Honeycomb Investment Trust PLC NAV and Monthly Update - April 2021 (9488Z)

TIDMHONY

RNS Number : 9488Z

Honeycomb Investment Trust PLC

27 May 2021

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE UNITED KINGDOM), CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL

27 May 2021

Honeycomb Investment Trust plc

Honeycomb Investment Trust plc (the "Company" or "Honeycomb") announces that the Investment Manager's monthly factsheet for 30 April 2021 is now available on its website at http://www.honeycombplc.com .

Net Asset Value per Share

The Company announces that its unaudited Net Asset Value ("NAV") per share as at 30 April 2021 on a cum-income basis was 1,021.5 pence, based on a NAV of GBP360.2 million, and on an ex-income basis was 1,017.8 pence, based on a NAV of GBP358.9 million. The NAVs have been calculated by Apex Fund Services (UK) Ltd.

The Company delivered a NAV return of 0.73% for the month of April, or 8.9% annualised. NAV has increased from GBP357.6m in March, to GBP360.2m at the end of April.

Investment Assets remained relatively flat in the month at GBP613m, from GBP617m in March. Repayments across senior structured facilities were broadly offset by drawdowns across the senior property portfolio. Returns in the month were driven by a strong annualised credit asset return of 9.0%. The portfolio continues to perform well with strong levels of cash collection.

Pipeline & Market Commentary

As the UK economy opens up, the Investment Manager has continued to identify attractive lending opportunities, with a near term pipeline of GBP1.1bn.

In the post-COVID landscape, the company continues to focus on opportunities offering resilient returns and downside protection through structural security and asset backing, with c.94% of the near-term pipeline being structurally secured.

The Investment Manager also sees significant opportunities in the real estate sector and SME lending sector, which account for c60% of the near-term pipeline. There is also a focus on ESG within the pipeline, particularly regarding electric vehicle opportunities.

We note the recent developments regarding Amigo Holdings Plc and the court's decision to not sanction the scheme of arrangement. We continue to monitor the situation closely with the Honeycomb NAV exposure to Amigo senior secured bonds of GBP9.8m. As previously disclosed, Honeycomb adopts amortised cost accounting across its credit portfolio including the bond portfolio. This can differ to the on-screen market value of traded securities. As at 26 May 2021, the market value of the Amigo bonds was GBP8.3m. Amigo combined with other bonds in the Honeycomb portfolio has a NAV exposure of GBP22.1m, versus a market value as at 26th May of GBP22.6m.

For further information about this announcement please contact:

Pollen Street Capital - Investment Manager

Matthew Potter / Julian Dale: [phone]

Liberum Capital Limited - Joint Broker

Chris Clarke / Louis Davies: [phone]

Cenkos Securities plc - Joint Broker

Justin Zawoda-Martin: [phone]

Link Company Matters Limited - Corporate Secretary

Paul Johnston: [phone]

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May 27, 2021 02:00 ET (06:00 GMT)