913 20,913
Exchange gains - 216 216
Investment income 944 - 944
Other income 49 - 49
---------------------------------------------- --------- --------- ---------
Total income 993 21,129 22,122
---------------------------------------------- --------- --------- ---------
Expenditure
Investment management fee - basic fee (486) (1,457) (1,943)
Investment management fee - performance
fee - (2,123) (2,123)
Other expenses (582) - (582)
---------------------------------------------- --------- --------- ---------
Total expenditure (1,068) (3,580) (4,648)
---------------------------------------------- --------- --------- ---------
(Loss)/profit before finance costs and
taxation (75) 17,549 17,474
Finance costs (320) (958) (1,278)
---------------------------------------------- --------- --------- ---------
(Loss)/profit before taxation (395) 16,591 16,196
Taxation - - -
(Loss)/profit for period/total comprehensive
income (395) 16,591 16,196
Return per Ordinary Share (0.53)p 22.44p 21.91p
BMO PRIVATE EQUITY TRUST PLC
Statement of Comprehensive Income for the
year ended 31 December 2018 (audited)
Revenue Capital Total
GBP'000 GBP'000 GBP'000
-------------------------------------------- --------- --------- ---------
Income
Gains on investments held at fair value - 36,966 36,966
Exchange gains - 35 35
Investment income 2,340 - 2,340
Other income 81 - 81
-------------------------------------------- --------- --------- ---------
Total income 2,421 37,001 39,422
-------------------------------------------- --------- --------- ---------
Expenditure
Investment management fee - basic fee (660) (1,980) (2,640)
Investment management fee - performance
fee - (2,277) (2,277)
Other expenses (760) - (760)
-------------------------------------------- --------- --------- ---------
Total expenditure (1,420) (4,257) (5,677)
-------------------------------------------- --------- --------- ---------
Profit before finance costs and taxation 1,001 32,744 33,745
Finance costs (428) (1,286) (1,714)
-------------------------------------------- --------- --------- ---------
Profit before taxation 573 31,458 32,031
Taxation (109) 109 -
Profit for year/total comprehensive income 464 31,567 32,031
Return per Ordinary Share 0.63p 42.69p 43.32p
BMO PRIVATE EQUITY TRUST PLC
Balance Sheet
As at 30 As at 30 As at 31 December
September September 2018
2019 2018
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
--------------------------------------- ------------ ------------ ------------------
Non-current assets
Investments at fair value through
profit or loss 318,825 278,914 295,242
--------------------------------------- ------------ ------------ ------------------
Current assets
Other receivables 21 23 142
Cash and cash equivalents 3,188 23,239 21,335
--------------------------------------- ------------ ------------ ------------------
3,209 23,262 21,477
Current liabilities
Other payables (2,389) (3,179) (4,267)
Interest-bearing bank loan (9,732) - (26,821)
--------------------------------------- ------------ ------------ ------------------
(12,121) (3,179) (31,088)
Net current (liabilities)/assets (8,912) 20,083 (9,611)
--------------------------------------- ------------ ------------ ------------------
Total assets less current liabilities 309,913 298,997 285,631
Non-current liabilities
Interest-bearing bank loan (20,945) (26,561) -
Net assets 288,968 272,436 285,631
--------------------------------------- ------------ ------------ ------------------
Equity
Called-up ordinary share capital 739 739 739
Share premium account 2,527 2,527 2,527
Special distributable capital
reserve 15,040 15,040 15,040
Special distributable revenue
reserve 31,403 31,403 31,403
Capital redemption reserve 1,335 1,335 1,335
Capital reserve 237,924 221,787 234,587
Revenue reserve - (395) -
Shareholders' funds 288,968 272,436 285,631
--------------------------------------- ------------ ------------ ------------------
Net asset value per Ordinary Share 390.81p 368.45p 386.29p
BMO PRIVATE EQUITY TRUST PLC
Reconciliation of Movements in Shareholders' Funds
Nine months Nine months Year ended
ended 30 September ended 30 31 December
2019 September 2018
2018
(unaudited) (unaudited) (audited)
------------------------------ -------------------- ------------ -------------
GBP'000 GBP'000 GBP'000
Opening shareholders' funds 285,631 264,144 264,144
Profit for the period/total
comprehensive income 11,441 16,196 32,031
Dividends paid (8,104) (7,904) (10,544)
------------------------------ -------------------- ------------ -------------
Closing shareholders' funds 288,968 272,436 285,631
------------------------------ -------------------- ------------ -------------
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 2018. Earnings for the nine months to 30 September 2019 should not be taken as a guide to the results for the year to 31 December 2019.
During the year to 31 December 2018, the management fee and bank loan interest were allocated 75 per cent to capital and 25 per cent to revenue. In accordance with the Board's expected long term split of returns in the form of capital gains and income, with effect from 1 January 2019 the allocation basis has been revised to 90 per cent to capital and 10 per cent to revenue.
2. Investment management fee:
Nine months ended Nine months ended Year ended 31 December
30 September 2019 30 September 2018 2018
(unaudited) (unaudited) (audited)
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 206 1,858 2,064 486 1,457 1,943 660 1,980 2,640
Investment
management
fee - performance
fee - 1,289 1,289 - 2,123 2,123 - 2,277 2,277
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
206 3,147 3,353 486 3,580 4,066 660 4,257 4,917
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
3. Finance costs:
Nine months ended Nine months ended Year ended 31 December
30 September 2019 30 September 2018 2018
(unaudited) (unaudited) (audited)
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 loans 132 1,190 1,322 320 958 1,278 428 1,286 1,714
4. Returns and net asset values
Nine months ended Nine months Year ended 31
30 September 2019 ended 30 September December 2018
2018
(unaudited) (unaudited) (audited)
The returns and net asset
values per share are based
on the following figures:
Revenue Return GBP1,708,000 (GBP395,000) GBP464,000
Capital Return GBP9,733,000 GBP16,591,000 GBP31,567,000
Net assets attributable GBP288,968,000 GBP272,436,000 GBP285,631,000
to shareholders
Number of shares in issue
at end of period 73,941,429 73,941,429 73,941,429
Weighted average number
of shares in issue during
the year 73,941,429 73,941,429 73,941,429
5. The financial information for the nine months ended 30 September 2019, 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 2018, 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.bmoprivateequitytrust.com
Legal Entity Identifier: 2138009FW98WZFCGRN66
For more information, please contact:
Hamish Mair (Investment Manager) 0131 718 1184 Scott McEllen (Company Secretary) 0131 718 1137 hamish.mair@bmogam.com / scott.mcellen@bmogam.com
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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November 22, 2019 02:00 ET (07:00 GMT)
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