31st Aug 2016 10:39
LONDON (Alliance News) - BBGI SICAV SA on Wednesday said its net asset value grew in its first half and hiked its 2016 dividend target.
The investor said its net asset value rose to GBP521.8 million as at June 30 from GBP479.8 million at the end of December, whilst its net asset value per share rose to 120.80p from 111.5p at the end of December.
BBGI said its results had been "heavily influenced by the market reaction to the UK referendum on 'Brexit'".
"The resultant weakening of sterling, the company's reporting currency, has improved the sterling valuation of the 60% of our assets which are held in Canada, Australia, the US and Continental Europe and demonstrates the benefit of having a portfolio which is diversified by both geography and currency," said Chairman David Richardson.
"The world economic environment remains volatile and the additional complication of the UK's withdrawal from the European Union will undoubtedly cause markets to be wary. Your company's strong cash flows, long term contracts with sound counter-parties and geographic and currency diversity underpin its ability to continue to pay dividends and offer you a greater degree of certainty," Richardson noted,
The company said its current facilities give it sufficient scope for further expansion, though said it does not intend to have structural leverage and therefore expects to raise further capital "at an appropriate time".
BBGI declared an interim dividend of 3.125p per share, up from the 3.00p per share offered a year earlier, following which it raised its 2016 dividend target to 6.25 pence per share from its previous 6.00p per share target.
Shares in BBGI were up 0.3% at 146.00p on Wednesday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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