21st Aug 2020 10:05
(Alliance News) - BMO Private Equity Trust PLC on Friday said its net asset value declined in the first half of 2020, with its results yet to include all post-March revaluations.
The Scotland-headquartered unlisted companies investor reported that its NAV per share fell to 384.44 pence as at June 30 from 388.05p the year before and 411.51p at the end of 2019.
Chair Mark Tennant said: "This valuation includes the initial adjustments in value related to the coronavirus pandemic and the ensuing lockdowns. Although there is some degree of normalisation currently taking place, the crisis remains a very real challenge for all companies and it is likely that this will be reflected in valuations for at least the next two quarters."
Tennant highlighted that the valuation is largely based on March 31 valuations prepared in May and "only a small minority of" June 30 valuations had been received at time of calculation, which he said is a "normal process in line with the usual timetable".
Given this, he said: "It is anticipated that the full impact of the crisis, both positive and negative, will unfold over time. It is fair to say that nearly all companies are adversely affected with only a handful, from hundreds, deriving a measurable benefit."
The company paid a 3.99p per share quarterly interim dividend in July and declared another of the same amount payable in October.
In terms of outlook, Tennant said: "Although we are in the midst of the crisis now, it appears that to date the portfolio as a whole is holding up somewhat better than we had initially expected and well above some of the more aggressive 'worst case' forecasts. At the time of writing the lockdowns have eased in nearly all major economies but none of them are operating completely normally and there remains the very real possibility of a 'second peak' creating fresh disruption over the coming months.
"That said, the diversified nature of the company's portfolio is proving beneficial and is acting to temper the downgrades across the whole portfolio. We remain confident that your company's portfolio will emerge from these challenges largely intact and that it will in time deliver excellent long term returns for shareholders."
Shares in BMO Private Equity were down 0.3% at 319.40p in London on Friday morning.
By Anna Farley; [email protected]
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