Double-edged, I suppose!
Potential for good exits increases, but temptation to over-pay for new investments.
Another VCT of mine (Pembroke) has made two good exits this year at significant premiums. |
I have read the PVN AR just out and not surprised to read the following in the outlook section of the Investment Manager's report.
quote
We continue to see a strong flow of interesting new investment
opportunities. However, increasing competition for deals means that
valuation expectations are rising rapidly
unquote |
Well they've just announced a new offer. Like you, I'll pass. Am looking at the Albion offer for '19-'20 but will wait till after the election result. |
I have just read the interims of both PGOO and PVN for the period till end August and am glad that did not go into recent fund raising given the huge amounts of cash they have had and the write offs they have made in the last six month reporting period.
Be interesting to hear what they have to say in the Wednesday presentation. |
There is a detailed report on ProVen's recent AGM which can be found in our members area here:
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Yup, I've just read it.
I think they're raising again, but it may be for 18-19 not 19-20. |
Straight lift of the post by james188 on Lemonfool....pointless typing this as well as summed up perfectly. A happy holder.
.....................................
And today we have the full detail in the half-year report just out. A special dividend of 25.25p per share declared, payable on 30th November.
ProVen Growth is also pretty good at 4.5p per share, but the ProVen VCT realisations over the last six months have been simply outstanding. It obviously means a big reduction in the NAV because (for ProVen VCT) the dividend equates to 25.3% of the NAV as at 1 March 2018. The manager is also in line for a large performance fee. It should mean that the presentations by ProVen next week will be a happy event. Anyone else going? |
@ Jombaston - this fund is showing the way with VCTs. Most of the dross has disappeared but there are still many which take the fees and achieve little. |
IMS out today, confirming the substantial disposals.
As discussed, the Watchfinder stake has been sold for 2x the carrying value as of 1/3/18 giving a 8.8x on intial cost and a whacking £23m.
Chargemaster has generated £7.6m, which is a £2m uplift on previous valuation, but less than the headline £130m sale implies. I suspect there could be further contingent payments.
No mention of specials but surely a large one awaits with 25% of the fund (31 May value)having been realised. |
Seen the BP Chargemaster news now. Never been correct with a guess that quickly before! At £130m and with Proven VCT having 8.5% about £11m. That doubles the Feb 18 valuation being carried. Don’t get too excited it’s about an extra 5.5p to the NAV before costs assuming debt and cash free. Good news probably also for users and the need for a massive network of charging points. |
Well BP are buying Chargemaster should be a nice profit for us in there somewhere. Might be a good time as every time I come across a Chargemaster customer they are not happy. Poor service typical of a build up to sell. All good for me as my company have taken work from them and I get a nice divi from the share sale. |
I did note that the possible Chargemaster IPO to include a fund raise didn’t go ahead. Instead they raised privately and I guess at a higher price than the Feb 18 carrying valuation. Chargemaster could be right in the sweet spot. Longer term and speculating I wonder if this is where Shell and BP will find their future. Wish I had a few more. |
Chargemaster is another one with lots of potential. They already recognise this, but there's more to come.
Another company (Nexus Infrastructure) is rolling out ev charging along with water, broadband, electricity on whole housing estates in the south and midlands. And: "Launch of quality end to end solution to design, install and connect rapid electric vehicle charging points for a variety of customers such as charge point network operators, local authorities, vehicle OEMs, direct B2B and direct B2C".
The government has provided £400m towards funding a national charging network. |
And
"There are also a number of other companies in the portfolio that are nearing an exit, which could result in further gains being realised by the Company in the coming year." |
Would be nice but commission exp etc will take its toll. I was going to sell all my shares a little while ago glad I held on now. Feel a cruise coming on. |
Jombaston - I was just looking at the NAV uplift of 10p. I hope you're right, though! |
They must have sold Watchfinder at a big premium to book value.
It was already 10% of the fund (at end Feb) so I would venture that the special could be even larger!
It was marked at 3.9x purchase - could this turn out to be an 8-bagger? |
NAV 110.0p from 99.7p (28/02):
The Board of ProVen VCT plc (the "Company") is pleased to announce that Richemont Holdings UK, a subsidiary of the Swiss luxury group Compagnie Financière Richemont SA, has agreed to acquire 100% of the share capital of portfolio company Watchfinder, subject to legal and regulatory approval. Based on the expected completion proceeds, less a discount to reflect the risk of non-completion, the unaudited net asset value of the Company at 6 June 2018 is 110.0p per share.
So, assuming success, we ought to get a special dividend here of up to 10p. |
Just had a quick look. Proven, has 7% of Chargemaster...so potential revaluation of £120m doubles up the £4.2m carrying value in recent interims. I think that’s about 4p of puff if they can get people to stump up. Big gap between this valuation and their Accounts but of course I don’t know what’s happening with their growth. Watching with interest but obviously not going to make me rich...back to work. |
One of the ProVen holdings, Chargemaster, is rumoured to be preparing an IPO on AIM in the summer. A profitable exit? |
There is a blog post on 'VCTs – Possible budget changes and pre-planning our response' which mentions PVN available here: |
Point taken Jonwig to the extent that they will be paying out £7m in dividends reducing cash as of Aug 31 from £34m to £27m which will one assume be increased by the £4.4m new share issue making it approx 30% of total assets before net cash movements in investments. |
Cerrito - isn't some of that being paid as the special divi? I'm inclined to agree, though - they charge too much in fees to simply hold cash. I won't be subscribing either. |
Note that for the 4th half year end running PVN has a third of its assets in cash which makes me leary of joining the new fund raising. |
For interest, possibly: |
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